Telecommunications

Eutelsat

Industry
Telecommunications
Symbol
FP: ETL
States
DC
NY
Country
France
Contact Information
Sources

Eutelsat website lists a satelite, EUTELSAT 7B, that provides TV services in Iran.

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"Peyman Jebeli, IRIB's [Islamic Republic of Iran Broadcasting] Vice President of Overseas Operations, said al-Kawthar, Iran's Arabic-language TV channel, was dropped by Eutelsat after five years of "strategic" operations, because it was unable to satisfy satellite expenses. Press TV and al-Alam are other TV channels that face shutdowns." (Diyaruna, "IRIB satellite TVs face shutdown amid US maximum pressure campaign," 7/3/20).

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"Paris Ambassador to Tehran François Sénémaud announced that the French-based satellite provider, Eutelsat, plans to win [a] contract with Iran to build a satellite for the country. "The Eutelsat company seeks cooperation with the Iranian Space Agency and is preparing a draft of its proposals to participate in the tender for build a satellite," Sénémaud said in a meeting with Iranian Communications and Information Technology Minister Mahmoud Vaezi in Tehran on Saturday. He said that Eutelsat and the French telecommunications operator, Orange, are also in talks with the Iranian firms to increase mutual cooperation." (Fars News, "French Envoy: Eutelsat Eager to Send Offer to Iran Satellite Tender," 10/26/2016).

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“Manoto TV, a commercial Persian-language TV channel, is launching on the Eutelsat 7B satellite.  The channel has signed a capacity agreement with Eutelsat Communications for exclusive broadcasting in HD from Eutelsat 7B, to expand its audience in Iran and the Middle East.”  (Broadband TV News, “Manoto TV choses Eutelsat 7B for HD broadcast,” 6/16/2016). 

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"The U.S. gave European satellite companies Intelsat SA and Eutelsat Communications SA another six months to win back Iran's business lost after lawmakers barred them from transmitting Iranian programming... The waiver has also allowed Eutelsat, which says it had its satellites jammed by Iranian authorities as far back as 2009, to again beam IRIB broadcasts. A spokeswoman said it wouldn't be feasible for a satellite provider to monitor content for forced confessions or other televised human rights abuses. 'We believe that's the responsibility of regulators,' she said. 'Each party has to do their own job. The main thing for us is to be compliant with the relevant parties.'" (The Wall Street Journal, "Intelsat, Eutelsat Granted New U.S. Waivers," 8/28/2014)

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"Eutelset stopped broadcasting 19 Islamic Republic networks from its Hotbird satellite starting October 15." (Radio Zamaneh, "Russia steps in to broadcast Iranian channels," 11/5/2012)

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"European satellite provider Eutelsat also took Iranian channels off the air last week, saying that the decision was made by the European Union." (Trend, "Intelsat takes Iranian channels off air," 10/22/2012) 

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"Eutelsat Communications SA said it stopped broadcasting the Iranian channels in light of European sanctions approved in March and a French regulatory decision. The move comes a little over a week after Iran escalated the jamming of Eutelsat satellites to censor broadcasts during recent protests over a plunge in the local currency... Though Eutelsat's decision to remove Iran's government-owned channels isn't related to the nuclear standoff, the move serves to isolate the Islamist Republic further... For years, IRIB has rented space on the popular Eutelsat satellite through Arqiva Ltd., a U.K.-based transmission company and middleman. Both companies said Monday they were suspending the Hotbird contract with Iran. Eutelsat is also planning to remove IRIB from other satellites it owns, a spokeswoman for the French company said, and has notified other transmission companies that rent space to IRIB on Eutelsat satellites apart from Hotbird... In explaining their move, Eutelsat also noted that the EU added IRIB Director Ezzatollah Zarghami to its sanctions list in March... Iranian human-rights organizations and opposition activists praised Eutelsat's decision." (The Wall Street Journal, "A Top Satellite Provider Cuts Off Iran State Broadcaster," 10/15/2012)

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"Satellite provider Eutelsat agreed with media services company Arqiva to block the Irib channels as of Monday morning because of 'reinforced EU council sanctions' Eutelsat spokeswoman Vanessa O'Connor said. Irib's access to Eutelsat was via a contract with Arqiva. Eutelsat would not comment on eventual financial consequences of the cutoff. Iran's Press TV said Irib could take legal action against Eutelsat over the cutoff. Irib's chief was among those targeted in a round of EU sanctions against Iran adopted in March, based on what European officials said were human rights violations in its programming, according to Eutelsat... Press TV says it's among the channels cut by the Eutelsat decision. Others include Farsi-language channels for Iranian expatriates and Arabic-language offerings, including the news channel Al-Alam." (Fox News, "European satellite provider cuts off 19 Iranian TV and radio stations because of EU sanctions," 10/15/2012)

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"The BBC, for example, launched its Persian-language channel in 2009 and beamed it from the 'Hotbird' satellite of Paris-based Eutelsat Communications SA, which is a satellite that large numbers of rooftop dishes in Iran are pointed at to receive free Persian channels... Besides Eutelsat, companies it uses include Intelsat SA, Telesat Holdings Inc. and AsiaSat, a Hong Kong-based operator in which General Electric Co. has a stake... Eutelsat, meanwhile, says it has been targeted repeatedly... The chief executive of Eutelsat, Michel de Rosen, said, 'I get pressure from many governments about many channels. Our permanent answer is: We will not do anything about a channel if we do not get a clear order backed by law.' Eutelsat says it did pull Libyan government channels in April after the European Union barred any technical aid to the Gadhafi regime. Later, North Atlantic Treaty Organization forces bombed the Libyan state satellite-television facility, which NATO said was being used to incite attacks on civilians... For 70 years it has had a Persian-language radio station, which is hard to block because it is short-wave; the BBC also has a Persian website, which is blocked in Iran but accessible via circumvention tools. For its TV channel, the BBC rented a frequency on Eutelsat's Hotbird, the most popular satellite in Iran for TV watchers... Because the jamming was causing collateral damage to neighboring channels on Hotbird, the BBC reluctantly agreed to a request from a satellite-space middleman to move to another Eutelsat satellite, called W3A... Eutelsat says it has filed numerous complaints with a U.N. agency that manages outer-space frequencies, the International Telecommunication Union, an arm of which stated in March that the interference 'appeared to be emanating from Iran.'" (The Wall Street Journal, "In Skies Over Iran, a Battle for Control of Satellite TV," 12/27/2011)


 

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"European satellite companies like Eutelsat, Intelsat and Arqiva provide extensive services to the Iranian state-owned Islamic Republic of Iran Broadcasting (IRIB), including for domestic Iranian radio and television broadcasts, and for Iran's growing list of foreign-language channels, like the English-language PressTV and the Arabic Al-Alam... But Eutelsat also hosts many of the stations whose programming Tehran jams... Over the past two years, during which Iran increased its jamming of Persian-language broadcasts from abroad, Eutelsat and Arqiva have done little to hold the Iranian government accountable... Either company could have contractually required Iran to stop its jamming, which is politically motivated censorship, or refused to carry IRIB. Instead Eutelsat's response was to discontinue broadcasting BBC Persian and VOA Persian on the most accessible and popular satellite, Hotbird6, and to move them to less accessible satellites... Last month, the European Parliament adopted a resolution calling for Eutelsat to cease service as long as illegal jamming is taking place." (The Wall Street Journal, "Broadcasting Tehran's Repression," 12/9/2011)

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"Iran is facing mounting international protests about its jamming of the BBC's Persian TV service (PTV) after the channel – which has millions of viewers and is hugely popular with opposition supporters – was taken off a satellite owned by Europe's leading operator. The BBC said today it was 'actively supporting' a formal complaint to the International Telecommunication Union, a UN-affiliated body, about "deliberate interference" from Iran. The ITU confirmed it had received representations from regulators in France, home to Eutelsat, owner of the Hotbird 6 satellite, which transmitted PTV until the end of last month... Eutelsat says PTV was removed from Hotbird 6 'in agreement' with the BBC, though sources close to the affair say the operator caved in to commercial and legal pressures from other customers broadcasting on the same transponder. Another Eutelsat satellite, Hotbird 8, provides capacity to Iranian state media channels, including English-language Press TV, which has offices in London. Iranian opposition supporters are accusing satellite companies of 'siding with dictators'. Eutelsat and GlobeCast, a France Télécom subsidiary which leases bandwidth from Eutelsat — and which made the decision to take down PTV — refuse to say publicly that the Iranian government is responsible for the jamming." (BBC News. "BBC joins international protests against Iranian TV interference," 1/14/10)

Response

Response: “…I shall deny any plan to further expand our activities in the country, where, thanks to Eutelsat, thousands of households receive Voice of America (farsi) and BBC (farsi) which we never stopped to broadcast in this country, despite the jamming campaign we have faced in 2012-2013…”

Huawei

Industry
Telecommunications
States
TX
Country
China
Contact Information
Sources

"China's Huawei Technologies acted to cover up its relationship with a firm that had tried to sell prohibited U.S. computer gear to Iran, after Reuters in 2013 reported deep links between the firm and the telecom-equipment giant's chief financial officer, newly obtained internal Huawei documents show. Huawei has long described the firm - Skycom Tech Co Ltd - as a separate local business partner in Iran. Now, documents obtained by Reuters show how the Chinese tech titan effectively controlled Skycom." (Reuters, "Exclusive: Huawei Hid Business Operation In Iran After Reuters Reported Links to CFO," 6/3/2020).

