U.S. approval of Sprint-Softbank deal may hinge on China

As a condition for approving Softbank's $20 billion acquisition of Sprint Nextel, the U.S. government is seeking oversight of network equipment purchases to prevent gear from Chinese suppliers Huawei Technologies and ZTE from becoming part of the U.S. infrastructure, according to the Wall Street Journal.

The two companies have already attracted the criticism of the U.S. House Intelligence Committee, which released a report last October that accused Chinese telecommunications gear makers of being threats to U.S. security and that discouraged U.S. companies from buying their equipment. In January, the U.S. Department of Justice asked the Federal Communications Commission to defer Softbank's deal for Sprint, citing a review of national security concerns.

While reviews and negotiations continue, the U.S. government is expected to require advance notification of equipment purchases for the struggling carrier's network core and to ... [Read more]