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Huawei and ZTE Corporation are to be disallowed from the domestic telecom equipment market, says the United States House Intelligence Committee, because of security fears caused by their affiliation with the Chinese government. Thus far, it is not certain whether the committee’s position might impact infrastructure sales only or mobile phone sales in the United States as well, which are rapidly expanding. Whichever happens, infrastructure rivals like Alcatel-Lucent (NYSE:ALU), CIENA Corporation (NASDAQ:CIEN), Cisco Systems (NASDAQ:CSCO), LM Ericsson Telephone Company (NASDAQ:ERIC), and Tellabs (NASDAQ:TLAB) could likely benefit.
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