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Telenor suspends business with ZTE

Reports are emerging that Norway's Telenor has suspended ZTE from tenders for new business for six months after the Chinese equipment vendor breached its code of conduct.

"We have suspended ZTE from participating in tenders and new business opportunities for a period of six months ending March 3 next year," said Telenor spokesman Dag Melgaard, in a report by Reuters.

Melgaard said the suspension covers the whole of the Telenor group and its operating companies worldwide, and is based on a breach in relation to a "procurement process."

Telenor had to answer some difficult questions in September after reports of poor working conditions and child labour at one of the subcontractors to its Bangladesh operation Grameenphone.

However, an un-named analyst at a European bank said in the Reuters report that he would be surprised if Telenor's dealings with ZTE have been put on hold for the same reason.

Keep an eye on Total Telecom for all the latest developments.
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