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"China's Huawei Technologies, which for years has denied violating American trade sanctions on Iran, produced internal company records in 2010 that show it was directly involved in sending prohibited U.S. computer equipment to Iran's largest mobile-phone operator. Two Huawei packing lists, dated December 2010, included computer equipment made by Hewlett-Packard Co and destined for the Iranian carrier, internal Huawei documents reviewed by Reuters show.Another Huawei document, dated two months later, stated: “Currently the equipment is delivered to Tehran, and waiting for the custom clearance.”" (Reuters, "Exclusive: Newly obtained documents show Huawei role in shipping prohibited U.S. gear to Iran," 3/2/2020).

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U.S. prosecutors on Thursday accused Huawei of stealing trade secrets and helping Iran track protesters in its latest indictment against the Chinese company, escalating the U.S. battle with the world's largest telecommunications equipment maker. In the indictment, which supersedes one unsealed last year in federal court in Brooklyn, New York, Huawei Technologies Co was charged with conspiring to steal trade secrets from six U.S. technology companies and to violate a racketeering law typically used to combat organized crime. (Reuters, "U.S. Accuses Huawei of Stealing Trade Secrets, Assisting Iran," 2/13/2020).

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"Some evidence used to charge Huawei Technologies Co. with bank fraud and violating U.S. sanctions on Iran was deemed so sensitive that the Chinese telecom giant's lawyers must now take unusual steps to review the information -- and even then, the company may never see it." (7/19/2019)

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"New details about the U.S. sanctions-busting case against Huawei Technologies Co. emerged in court filings in Canada, including about the Chinese telecom giant's alleged dealings in Iran, Syria and Sudan. The filings also detailed discussions Huawei held with Citigroup Inc. C +0.68% and BNP Paribas SA BNPQY +0.08% about its Iran business. The documents released Tuesday allege that Huawei also had discussions with two other banks, Citigroup and BNP, about its Iran business, following the publication by Reuters of articles in 2012 and 2013 alleging that Huawei sold U.S.-made computer equipment in Iran via Skycom in violation of U.S. sanctions. They allege that Huawei representatives—including the company's treasurer and Ms. Meng—told Citigroup that the company was in compliance with all sanctions, according to a 2017 email described in the filings. They also describe a 2014 BNP document in which Huawei described Skycom as “one of the business partners of Huawei.” HSBC and Standard Chartered have cut business ties with Huawei, deeming working with the company too risky, The Wall Street Journal reported in December. As of the end of last year, Citigroup continued to provide day-to-day banking services with Huawei outside the U.S., the Journal reported. A spokesman for Citigroup declined to comment. A Standard Chartered spokeswoman and a BNP spokeswoman declined to comment. An HSBC spokesman didn't immediately respond to a request for comment."(The Wall Street Journal, "Huawei Discussed Iran Business with Citi and BNP Paribas, Court Documents Show," 8/22/2019).

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"Huawei CFO Allegedly Said the Company Has an Office in Iran." (Bloomberg, "Huawei CFO Allegedly Said the Company Has an Office in Iran," 8/21/2019).

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"Among Asian businesses rethinking their dealings with Iran are banks, oil companies and technology giants including Huawei Technologies Co., Lenovo Group, LG Electronics Inc. and Samsung Electronics Co.... Also in March, Huawei, the world's second-largest smartphone maker, laid off most of its 250 staff in Iran, according to businessmen in Tehran. And Beijing-based Lenovo, the world's largest computer manufacturer, banned its Dubai-based distributors from selling to Iran after a warning from the U.S. Treasury Department, these people said." (Wall Street Journal, "Asian Companies Pull Back From Iran Amid U.S. Pressure," 4/24/2019).

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China's Huawei pleaded not guilty Thursday to all charges that it violated US sanctions on Iran and obstructed justice in the investigation that followed. (3/14/2019)

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The Justice Department unveiled sweeping charges on Monday against the Chinese telecom firm Huawei and its chief financial officer, Meng Wanzhou, outlining a decade-long attempt by the company to steal trade secrets, obstruct a criminal investigation and evade economic sanctions on Iran. (1/28/2019)

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"The local tech firm Media Pardazesh was announced as the official partner of Huawei for the year 2017 in Iran." (January 2017)

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"American officials are widening their investigation into whether Huawei broke American trade controls on Cuba, Iran, Sudan and Syria, according to an administrative subpoena sent to Huawei and reviewed by The New York Times. The previously unreported subpoena was issued in December by the United States Treasury Department's Office of Foreign Assets Control, which oversees compliance with a number of American sanctions programs." (April 2017)

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"Telecommunication Company of Iran (TCI) has launched a new project in collaboration with Chinese networking and telecommunications equipment and services company Huawei Technologies, to integrate and upgrade landline and mobile telecommunications network." (May 2017)

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"As one of the world's biggest sellers of smartphones and the back-end equipment that makes cellular networks run, Huawei Technologies has become one of the major symbols of China's global technology ambitions. But as it continues its rise, its business with some countries has fallen under growing scrutiny from investigators in the United States. American officials are widening their investigation into whether Huawei broke American trade controls on Cuba, Iran, Sudan and Syria, according to an administrative subpoena sent to Huawei and reviewed by The New York Times. The previously unreported subpoena was issued in December by the United States Treasury Department's Office of Foreign Assets Control, which oversees compliance with a number of American sanctions programs….It is not clear why the Treasury Department became involved with the Huawei investigation. But its subpoena suggests Huawei might also be suspected of violating American embargoes that broadly restrict the export of American goods to countries like Iran and Syria." (New York Times,"Huawei, Chinese Technology Giant, Is Focus of Widening U.S. Investigation," 4/26/17).

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"Amid the snake-infested marshlands on Iran's border with Iraq, the control room monitoring North Azadegan oil field is manned entirely by Chinese technicians. In central Tehran, hundreds of Chinese pour out at noon from the telecommunications company Huawei to its canteen. There are now so many Chinese expatriates here, some say they outnumber all other nationalities combined." (Bloomberg News,"Iran Is Stuck With China to Finance Its Oil Dreams," 10/13/2016).

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"Huawei, a major Chinese supplier of telecommunications equipment, is in hot water over potential sale of US technology to Iran, which Washington describes as “breach of American trade codes”. According to a subpoena sent to Huawei, the US Department of Commerce has demanded that the company turn over all information regarding the possible export of American tech to Cuba, Iran, North Korea, Sudan, and Syria, news weblog Android Authority reported recently." (Tasnim News Agency,"Huawei in Hot Water over Trade with Iran," 5/5/2016).

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"Huawei's business in Iran has fallen under American criticism in the past. In 2011, Huawei said in a statement that it would voluntarily restrict the growth of its business in Iran. A year later, six American lawmakers wrote a letter to the State Department, calling for an investigation into whether Huawei was violating sanctions on Iran. Recently, the Congressional Research Service released a report that said that companies like Huawei appeared to have fulfilled pledges not to sell technology for blocking telecommunications in 2014." (The New York Times,"US Subpoenas Huawei Over Its Dealings In Iran and North Korea," 6/2/2016).

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In August 2015 Huawei reported that Iran was its largest foreign market. (Special Report: Telecom Opportunities in Iran, 8/26/2015).

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"A major Iranian partner of Huawei Technologies offered to sell at least 1.3 million euros worth of embargoed Hewlett-Packard computer equipment to Iran's largest mobile-phone operator in late 2010, documents show. China's Huawei, the world's second largest telecommunications equipment maker, says neither it nor its partner, a private company registered in Hong Kong, ultimately provided the HP products to the telecom, Mobile Telecommunication Co of Iran, known as MCI...The proposed deal also raises new questions about Shenzhen-based Huawei, which recently was criticized by the U.S. House Intelligence Committee for failing to 'provide evidence to support its claims that it complies with all international sanctions or U.S. export laws.' At least 13 pages of the proposal to MCI, which involved expanding its subscriber billing system, were marked "Huawei confidential' and carried the company's logo, according to documents seen by Reuters. In a statement to Reuters, Huawei called it a 'bidding document' and said one of its 'major local partners,' Skycom Tech Co Ltd, had submitted it to MCI. The statement went on to say, 'Huawei's business in Iran is in full compliance with all applicable laws and regulations including those of the U.N., U.S. and E.U. This commitment has been carried out and followed strictly by our company. Further, we also require our partners to follow the same commitment and strictly abide by the relevant laws and regulations.' In October, Reuters reported that another Iranian partner of Huawei last year tried to sell embargoed American antenna equipment to Iran's second largest mobile operator, MTN Irancell, in a deal the buyer ultimately rejected. The U.S. antenna manufacturer, CommScope Inc, has an agreement with Huawei in which the Chinese firm can use its products in Huawei systems, according to a CommScope spokesman... Huawei has a similar partnership with HP... Huawei and its Iranian partner, Skycom, appear to have very close ties. An Iranian job recruitment site called Irantalent.com describes Skycom as 'a leading telecom solution provider' and goes on to list details that are identical to the way Huawei describes itself on its U.S. website: employee-owned, selling 'solutions' used by '45 of the world's top 50 telecom operators' and serving 'one-third of the world's population.' On LinkedIn.com, several telecom workers list having worked at 'Huawei-skycom' on their resumes... And an Iranian telecom manager who has visited Skycom's office in Tehran said, 'Everybody carries Huawei badges.'... 'In order to keep serving (MCI) with high quality, we provide this expansion proposal to support 40M subscribers,' the proposal states on a page marked 'HUAWEI Confidential.'... The documents seen by Reuters also include a portion of an equipment price list that carries Huawei's logo and are stamped 'SKYCOM IRAN OFFICE.'... Asked who had provided the existing HP equipment to MCI, Vic Guyang, a Huawei spokesman, said it wasn't Huawei. 'We would like to add that the existing hardware equipment belongs to the customer. Huawei does not have information on, or the authority to check the source of the customer's equipment.'" (Reuters, "Exclusive: Huawei partner offered embargoed HP gear to Iran," 12/30/2012)

