Serious questions are being asked as to why Telstra and Optus are still doing business with a banned networking Company, with Optus offering a $279 Chinese 5G smartphone at prices their competitors cannot match, and Telstra 5G hubs that could expose Australians to a questionable Chine Company.
ZTE is a high-risk Chinese Company to do business with, according to US and Australian intelligence sources, but this has not stopped Optus and Telstra from sourcing handsets and 5G home hubs from the controversial Company who have been described as being in the pocket of the Chinese Communist Party.
Also sourcing manufacturing from ZTE is Samsung for their A Series and M Series range of mobile smartphones that are being sold at Harvey Norman, JB Hi-Fi and all three carriers Vodafone, Telstra, and Optus.
Earlier this month the Australian government and Telstra spent billions buying into a Pacific telecoms company to keep the Chinese Communist party out, it was seen as a political block to stop China’s influence in the region.
Telstra called the A$2.1bn deal a “unique and very attractive commercial opportunity to boost our presence in the region”.
But despite warnings as to how dangerous a relationship with the likes of ZTE is for both business and consumers, both Optus and Telstra are still cutting deals with the Chinese Company.
One insider said “It’s impossible not to do business with ZTE. They are the biggest manufacture of smartphones, they manufacture product for several big brands including Samsung, Nokia and Motorola”.
“Without ZTE and their Chinese manufacturing capability the price of handsets would rise 50% there would be no pre-paid devices”.
The insider is one of the world’s leading telecommunication executives.
Last week US President Joe Biden signed into law bans on ZTE, that blocked them from getting approval for network equipment licences in the country. Carriers in the USA have also stopped selling ZTE, and Huawei smartphones.
Also missing from US carriers were Chinese smartphone brands Oppo, Realme and Vivo.
The ‘Secure Equipment Act of 2021’ had received bipartisan support prior to it being signed by the President in the USA.
A visit to the Optus site reveals that their house brand Optus X Swift 5G smartphone that is selling for $279 the product is manufactured by ZTE with no indication as to what ZTE software is on the device.
A visit to the Telstra site reveals not only a whole bunch of Telstra branded smartphones that are manufactured by ZTE you will also find ZTE manufactured 5G and 4G hubs that are pitched at both Australian business and consumers.
A visit to the ZTE site reveals 10 Telstra branded handsets manufactured by the Chinese Company, along with 3 Wi Fi hubs.
On the Telstra site and in their stores where the ZTE products are being sold there is no reference to ZTE.
On the same ZTE web site there are five Optus X smartphones listed.
Unlike Telstra the back of the Optus house brand smartphones is branded with a ZTE logo.
According to industry sources TCL whose 5G TCL 20 R which is selling for $299 is subsidised by Vodafone.
We are still waiting for a reply from both Optus and Telstra.
