AT&T has been pressed to give up the deal after 18 US Senate and US Intelligence Committee members have signed a letter to regulators expressing concerns about Chinese companies' engagement in the US telecommunications sector.
AT&T reportedly pulled out of the deal under pressure from U.S. lawmakers who wrote to the FCC citing concerns "about Chinese espionage in general, and Huawei's role in that espionage in particular". According to the reports, AT&T has decided not to carry Huawei's smartphones.
The refusal is the latest example of a Chinese company struggling to develop its U.S. business.
The deal with AT&T was going to be Huawei's first partnership with a premier mobile carrier in the U.S. While customers in the U.S. can buy Huawei devices, they are not offered as part of a data package by a U.S. -based carrier.
But the deal, which was supposed to be announced at the CES consumer trade show in Las Vegas on Tuesday, was canceled by the United States side at the last minute.
"We win the trust of the Chinese carriers, we win the trust of the emerging markets. and also we win the trust of the global carriers, all the European and Japanese carriers", he said.
The letter said Congress has "long been concerned about Chinese espionage in general, and Huawei's role in that espionage in particular", according to the Times' report.
In the meantime, the court rejected other claims made by Huawei. Richard Yu, CEO of Huawei's consumer products division, addressed the void agreement at his CES keynote speech, in which he presented the Mate10 Pro for the USA market. It may be hard to find another U.S. mobile operator to carry its products.
Huawei's also got a winking bit of kinship with the actress in that both parties have had some issue with pronunciation here in the States, a fact that will play a role in the company's upcoming marketing. Companies have increasingly filed patent-related lawsuits in China as the nation takes position as the world's top smartphone market.
Huawei perhaps could take a lesson or two from Apple in exploring the USA market.