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"Documents seen by Reuters show that a partner of China's Huawei Technologies Co Ltd offered to sell a Huawei-developed "Lawful Interception Solution" to MobinNet, Iran's first nationwide wireless broadband provider, just as MobinNet was preparing to launch in 2010. The system's capabilities included 'supporting the special requirements from security agencies to monitor in real time the communication traffic between subscribers,' according to a proposal by Huawei's Chinese partner seen by Reuters. Huawei also gave MobinNet a PowerPoint marketing presentation on a system that features 'deep packet inspection' - a powerful and potentially intrusive technology that can read and analyze 'packets' of data that travel across the Internet... Huawei says it has never sold either system to MobinNet and doesn't sell DPI equipment in Iran. But a person familiar with the matter says MobinNet did obtain a Huawei DPI system before it began operating in 2010. The person does not know how MobinNet acquired it or if it is being used. Asked to comment, Vic Guyang, a Huawei spokesman, said in a statement, 'We think it's not for us to confirm or deny what systems other companies have.'... In the case of Huawei, the documents seen by Reuters challenge statements made by the company that it doesn't sell any internet monitoring or filtering equipment... But the documents' descriptions of the Huawei systems pitched to MobinNet emphasize their filtering capabilities and ability to enable monitoring by security agencies. For example, a proposal made to MobinNet dated April 2009 offers what it calls a Huawei 'lawful interception' solution. The proposal was prepared by China's CMEC International Trading Co which states in the document that it had selected Huawei as its bid partner... Although Huawei maintains it doesn't sell any filtering technologies, its presentation given to MobinNet, marked confidential, repeatedly says its 'DPI Solution' features 'URL filtering,' which can be used to block specific websites... For example, the presentation states that a Chinese telecoms firm was using the Huawei system 'to settle the problem of youth getting secure and healthy access to websites, and the traffic should be controllable.'... In a series of emailed statements, Guyang, the Huawei spokesman, did not address Huawei's claim that it doesn't 'provide any services related to monitoring of filtering.'... He said Huawei 'did not sell products containing this function in Iran.' He also said the Huawei system described in the proposal - the Quidway SIG9800 - can't access 'content' in the telecommunications network. But a former Huawei employee who has worked in Iran said the SIG9800 can be used to reconstruct email messages provided they are not encrypted. 'This product has some special usage which Huawei customers do not like to share ... especially in Iran,' this person said... The proposal to MobinNet for the Huawei lawful-intercept system states that it includes technology from a German company called Utimaco Safeware AG. Utimaco says Huawei is one of its worldwide resellers but that neither MobinNet directly - nor Huawei on behalf of MobinNet - purchased or licensed its products. The proposal also states that Huawei equipment at another Iranian telecom had 'already successfully integrated with' an Utimaco product 'and accumulated rich integration experience, which will be shared.'" (Reuters, "Special Report: How foreign firms tried to sell spy gear to Iran," 12/4/2012)

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"A spokesman for Huawei Technologies Co Ltd, the Chinese telecom supplier, did not confirm or deny that his company is involved. In a statement, he said Huawei is 'limiting our business activities with existing (Iranian) customers.' But he added: 'For communications networks that have been delivered or are under delivery to customers, Huawei will continue to provide necessary services to ensure communications for Iran's citizens.'" (Reuters, "Ericsson helps Iran telecoms, letter reveals long-term deal," 11/20/2012)

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"Committee Chairman Mike Rogers, at a press conference to release the report, said companies that had used Huawei equipment had reported 'numerous allegations' of unexpected behavior, including routers supposedly sending large data packs to China late at night... If the committee's warnings about doing business with Huawei and ZTE prompt the Chinese government to get out of the business of cyber espionage, a growing U.S. concern, 'then that's great,' he added... Rogers, responding to a question at the press conference, stopped short of urging a U.S. boycott of mobile phones and other handheld devices made by Huawei and ZTE. The panel's warning pertains only to devices that involve processing of data on a large scale, he said, not Huawei- and ZTE-made mobile phones. Employee-owned Huawei is the world's second-biggest maker of routers, switches and other telecommunications equipment after Sweden's Ericsson. The panel said it had received credible allegations suggesting Huawei may be guilty of bribery and corruption, discriminatory behavior and copyright infringement... The committee's warning comes as Huawei weighs a possible initial public offering, sources said, as part of an effort to overcome suspicions that have all but blocked its U.S. efforts, including business tie-ins.Huawei denounced the findings, which it said 'employs many rumors and speculations to prove non-existent accusations.' 'We have to suspect that the only purpose of such a report is to impede competition and obstruct Chinese (telecom) companies from entering the U.S. market,' Huawei said... Huawei's U.S. sales totaled $1.3 billion last year, a small fraction of its worldwide sales of $32.4 billion. Handheld devices accounted for about three-fourths of Huawei sales in the United States last year, including via T-Mobile, AT&T and Sprint... Huawei and ZTE, which are both based in Shenzhen, China, are rapidly becoming 'dominant global players' in the telecommunications market, the report said... The committee's report criticized Huawei and ZTE for failing to answer questions or provide documentation regarding their business activities in Iran. In the case of ZTE, the report said the company 'consistently declined to comment on recent media reports that ZTE had sold export-controlled items to Iran.'... Huawei and ZTE may not be the only companies that present a risk to U.S. infrastructure, the committee's report said, but they are the two largest Chinese-founded, Chinese-owned companies seeking to market critical network equipment in the United States... The report underscores how little return Huawei in particular has gotten from its significant investment in lobbying in Washington after suffering a number of high-profile setbacks... In 2008, Huawei and private equity firm Bain Capital were forced to give up their bid for 3Com Corp after a U.S. panel rejected the deal because of national security concerns. Then in 2011, the company was forced to relinquish plans to buy some assets from U.S. server technology firm 3Leaf after the Committee on Foreign Investment mandated that Huawei divest certain parts of the deal." (Reuters, "U.S. lawmakers seek to block China Huawei, ZTE U.S. inroads," 10/8/2012)

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"The U.S. House of Representatives' Intelligence Committee said in a draft of a report to be released Monday that ZTE and fellow Chinese telecom equipment maker Huawei Technologies Co. Ltd should be shut out of the U.S. market because potential Chinese state influence on them poses a security threat. Both companies deny the allegation... The partnership expanded about five years ago when Cisco began viewing ZTE as a means to combat Huawei, the world's second-biggest maker of telecoms equipment by revenue after Sweden's Ericsson. Huawei had been beating out Cisco in emerging markets by offering significantly cheaper products... Part of Cisco's strategy, the former Cisco executive said, was 'we would license technology to ZTE and they would produce equipment locally, and we could therefore have a range of equipment in the marketplace that would be cost-competitive with Huawei.'" (Reuters, "Exclusive: Cisco cuts ties to China's ZTE after Iran probe," 10/8/2012)

"Huawei Technologies Co. confirmed it sold telecom equipment and a 'mobile news delivery platform' to MTN Irancell Telecommunications Services Co., Iran's second- largest mobile provider, while denying the gear is used for censorship... Huawei,China's largest maker of phone network equipment, doesn't provide 'any services relating to monitoring or filtering technologies and equipment anywhere in the world,' the Shenzhen, China-based company said in a e-mailed statement today... The company said it issued the statement on Iran in response to 'inaccurate and misleading claims' about its 'commercial activities' in Iran, without identifying the source of those claims. Both Bloomberg News and the Wall Street Journal published reports last month saying Iranian authorities use technology purchased from foreign companies to monitor dissidents... 'Huawei provides a mobile news delivery platform to MTN Irancell, but we have no involvement in any aspect of the content of the information that is provided on that platform,' the Huawei statement said. 'Most importantly, we have absolutely no technology that can be used for news censorship.'... Ross Gan, a spokesman for Huawei, had earlier told Bloomberg News that any equipment the company provides to customers is strictly for commercial use only." (Bloomberg, "Huawei Confirms MTN Irancell Sales, Denies Gear is Used for Censorship,"11/7/2011)

