Chunghwa Telecom Co’s (中華電信) long-term equipment purchases from UTStarcom Holdings (UT思達康), which is allegedly funded by the Chinese Communist Party, might have put the nation’s telecommunications at risk, Democratic Progressive Party (DPP) Legislator Chen Ying (陳瑩) said yesterday.
Chen said that Chunghwa Telecom has flouted a government prohibition on the purchase of Chinese-manufactured equipment for 4G network systems since at least 2013.
In 2013, the legislature’s Transportation Committee passed a resolution stating that any infrastructure plan or 4G network development should not use Chinese-made products, and in May 2014, the National Security Bureau issued a ban on such purchases.
Photo: Chien Jung-fong, Taipei Times
Chen said she had information showing that in 2014, Chunghwa Telecom signed a three-year contract with Stark Technology (敦陽科技) and Welltek System Engineering (暐特), who serve as agents for UTStarcom in Taiwan, for a project to enhance Chunghwa Telecom’s 4G LTE mobile backhaul bandwidth.
UTStarcom said in a news release in 2012 that Chunghwa had awarded it a packet transport network (PTN) commercial trial contract.
While UTStarcom is registered in the US, its principal office is in Hong Kong, while its operations and research and development center is in Hangzhou, China, Chen said.
Beijing E-Town International Investment & Development (北京亦莊國際) in 2010 bought 10.7 percent of UTStarcom for US$23 million, making E-Town the company’s third-largest shareholder, Chen said.
E-Town’s Web site says it is a state-owned company, she added.
Chen said that the Organization Department of the Communist Party of China Web site describes UTStarcom as a party-owned corporation.
UTStarcom’s operation is just like Huawei Technologies Co (華為), first registering in the Cayman Islands, before being invested in by Chinese state-owned companies, Chen said, adding that as of 2013, UTStarcom had a registered subsidiary in Taiwan.
Chen called on the National Communications Commission and the bureau to launch an investigation.
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