The National Communications Commission (NCC) yesterday said it is investigating whether Chunghwa Telecom has violated regulations governing the use of packet transport network (PTN) products manufactured in other nations.
The commission issued the statement after Democratic Progressive Party Legislator Chen Ying (陳瑩), a cochair of the Legislative Yuan’s Social Welfare and Environmental Hygiene Committee, said Chunghwa Telecom has since 2013 used PTNs produced by Hong Kong-based UTStarcom and Germany’s Coriant, both of which she said are funded by Chinese investors.
The two firms have downplayed Chinese investment by registering in foreign countries, Chen said, adding that using their PTNs would expose Taiwanese to greater information security risks and lead to breaches of national security.
Chunghwa Telecom’s PTN contracts with UTStarcom and Coriant are valid for three years and are worth a total of NT$140 million (US$4.63 million), she said.
As the contracts are to expire soon, the telecom is expected to open bidding for the PTNs, Chen said, adding that the commission should launch an investigation into whether Chunghwa Telecom has violated relevant regulations.
The commission said that it would investigate the alleged connections between the firms and Chinese investors, adding that Chunghwa Telecom has been asked to offer relevant information.
Whether UTStarcom and Coriant meet the requirements for foreign companies whose products can be purchased and used by Taiwanese telecoms needs to be determined by the Investment Commission, the NCC said, adding that it would assist in such an investigation as needed.
Neither UTStarcom nor Coriant are Chinese brands, the NCC said, adding that it would handle the matter based on the results of the investigation.
The nation’s telecoms are prohibited from using core networking products manufactured by Chinese companies, such as Shenzhen-based Huawei Technologies.
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