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“When Western companies pulled back from Iran after the government's bloody crackdown on its citizens two years ago, a Chinese telecom giant filled the vacuum. Huawei Technologies Co. now dominates Iran's government-controlled mobile-phone industry. In doing so, it plays a role in enabling Iran's state security network. Huawei recently signed a contract to install equipment for a system at Iran's largest mobile-phone operator that allows police to track people based on the locations of their cellphones, according to interviews with telecom employees both in Iran and abroad, and corporate bidding documents reviewed by The Wall Street Journal. It also has provided support for similar services at Iran's second-largest mobile-phone provider. Huawei notes that nearly all countries require police access to cell networks, including the U.S. Huawei's role in Iran demonstrates the ease with which countries can obtain foreign technology that can be used to stifle dissent through censorship or surveillance. Many of the technologies Huawei supports in Iran—such as location services—are available on Western networks as well. The difference is that, in the hands of repressive regimes, it can be a critical tool in helping to quash dissent… This year Huawei made a pitch to Iranian government officials to sell equipment for a mobile news service on Iran's second-largest mobile-phone operator, MTN Irancell. According to a person who attended the meeting, Huawei representatives emphasized that, being from China, they had expertise censoring the news. The company won the contract and the operator rolled out the service, according to this person. MTN Irancell made no reference to censorship in its announcement about its ‘mobile newspaper' service. But Iran routinely censors the Internet using sophisticated filtering technology. The Journal reported in June that Iran was planning to create its own domestic Internet to combat Western ideas, culture and influence. In winning Iranian contracts, Huawei has sometimes partnered with Zaeim Electronic Industries Co., an Iranian electronics firm whose website says its clients include the intelligence and defense ministries, as well as the country's elite special-forces unit, the Islamic Revolutionary Guards Corps. This month the U.S. accused a branch of the Revolutionary Guards of plotting to kill Saudi Arabia's ambassador to the U.S. Iran denies the claim. Huawei's chief spokesman, Ross Gan, said, ‘It is our corporate commitment to comply strictly with all U.N. economic sanctions, Chinese regulations and applicable national regulations on export control. We believe our business operations in Iran fully meet all of these relevant regulations.' William Plummer, Huawei's vice president of external affairs in Washington, said the company's location-based-service offerings comply with ‘global specifications' that require lawful-interception capabilities. ‘What we're doing in Iran is the same as what we're doing in any market,' he said. ‘Our goal is to enrich people's lives through communications.' Huawei has about 1,000 employees in Iran, according to people familiar with its Iran operations. In an interview in China, a Huawei executive played down the company's activities in Iran's mobile-phone industry, saying its technicians only service Huawei equipment, primarily routers. But a person familiar with Huawei's Mideast operations says the company's role is considerably greater, and includes a contract for ‘managed services'—overseeing parts of the network—at MTN Irancell, which is majority owned by the government. During 2009's demonstrations, this person said, Huawei carried out government orders on behalf of its client, MTN Irancell, that MTN and other carriers had received to suspend text messaging and block the Internet phone service, Skype, which is popular among dissidents. Huawei's Mr. Plummer disputed that the company blocked such services. Huawei, one of the world's top makers of telecom equipment, has been trying to expand in the U.S. It has met resistance because of concerns it could be tied to the Chinese government and military, which the company denies. Last month the U.S. Commerce Department barred Huawei from participating in the development of a national wireless emergency network for police, fire and medical personnel because of ‘national security concerns.' A Commerce Department official declined to elaborate. In February, Huawei withdrew its attempt to win U.S. approval for acquiring assets and server technology from 3Leaf Systems Inc. of California, citing opposition by the Committee on Foreign Investment in the United States. The panel reviews U.S. acquisitions by foreign companies that may have national-security implications. Last year, Sprint Nextel Corp. excluded Huawei from a multibillion-dollar contract because of national-security concerns in Washington, according to people familiar with the matter. Huawei has operated in Iran's telecommunications industry since 1999, according to China's embassy in Tehran. Prior to Iran's political unrest in 2009, Huawei was already a major supplier to Iran's mobile-phone networks, along with Telefon AB L.M. Ericsson and Nokia Siemens Networks, a joint venture between Nokia Corp. and Siemens AG, according to MTN Irancell documents… As NSN and Ericsson pulled back, Huawei's business grew. In August 2009, two months after mass protests began, the website of China's embassy in Tehran reprinted a local article under the headline, ‘Huawei Plans Takeover of Iran's Telecom Market.' The article said the company ‘has gained the trust and alliance of major governmental and private entities within a short period,' and that its clients included ‘military industries.' The same month the Chinese embassy posted the article, Creativity Software, a British company that specializes in ‘location-based services,' announced it had won a contract to supply a system to MTN Irancell. ‘Creativity Software has worked in partnership with Huawei, where they will provide first and second level support to the operator,' the company said… One of the ultimate winners: Huawei. According to a Huawei manager in Tehran, the company signed a contract this year to provide equipment for location-based services to MCCI in the south of Iran and is now ramping up hiring for the project. One local Iranian company Huawei has done considerable business with is Zaeim Electronic Industries. ‘Zaeim is the security and intelligence wing of every telecom bid,' said an engineer who worked on several projects with Zaeim inside the telecom ministry.” (The Wall Street Journal. “Chinese Tech Giant Aids Iran,” 10/27/11)

--

Nobel Peace Laureate and human rights activist Shrin Ebadi stated that “through use of software provided by Chinese companies, the Iranian government taps and listens to telephone conversations and monitors targeted electronic mail exchanges.” (International Campaign for Human Rights in Iran, “Shirin Ebadi: ‘Nokia Siemens' Action a Major Accomplishment for Iranians and for People Of The World,'” 10/6/10)

--

130 Iranian cities “are currently taking advantage of the optic fiber network implemented by Huawei. According to Huawei electrical industries, military industries and private ISPs are among other clients of this telecom giant.” (Iran Telecom Digest,Huawei Plans Takeover of Iran's Telecom Market,” 8/16/09)

--

Huawei signed a memorandum of understanding (MoU) with the Telecommunication Company of Iran (TCI) in 2008 to offer joint educational programs on wireline and wireless technologies at the Telecommunications College in Isfahan. (Telegeography, “Huawei offers telecoms training in Iran,” 4/22/08)

--

As of July 2010, Huawei had “sold roughly $800m of its products to US customers under Motorola's brand as part of a long-standing business relationship that recently went sour.” (Financial Times,"US divided on how to tackle Huawei," 7/29/10)

ZTE

Industry
Telecommunications
Symbol
SEHK: 0763
States
TX
Country
China
Contact Information
Sources

"A U.S. judge ruled that ZTE Corp.’s probation for violations of U.S. sanctions on Iran could end, freeing the Chinese technology company from some oversight following years of government supervision.

The decision by the federal judge in Texas effectively ends ZTE’s five-year term of supervision under a Dallas lawyer assigned to police the company’s adherence to the terms of its 2017 settlement agreement resolving the sanctions charges."

In his ruling, U.S. District Judge Ed Kinkeade said on Tuesday that ZTE’s probation could end, despite what he said was the company’s connection to a separate visa-fraud case. That case was brought by the Justice Department against a former ZTE researcher last year and doesn’t name ZTE as a defendant. In making his decision, Judge Kinkeade noted mitigating factors including that ZTE had made strides in improving its compliance practices.

But the judge in his order cast doubt on the extent of the company’s reforms, writing that the company’s “record of compliance can be summarized in one word—‘sometimes.’” 

The decision closes a chapter in a legal saga stemming from ZTE’s 2017 settlement, resolving allegations that it violated U.S. sanctions on Iran. In the settlement, ZTE agreed to pay $900 million and admitted to orchestrating a six-year conspiracy to acquire U.S. technology, send it to Iran and mask its involvement through a network of front companies.

