QMax owner Creative sues Huawei over failed WiMAX network

27 Feb 2012

Creative Technologies, the parent company of Singaporean WiMAX provider QMax Communications, is suing China’s Huawei Technologies for USD9.3 million following the failure of a mobile broadband project between them in the city-state, the Strait Times reports. QMax agreed a deal with Huawei to roll out a WiMAX network in Singapore in 2010 but is now seeking compensation from the vendor after the problem-affected network was shut down in December 2011. Details are sketchy, but it is understood Creative cites the failure to meet certain network performance requirements as the reason for the closure – while stopping short of naming Huawei directly in the lawsuit. QMax suspended its wireless broadband activities in the last quarter of 2011 ‘as the vendor for the equipment failed to deliver on the key network performance requirements set out in the relevant supply contract,’ it said. Creative and QMax are seeking compensation and damages and ‘have given notice to the vendor to terminate or rescind the supply contract on the grounds of material breach of the contract and/or misrepresentations by the vendor’.