As Australia reels from one cyber security disaster to another, Telstra and Optus who have both been hacked recently, have moved to expand their range of communications products from banned Chinese Company ZTE.

Some high-level observers have told ChannelNews that the US Federal Communications Commission is set to ban more ZTE and Huawei products shortly, this will be the second time in 18 months that these two suppliers in Australia have been banned in the USA.

What we can reveal is that ZTE, is selling cheap handsets to Optus and Telstra that are so cheap, that security experts believe that the Chinese Communist Government could be subsidising the handsets.

The Chinese Government is believed to hold a major shareholding in ZTE.According to the ZTE Australia web site Telstra is selling 11 ZTE manufactured handsets and 1 5G Wi Fi Hotspot device and two 4G Hotspot devices manufactured by ZTE.

It’s also been revealed that Optus is selling eleven handsets manufactured by ZTE along with a 5G and 4G Broadband modem, an Optus Wi Fi Connect Hotspot, an Optus USB Connect device, along with a ZTE manufactured 4G Home modem.

Both Telstra and Optus are masking the involvement of ZTE in these products by branding them as either Optus or Telstra products.

As one supplier said, “Consumer would never know that they are buying a product manufactured by a banned Chinese Company that the Communist Party of China could influence anytime they want”.

Numerous reports have claimed that President Xi Jinping has expanded the CPC’s presence in private business firms, with some giving estimates that 68% of private Chinese firms now have a Communist Party branch within the firm, and some regions are aiming for 95%.

According to one high profile US Congressional investigation of Chinese tech firms Huawei and ZTE, ‘experts in Chinese political economy agree that it is through these Committees that the Party exerts influence, pressure, and monitoring of corporate activities.

This is one reason the US and other governments have imposed sanctions or trade restrictions on these ostensibly private corporations.

Earlier this month the U.S. Federal Communications Commission moved to gain approval to ban new telecommunications equipment and products from China’s Huawei Technologies and ZTE on national security grounds, according to an agency document.

FCC Chairwoman Jessica Rosenworcel last week circulated the proposed ban to the other three commissioners for final approval.

When approved companies similar Companies similar to Telstra and Optus would not be able to sell the Companies products in the USA without equipment authorisation.

“The FCC remains committed to protecting our national security by ensuring that untrustworthy communications equipment is not authorized for use within our borders, and we are continuing that work here,” Rosenworcel said in a statement last night.

This year, the FCC added Russia’s AO Kaspersky Lab, China Telecom, China Mobile International, Pacific Networks Corp and China Unicom to the covered list.

All these technology Companies operate in Australia.

ChannelNews has been told that Vodafone has refused to range the ZTE product range despite the cheap pricing.

Recently the TPG Vodafone business started ranging three prepaid handsets a $99 V Light, pre-paid handset, a $129 V Smart handset, and a $149 V Pro handset.
These handsets are manufactured by Mobi Wire.

The loser in the pre-paid market was TCL who originally supplied the Alcatel model range before pulling the handset from the market.

ChannelNews has asked both Optus and Telstra to comment on the sale of ZTE products in Australia.