In 2018, the Trump administration accused ZTE of violating the terms of that deal and as punishment placed the company on an export blacklist, to devastating effect. The Commerce Department ordered ZTE to pay an additional $1 billion and replace its senior leadership to get off the blacklist.(Wall Street Journal, "Judge Frees China’s ZTE From Some U.S. Oversight," 3/23/22)

--

"In a federal lawsuit filed Tuesday in New York, more than 50 Americans claim MTN and ZTE did business with the Islamic Revolutionary Guard Corps, even though they knew the transactions would help finance, arm and support the Iranian group’s terror campaign in neighboring Iraq. As a result, thousands of Americans were injured or killed between 2011 and 2016, according to the suit." (Bloomberg Quint, "MTN Group, ZTE Accused in U.S. Suit of Aiding Iraq Terror," 23/6/21)

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According to a settlement with the US treasury Department signed March 7, 2017, "Between October 2012 and November 2016, [ZTE] submitted information to OFAC (ENF 40001), the Department of Commerce’s Bureau of Industry and Security (BIS), the Department of Homeland Security, and the Department of Justice (collectively referred to hereafter as the “U.S. government agencies”) that identified transactions and conduct that appear to have violated the Regulations. From on or about January 2010 to on or about March 2016, Respondent engaged in: (i) the exportation, sale, or supply, directly or indirectly, from the United States of goods to Iran or the Government of Iran; (ii) the reexportation of U.S.-origin goods subject to the Export Administration Regulations (EAR) from a third-country with knowledge that the goods were intended specifically for Iran or the Government of Iran; and (iii) activity that evaded or avoided, attempted and/or conspired to violate, and/or caused violations of the prohibitions set forth in the ITSR. Specifically, Respondent appears to have engaged in at least 251 transactions in apparent violation of §§ 560.203, 560.204, and/or 560.205 of the ITSR. The total value of U.S.-origin goods in the 251 transactions constituting the apparent violations is $39,622,972...

[ZTE agreed to] pay or arrange for the payment to the U.S. Department of the Treasury the amount of $100,871,266."

--

"Chinese telecom equipment maker ZTE Corp on Wednesday pleaded guilty in U.S. federal court in Texas for conspiring to violate U.S. sanctions by illegally shipping U.S. goods and technology to Iran. The guilty plea was part of an agreement the company reached earlier this month with U.S. authorities that also called for nearly $900 million in fines and other penalties. U.S. District Judge Ed Kinkeade in Dallas accepted the company's plea to three charges: conspiring to export American-made items to Iran without a license, obstructing justice, and making a material false statement. Shenzhen-based ZTE has a U.S. subsidiary in Richardson, Texas. A five-year investigation found ZTE conspired to evade U.S. embargoes by buying U.S. components, incorporating them into ZTE equipment and illegally shipping them to Iran." (Reuters,  "China's ZTE Corp Pleads Guilty In U.S. Court In Sanctions Case," 3/28/2017).

--

"As one of China's few truly international technology companies, ZTE is often held up by Beijing as part of a new generation of firms that is able to compete beyond Chinese borders. On Tuesday, the United States government made an example of ZTE in a different way. As part of a settlement for breaking sanctions and selling electronics to Iran and North Korea, ZTE agreed to plead guilty and pay $1.19 billion in fines, the United States Department of Commerce said in an announcement. The penalty is the largest criminal fine in a United States sanctions case. The action is the latest in a series of skirmishes between the United States and China over technology policy. It also offered a chance for President Trump's young administration to make a statement about the seriousness of United States sanctions. In addition to ZTE, the Commerce Department is also investigating the company's larger Chinese rival, Huawei, for violating United States sanctions." (New York Times, "U.S. Fines ZTE of China $1.19 Billion for Breaching Sanctions," 3/7/2017). 

--

"Chinese telecom equipment maker ZTE Corp is nearing an agreement to plead guilty to U.S. criminal charges and pay hundreds of millions of dollars in penalties over allegations it violated U.S. laws that restrict sale of U.S. technology to Iran, a person familiar with the matter said. The company has not yet signed a deal with the U.S. Department of Commerce, the U.S. Department of Justice and the U.S. Department of Treasury, cautioned the person, who declined to speak on the record because the negotiations are not public. Others noted that with a new U.S. administration prompting changes in personnel at government departments, a final deal may be delayed or even scuttled. But ZTE is expected to plead guilty to conspiring to violate the International Emergency Economic Powers Act, among other charges, the source said, and pay penalties in the hundreds of millions." (Reuters, "China's ZTE Expected to Plead Guilty over Iran Sales," 3/2/2017).

--

"Chinese telecoms equipment group ZTE Corp said on Friday it has won a further reprieve to Feb. 27 on export restrictions that were imposed on the company by the U.S. government. In March, the U.S. Commerce Department hit ZTE with some of the toughest-ever U.S. export restrictions for allegedly breaking sanctions against Iran but has since issued temporary reprieves on the curbs. The latest reprieve comes after ZTE said this week it had appointed Matthew Bell as its new chief export compliance officer based in the United States. If imposed, a ban for U.S. component makers and software firms to do business with ZTE could cut off much of the Chinese network equipment and smartphone maker's supply chain." (Reuters, "U.S. extends ZTE reprieve on exports curbs until Feb. 27," 11/21/2016).

--

ZTE replaced the President and Chairman of the Board as well as two executive Vice Presidents whose names were implicated in the re-export of U.S. technology to Iran. (ZTE changes management after US probe, 4/5/2016).

--

"The U.S. Commerce Department agreed to “temporarily suspend the sanctions until June 30 in return for commitments by ZTE to disclose the full extent of its sales to Iran and North Korea and to undertake internal reforms to comply with US laws.” (ZTE to inform US about sales to Iran and North Korea, 3/22/2016).

--

"The U.S. Commerce Department imposed export restrictions against ZTE due to ZTE’s actions of “setting up several shell companies ‘to illicitly re-export controlled items to Iran in violation of U.S. export control laws.’” (U.S. punishes Chinese tech giant over alleged plan to dodge Iran sanctions, 3/7/2016).

--

"In March and April, Reuters reported that China's ZTE Corp, a Huawei competitor, had sold or agreed to sell millions of dollars worth of U.S. computer gear, including HP equipment, to Telecommunication Co of Iran, the country's largest telecommunications firm, and a unit of the consortium that controls TCI. The articles sparked investigations by the U.S. Commerce Department, the Justice Department and some of the U.S. tech companies. ZTE says it is cooperating with the federal probes." (Reuters, "Exclusive: Huawei partner offered embargoed HP gear to Iran," 12/30/12)

--

"Reuters reported in March that China's ZTE Corp had recently sold Iran's largest telecom firm, Telecommunication Co of Iran, a DPI-based surveillance system that was capable of monitoring landline, mobile and internet communications. ZTE later said it intends to reduce its business in Iran." (Reuters, "Special Report: How foreign firms tried to sell spy gear to Iran," 12/4/2012)

--

"Under-fire Chinese telecoms kit maker ZTE has warned it will report a loss of up to 1.75bn yuan (£174m) for the first nine months of the year, blaming a slowing global economy and the Iranian market, where US investigators are probing its activities... In a separate filing to the Hong Kong Stock Exchange, ZTE added that its 'operating results were adversely affected by the Iranian market'. Those operations remain contentious in other ways, as Washington is still investigating whether ZTE broke embargoes by selling US products on a 900-page ‘packing list’ to Iran and then deliberately tried to cover its tracks when exposed by media reports. ZTE claims that it 'always respects and complies with international and local laws wherever it operates' and that – like Shenzhen rival Huawei – it is winding down its business in Iran... Another barrier to its attempts to move back into profitability will be last week's report by a House of Representatives Intelligence Committee which concluded that ZTE and Huawei's network infrastructure tech poses a national security risk to US companies. Apart from seemingly blocking off this revenue stream until further notice, the high profile report may also interfere with ZTE’s attempts to build its handset brand in the massive North American market." (The Register, "Iran blamed for ZTE's 260 PER CENT profit slump," 10/15/2012)

--

"The report follows an 11-month investigation by the committee into Huawei Technologies Co Ltd and its smaller rival, ZTE Corp. The companies have been fighting an uphill battle to overcome U.S. lawmakers' suspicions and expand in the United States after becoming key players in the worldwide market...  The committee recommended that the Committee on Foreign Investment in the United States, an inter-agency group that evaluates the national security risks of foreign investments, should block any deals involving Huawei or ZTE... Rogers, responding to a question at the press conference, stopped short of urging a U.S. boycott of mobile phones and other handheld devices made by Huawei and ZTE... The panel's warning pertains only to devices that involve processing of data on a large scale, he said, not Huawei- and ZTE-made mobile phones. Employee-owned Huawei is the world's second-biggest maker of routers, switches and other telecommunications equipment after Sweden's Ericsson. ZTE ranks fifth... ZTE, in a newly released copy of a letter to the committee, said it 'profoundly disagrees' with allegations that it is directed or controlled by the Chinese government. 'ZTE should not be a focus of this investigation to the exclusion of the much larger Western vendors,' it said... ZTE's Hong Kong-listed shares fell as much as 3.4 percent early on Monday... ZTE's U.S. telecom infrastructure equipment sales last year were less than $30 million. In contrast, two of the larger Western vendors alone had combined U.S. sales that topped $14 billion, ZTE has said, alluding to Espoo, Finland-based Nokia Siemens Networks and Paris-based Alcatel Lucent." (Reuters, "U.S. lawmakers seek to block China Huawei, ZTE U.S. inroads," 10/8/2012)

--

"Cisco Systems Inc. has ended a longstanding sales partnership with ZTE Corp after an internal investigation into allegations that the Chinese telecommunications equipment maker sold Cisco networking gear to Iran. Cisco's probe followed stories by Reuters in March and April that documented how Shenzhen, China-based ZTE had sold banned computer equipment from Cisco and other U.S. companies to Iran's largest telecom firm. ZTE also agreed last year to ship millions of dollars worth of additional U.S. tech products, including Cisco switches, to a unit of the consortium that controls the telecom firm... ZTE's general counsel at its Texas-based subsidiary alleged that the parent company plotted a cover-up, including possibly shredding documents, after the first Reuters story broke... The U.S. House of Representatives' Intelligence Committee said in a draft of a report to be released Monday that ZTE and fellow Chinese telecom equipment maker Huawei Technologies Co. Ltd should be shut out of the U.S. market because potential Chinese state influence on them poses a security threat. Both companies deny the allegation. David Dai Shu, a ZTE spokesman, said of Cisco's decision to cut ties: 'ZTE is highly concerned with the matter and is communicating with Cisco. At the same time, ZTE is actively cooperating with the U.S. government about the probe to Iran. We believe it will be properly addressed.' In a recent interview, John Chambers, Cisco's chief executive, declined to discuss the results of the company's investigation of ZTE's sales to Iran... Cisco and ZTE partnered for the past seven years in a relationship that was at times rocky, according to a former Cisco executive with knowledge of the matter. ZTE described the initial partnership as an effort to develop business opportunities in China and Asia Pacific, excluding Japan. The partnership expanded about five years ago when Cisco began viewing ZTE as a means to combat Huawei, the world's second-biggest maker of telecoms equipment by revenue after Sweden's Ericsson. Huawei had been beating out Cisco in emerging markets by offering significantly cheaper products. Part of Cisco's strategy, the former Cisco executive said, was 'we would license technology to ZTE and they would produce equipment locally, and we could therefore have a range of equipment in the marketplace that would be cost-competitive with Huawei.' ZTE was 'reasonably successful' in reselling Cisco products inside China, where it was well entrenched in the marketplace, the former executive said. But the plan to develop projects jointly, and offer them in markets such as Africa, floundered... 'ZTE wanted to bring things to market in the U.S. with our help. We really didn't want them to do that,' the former executive said. By 2010, the partnership had basically ended, although ZTE continued as an authorized distributor and reseller of Cisco products, according to a person familiar with the matter. The ZTE spokesman did not comment on its relationship with Cisco. ZTE has continued to do business in Iran where American-made tech products long have been subject to U.S. sanctions. A parts list dated July 2011 for an equipment contract between ZTE and Telecommunication Co of Iran (TCI) included several Cisco switches. ZTE later agreed to sell five Cisco switches to a unit of the consortium that controls TCI, according to documents reviewed by Reuters. After the Reuters report in March, ZTE, China's second largest telecom equipment maker, said it would 'curtail' its business with Iran. Ashley Kyle Yablon, ZTE's Texas-based general counsel, gave the FBI an affidavit in May in which he alleged the company had plotted to cover up the Iran sales. The affidavit became public in July. ZTE recently placed Yablon on administrative leave, according to his attorney, Tom Mills." (Reuters, "Exclusive: Cisco cuts ties to China's ZTE after Iran probe," 10/8/2012)

--

"Seventeen U.S. lawmakers have called on Treasury Secretary Timothy Geithner to investigate ZTE Corp, the Chinese telecommunications equipment maker, over allegations it sold a surveillance system and banned U.S. computer equipment to Iran.

In a letter sent to Geithner, the members of the House of Representatives - 16 Republicans and one Democrat - wrote, 'We urge your department and other concerned agencies to examine the nexus between ZTE and Iran and, if warranted, take action to prevent companies that assist the repressive policies of the Iranian regime from expanding in the United States.'

The letter said ZTE 'appears to have violated U.S. sanctions on Iran' by selling a surveillance system to the Telecommunication Co. of Iran. The letter added that it 'appears that ZTE conspired to violate additional export control laws' by agreeing to sell millions of dollars worth of U.S. computer equipment to the unit of the consortium that controls TCI." (Reuters, "Treasury Secretary urged to investigate ZTE," 7/27/12)

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"The FBI has opened a criminal investigation into ZTE Corp's sale of banned U.S. computer equipment to Iran, a website reported, as the Chinese telecoms gear maker warned its first half net profit could fall as much as 80 percent…According to the affidavit, Yablon told two FBI agents that ZTE officials had discussed shredding documents, altering the packing list and denying it was genuine in an effort to subvert a Department of Commerce investigation into ZTE's sales of U.S. equipment to Iran." (Reuters, "FBI probes China's ZTE over Iran tech deals," 7/13/12)

--

 

"Reuters reported in March and April that ZTE Corp, a Chinese telecom-equipment maker, had sold or agreed to ship millions of dollars worth of U.S. hardware and software to Iran since 2010 despite a longtime U.S. sales ban on tech products to Iran." (Reuters, "Iranian cell-phone carrier obtained banned U.S. tech," 6/4/2012)

--

"The Department of Commerce is investigating Chinese telecommunications equipment maker ZTE Corp for allegedly selling embargoed U.S. computer products to Iran. The investigation was launched following reports by Reuters in March and April that ZTE had signed contracts to ship millions of dollars worth of hardware and software from some of America's best-known tech firms to Telecommunication Co of Iran (TCI) and a unit of the consortium that controls it along with the Iranian regime. TCI is Iran's largest telecom carrier. 'We've been pursuing it very aggressively,' said a Commerce Department official. Investigators already have met with representatives of ZTE. A spokesman for ZTE, based in Shenzhen, China, declined to comment... According to people familiar with the matter, some of the U.S. companies have received subpoenas requesting information about their dealings with ZTE and a Chinese trading company, Beijing 8-Star International Co, which also was a party to the Iranian contracts. According to contract documents, Beijing 8-Star was responsible for providing certain 'relevant third-party equipments.' One U.S. company received a subpoena in March requesting documents relating to 'Sales to ZTE Corporation (any and all locations and offices to include but not limited to: U.S. locations, Hong Kong, China and Iran) and/or Beijing 8-Star International Company in Hong Kong or China,' according to a person familiar with the matter... ZTE could face a variety of potential penalties, including fines of double the value of the U.S. products, according to the Commerce Department official... The ZTE investigation is expected to take many months, the official said. Reuters reported on March 22 that ZTE had sold numerous American hardware and software products as part of a 98.6 million euro ($123.4 million) contract with TCI in December 2010. The products were listed in a ZTE parts list dated July 2011. They included HP computer parts and printers, Microsoft Windows software, Cisco switches, Dell flat-screen monitors, Oracle database products and Symantec Corp anti-virus software. The day after the article was published, a ZTE spokesman said the company would "curtail" its business in Iran. The company later issued a statement saying: 'ZTE no longer seeks new customers in Iran and limits business activities with existing customers.'... Reuters also reported on April 10 that in June 2011, ZTE had agreed to ship millions of dollars worth of additional U.S. products, including IBM servers, to Aryacell, a unit of the consortium that controls TCI. The U.S. products comprised the bulk of an 8 million euro ($10 million) equipment-supply contract. In response, a ZTE spokesman said the company had decided 'to abandon' the agreement after 'we realized that the contract involved some U.S. embargoed products.' Some of the U.S. companies have had partnerships with ZTE." (Reuters, "Exclusive: U.S. probes China's ZTE over tech sales to Iran," 5/25/2012)

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"China's ZTE Corp, which recently sold Iran's largest telecommunications firm a powerful surveillance system, later agreed to ship to Iran millions of dollars worth of embargoed U.S. computer equipment, documents show. The American components were part of an 8 million euro ($10.5 million) equipment-supply contract, dated June 30, 2011, between ZTE, a Chinese trading firm and a unit of the consortium that controls the Iranian telecom, Telecommunication Co. of Iran, according to documents reviewed by Reuters. ZTE is China's second-largest telecommunications equipment maker... The parts were intended for business-support services, including a ZTE billing system. A spokesman for ZTE said last week in an email that 'as far as we know' the company had not yet shipped any of the products. Asked if ZTE intended to do so, he emailed a new statement Monday that said: 'We have no intention to implement this contract or ship the products.' He also said ZTE decided 'to abandon' the agreement after 'we realized that the contract involved some U.S. embargoed products.' The contract had made clear the American provenance of the goods: Its accompanying parts list, signed by ZTE, lists more than 20 different computer products from U.S. companies. Washington has banned the sale of such goods to Iran for years... The article reported that despite a longtime U.S. sales ban on tech products to Iran, ZTE's 'Packing List' for the contract, dated July 24, 2011, also included numerous American hardware and software products, although they were not part of the surveillance system... The day after the article was published, a ZTE spokesman said the company would "curtail" its business in Iran. The company later issued a statement saying, 'ZTE no longer seeks new customers in Iran and limits business activities with existing customers.'... It is not clear how ZTE will get out of the contract. According to the terms, the contract only can be terminated if Aryacell breaches it, becomes bankrupt or can't pay its debts." (Reuters, "China's ZTE planned U.S. computer sale to Iran," 4/10/2012)

 

--

"While Israeli couple Ronny Edri and Michal Tamir made global headlines this week with their 'Israel loves Iran' Facebook campaign, Iranians face increasingly aggressive crackdowns on internet use as the Islamic Republic ramps up its attempts to control information and quash dissidents. This month, watchdog group Reporters Without Borders (RWB) named Iran as the '2012 enemy of the internet,' and US President Barack Obama accused the Islamic Republic of creating an 'electronic curtain' cutting off Iranians from the outside world... US-based non-profit advocacy group United Against Nuclear Iran (UANI) says Iran also conducts surveillance against web surfers with sophisticated technologies purchased from international companies. Earlier this week, UANI slammed Chinese telecom giant ZTE for selling an advanced surveillance system to Tehran, which it says enables the Islamic Republic to monitor citizens' voice and text messaging as well as internet communications. UANI spokesman Nathan Carleton told The Jerusalem Post that companies like ZTE risk contributing to human rights violations in Iran. 'Any responsible company should pull out of Iran and eliminate the possibility of the regime misusing its technology to track, monitor, and oppress dissidents,' he said." (JPost, "Inside Man: Behind Tehran's 'electronic curtain," 3/29/12) 

--

"Feyzi said sanctions haven’t stopped IT providers from selling to Iran as contracts for equipment such as switches and transmission and radio systems show. Companies including Siemens, Nokia , Eriksson, Alcatel-Lucent, Cisco Systems, Telaps, NEC, ZTE, Huawei Technologies Co and Wuhan Research Institute have all supplied the Islamic republic. Feyzi said TCI was focusing on buying equipment and technology that isn’t considered dual-use or 'problematic' due to the sanctions." (Gulf Times. "Iran telecom firm to offer '50% stake by March'," 1/12/09)

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"Shenzen-headquartered telecom equipment manufacturer, ZTE Corporation, exhibited its technologies and solutions in the fields of wireless networking, optimization of networks, broadband data networks, multimedia communications, optical transmission and switching systems at the Iran Telecom-infotech 2001 exhibition held on Oct 1-4 in Tehran, Iran. ZTE considers Iran to be one of its most important export markets. The Company set up a branch office in Tehran in the year 2000." (World IT Report. "China's ZTE seeks more cooperation opportunities in Iran," 4/8/03)

--

"ZTE Corp, China's second-largest telecommunications equipment maker, said it will 'curtail' its business in Iran following a report that it had sold Iran's largest telecom firm a powerful surveillance system capable of monitoring telephone and Internet communications.Reuters reported Thursday that Shenzhen-based ZTE had signed a 98.6 million euro ($130.6 million) contract with the Telecommunication Co of Iran in December 2010 that included the surveillance system... Shu said ZTE had decided 'some time ago' to 'shrink' its business in Iran, although he said the company had not yet decided on the details. 'It's still being discussed,' he said. He also said he did not know the reason for the decision." (Reuters.  "China's ZTE to "curtail" business in Iran,"  3/23/12)

MCI Inc.

Industry
Telecommunications
Value of USG Contracts
429
Value of USG Contract Source
http://www.usaspending.gov/explore?fromfiscal=yes&fiscal_year=2002&contractorid=2248265&fiscal_year=&tab=By+Prime+Awardee&fromfiscal=yes&carryfilters=on&Submit=Go
Symbol
NYSE:VZ
Country
USA
Sources

MCI is a subsidiary of Verizon Communications. MCI Inc. was formed as a result of the merger between WorldCom and MCI Communications.

--

"This license authorized WorldCom to strike a deal by which the state-owned Telecommunications Company of Iran would pay the American telecommunications company a rental fee in return for a direct link to WorldCom's United States Internet backbone. OFAC said the application was approved because it would have provided increased and more consistent Internet access for Iranians, and it is the policy of the United States to encourage such access." (New York Times, "Licenses Granted to U.S. Companies Run the Gamut," 12/24/10)

 

Intelsat

Industry
Telecommunications
Symbol
NYSE: I
States
DC
GA
Country
Luxembourg
Sources

"The U.S. gave European satellite companies Intelsat SA and Eutelsat Communications SA another six months to win back Iran's business lost after lawmakers barred them from transmitting Iranian programming... The companies say they have had to push hard, and have regained some of the business they lost. Both companies said the amount of revenue lost was immaterial. 'Our business level there has not returned to its previous state,' said Dianne VanBeber, an Intelsat spokeswoman."  (The Wall Street Journal, "Intelsat, Eutelsat Granted New U.S. Waivers," 8/28/2014)

--

"The International Telecommunications Satellite Organization (Intelsat) has taken a number of Iranian channels off the air in Europe based on an order by the U.S., Press TV reported." (Trend, "Intelsat takes Iranian channels off air," 10/22/2012) 

--

"Other Western satellite companies, including Intelsat SA and Telesat Holdings Inc., still carry IRIB's channels." (The Wall Street Journal, "A Top Satellite Provider Cuts Off Iran State Broadcaster," 10/15/2012) 

--

"IRIB broadcasts not only in Persian but in Arabic—on its Al Alam channel—and in English on its Press TV. Besides Eutelsat, companies it uses include Intelsat SA, Telesat Holdings Inc. and AsiaSat, a Hong Kong-based operator in which General Electric Co. has a stake... Iran has little reason to jam Intelsat and AsiaSat, which don't carry BBC Persian or other typically targeted channels, and those companies said they weren't aware of their satellites being jammed... Intelsat, based in Luxembourg but with main offices in Washington, is able to do business with Iran despite the U.S. embargo because of a license from the Treasury's Office of Foreign Assets Control. Intelsat was once an intergovernmental organization and was obliged to provide service to the group's former members, including Iran, when it changed to a private company a decade ago. 'Satellite operators like Intelsat do not censor the content that is broadcast over their satellites,' said Dianne Van Beber, a vice president and spokeswoman." (The Wall Street Journal, "In Skies Over Iran, a Battle for Control of Satellite TV," 12/27/2011)

--

"European satellite companies like Eutelsat, Intelsat and Arqiva provide extensive services to the Iranian state-owned Islamic Republic of Iran Broadcasting (IRIB), including for domestic Iranian radio and television broadcasts, and for Iran's growing list of foreign-language channels, like the English-language PressTV and the Arabic Al-Alam."(The Wall Street Journal, "Broadcasting Tehran's Repression," 12/9/2011)

 --

"This license application is so heavily redacted by OFAC that one cannot say what type of activity it authorized. In records released by the State Department, however, it says that the license would allow Intelsat to respond to a request for a proposal for the provision of public international telecommunications service to Iran, and that granting such a license would be consistent with the United States policy goal of promoting the free flow of information to and from Iran." (New York Times, "Licenses Granted to U.S. Companies Run the Gamut," 12/24/10)

Skype

Industry
Telecommunications
Country
Luxembourg
Sources

"Luxembourg-based software company Skype, which is in registration for an initial public offering, has answered a subpoena from the Treasury Department seeking information about transactions involving Iran.

Silver Lake Partners, the tech-centric private equity firm that bought the majority share in Skype in 2009, was served an administrative subpoena in July, Skype said in a Nov. 2 filing with the Securities and Exchange commission. The little-noticed subpoena was first disclosed by the company in its August registration statement.

The Treasury’s Office of Foreign Assets Control, which enforces U.S. sanctions, requested information on transactions since 2005, including those related to call termination fees to an unnamed Iranian telecommunications provider, the company said." (Wall Street Journal, "Skype Answers Subpoena On Sanctions Investigation," 11/3/2010)

CommScope

Industry
Telecommunications
Value of USG Contracts
10
Value of USG Contract Source
http://usaspending.gov/explore?fromfiscal=yes&tab=By+Prime+Awardee&fiscal_year=2004&contractorid=99322&fiscal_year=&tab=By+Prime+Awardee&fromfiscal=yes&carryfilters=on&Submit=Go
Symbol
NASDAQ: COMM
States
NC
Country
USA
Sources

A CommScope representative attended the International Conference on Robotics and Mechatronics (“ICROM”), which will took place at Sharif University of Technology in Tehran, Iran on November 20-21, 2019

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According to its website, Iranian company Fatehin Sanat supplies various products made by Commscope.

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In a 2010 Correspondence with the SEC, CommScope, Inc. reports that its company indirectly sells its products to customers in Iran:

“With regard to the number or quantity of Company products that have been sold or distributed by the OEM into Iran, Sudan, Cuba, or Syria (hereinafter the “Sanctioned Countries”), the Company does not have or typically obtain data from customers that would allow it to provide such information. The Company only became aware of reexports by the OEM to the referenced countries when a foreign subsidiary acquired OEM shipment information for a portion of 2008 in connection with a logistics issue. This information, which has not been verified by the Company, suggested that, collectively, about 5 percent of the OEM’s reexports of Company products (the vast majority of which were not U.S. origin) were to the Sanctioned Countries.

 Because, with the exception of isolated sales in support of United Nations operations in Sudan, the Company does not make sales to customers when it knows that Company product is intended specifically for end use in Iran, Sudan, Cuba, or Syria, the Company lacks sufficient information to accurately state the actual revenue that may be attributable to sales of Company products in the these countries by its international customers.” (SEC, 2010 Correspondence, 6/14/2010)

 

NEC Corporation

Industry
Electronics, Technology, Telecommunications
Value of USG Contracts
5
Value of USG Contract Source
http://usaspending.gov/explore?fromfiscal=yes&fiscal_year=2003&contractorid=299512&fiscal_year=&tab=By+Prime+Awardee&fromfiscal=yes&carryfilters=on&Submit=Go%20http://usaspending.gov/explore?fromfiscal=yes&fiscal_year=2009&contractorid=571181&fiscal_year=&tab=By+Prime+Awardee&fromfiscal=yes&carryfilters=on&Submit=Go
Symbol
TYO:6701
Country
Japan
Contact Information
Sources

"As one of the companies having the most patent applications worldwide, NEC provides solutions in key areas: computers, networks and electronic equipment" (Company website).

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NEC Semiconductors ranks among the top semiconductor sales leaders worldwide in 2009. iSuppli Corporation supplied rankings for 2009 

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NEC lists a Tehran branch on its website. (Company website)
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VAFA International Trading, an international trading company based in Tehran, features a variety of NEC products on its website, including LCD monitors, plasma displays, medical displays, and projectors. (Iranian company website)

 

 

 

Nokia Siemens Networks

Industry
Telecommunications
Value of USG Contracts
21
Value of USG Contract Source
http://www.nytimes.com/interactive/2010/03/06/world/iran-sanctions.html
Symbol
NYSE:NOK
States
GA
TX
Country
Finland
Sources

Nokia Market Head for Middle East and Africa, Amr K. El-Leithy, identified Iran as one of the Middle Eastern markets that Nokia was looking to develop. (The Daily News, “Nokia focuses on LTE, development of government services to increase market share: Nokia Market Head for Middle East and Africa,” 4/5/2016).

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Senior Nokia managers arrived in Iran with the Finish Minister for Foreign Trade and Development to hold talks with senior Iranian officials about trade between the two nations. (Ministry of Foreign Affairs of Finland, “Minister for Foreign Trade and Development of Finland, Ms Lenita Toivakka, leads a Team Finland visit to Iran,” 12/3/2015).

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Board control is held by Nokia, with Nokia President and CEO Olli-Pekka Kallasvuo serving as company Chairman.

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"The executive board of network-equipment vendor Nokia Siemens Networks said it has decided not to take on any new business in Iran and will gradually reduce its existing commitments, effective Jan. 1, 2012. In a letter to its staff in Iran, the Helsinki-based joint venture cited toughening global sanctions against Iran that 'make it almost impossible for Nokia Siemens Networks to do business with Iranian customers.' The Wall Street Journal obtained a copy of the letter... The action by the company—a joint venture between Nokia Corp. and Siemens AG—ramps up economic pressure on Iran, which has a growing mobile-phone industry that the government controls... An article on page one of the Journal in October documented the growth in Huawei's business in Iran after Western companies, including NSN, pulled back following the government's bloody crackdown on its citizens two years ago... In its letter, NSN said there were "serious concerns" over whether the shareholding structures of some of its Iranian customers meant the venture was prohibited from doing business with them under international sanctions. NSN said it was monitoring the situation 'continuously.'... It also said that sanctions on financial institutions have made it difficult for NSN to transfer money out of Iran for about a year... NSN, which has about 400 employees in Iran, announced last month it would cut nearly a quarter of its global work force of 74,000 in a broad restructuring to focus on mobile broadband... The venture came under fire in 2009 after Siemens disclosed that NSN had provided Iran's largest telecom, government-owned Telecommunications Co. of Iran, with a monitoring center capable of intercepting and recording voice calls on its mobile networks... NSN had also provided network equipment to TCI's mobile-phone operator, as well as another operator, MTN Irancell, that permitted interception... NSN sold its global monitoring-center business in March 2009. The company also established a human-rights policy to reduce the potential for abuse of its products." (The Wall Street Journal, "Nokia Siemens Venture to Reduce Its Business in Iran," 12/14/2011)

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"An imprisoned Iranian activist [Isa Saharkhiz] is suing Nokia Siemens Networks (NSN) over allegations that the telecommunications company provided the Islamic regime with a monitoring system it used to spy on the opposition Green movement.... Saharkhiz, who is still in detention, discovered during his interrogation in Tehran's Evin prison that his whereabouts were revealed when security officials listened in to his mobile phone conversations using technology NSN allegedly sold to Iran, his son Mehdi told the Guardian." (The Guardian, "Iranain activist sues telecom firm over 'spying system,'" 8/24/2010)

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As of June 29, 2010, USASpending.gov now lists that Nokia Siemens has received nearly $26.7 million from the U.S. government, with the overwhelming majority of those funds ($23 million) coming from the Department of Defense (USASpending.gov, 6/29/10).

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"Nokia Siemens also continues to provide services to two cellphone companies in Iran. The company spokesman also said that “Forty million people in Iran have gotten cellphones over the last couple of years.” Between 2000 and March 2010, Nokia Siemens received $21.5 million in U.S. federal funds (The New York Times, “Profiting from Iran, and the U.S.”, 3/6/10).

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On June 22, 2009, amidst the post-election unrest in Iran, The Wall Street Journal reported that in 2008, the Nokia Siemens Networks had sold equipment to Iran that contributed to the Iranian regime’s ability to monitor and censor Internet, voice and mobile communications.

The “monitoring center [Lawful Interception Gateway (LIG)],” sold to the government’s telecommunications monopoly TCI (Telecommunications Company of Iran), intrinsically provides the regime “the capability to intercept any communications that runs over them.” The equipment also has lawful uses, such as “intercepting data for the purposes of combating terrorism, child pornography, drug trafficking and other criminal activities carried out online.”

Reportedly, the Iranian government began to make extensive use of this technology during the post-election unrest. The regime likely used the equipment to perform “deep packet inspections,” allowing the government to monitor online communications such emails, Internet phone calls, Facebook, Twitter, Instant Messaging, etc (The Wall Street Journal, “Iran's Web Spying Aided By Western Technology,” 6/22/09).

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Nokia Siemens Networks (NSN) is a multinational telecommunications, hardware, software, and services company working with communication system providers in 150 countries (Company Website. “About Us”).

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Nokia and Siemens created the jointly-owned subsidiary in 2006, merging their respective network infrastructure divisions. The 50/50 joint venture is incorporated in the Netherlands and headquartered in Finland (Ovum, “Siemens and Nokia to merge network infrastructure divisions,” 6/19/2006). 

Cisco Systems, Inc.

Industry
Electronics, Telecommunications
Value of USG Contracts
62
Value of USG Contract Source
http://usaspending.gov/explore?fromfiscal=yes&tab=By+Prime+Awardee&fiscal_year=2007&contractorid=202128&fiscal_year=&tab=By+Prime+Awardee&fromfiscal=yes&carryfilters=on&Submit=Go
Symbol
NASDAQ: CSCO
States
CA
Country
USA
Contact Information
Sources

According to Cisco’s website, “Cisco products may not be exported or re-exported to embargoed destinations: Cuba, Iran, [etc.]”

--

The CISCO logo appears on the website of the Iranian IT security and surveillance firm, Hoortash Ryan Aflak (“Hoortash” a.k.a. “Hortash”).

--

According to the Iranian company Fatehin Sanat's website, Fatehin Sanat supplies various products made by Cisco. 

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According to its website, Cisco is "the worldwide leader in networking that transforms how people connect, communicate and collaborate.” (Company Website)

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"However the repercussion are already being felt, with Cisco reportedly ending all sales agreements with the Chinese firm." (The Register, "Iran blamed for ZTE's 260 PER CENT profit slump," 10/15/2012)

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"<>Cisco Systems Inc. has ended a longstanding sales partnership with ZTE Corp after an internal investigation into allegations that the Chinese telecommunications equipment maker sold Cisco networking gear to Iran.<> Cisco's probe followed stories by Reuters in March and April that documented how Shenzhen, China-based ZTE had sold banned computer equipment from Cisco and other U.S. companies to Iran's largest telecom firm. ZTE also agreed last year to ship millions of dollars worth of additional U.S. tech products, including Cisco switches, to a unit of the consortium that controls the telecom firm... <>David Dai Shu, a ZTE spokesman, said of Cisco's decision to cut ties: 'ZTE is highly concerned with the matter and is communicating with Cisco. At the same time, ZTE is actively cooperating with the U.S. government about the probe to Iran. We believe it will be properly addressed.'... <>In a recent interview, John Chambers, Cisco's chief executive, declined to discuss the results of the company's investigation of ZTE's sales to Iran. But he said Cisco doesn't "tolerate any direct or indirect" sales of its equipment to embargoed countries such as Iran. 'And when that occurs, we step up and deal with it very firmly. So I think you can assume that you will not see that happen again.' <>Cisco and ZTE partnered for the past seven years in a relationship that was at times rocky, according to a former Cisco executive with knowledge of the matter... The partnership expanded about five years ago when Cisco began viewing ZTE as a means to combat Huawei, the world's second-biggest maker of telecoms equipment by revenue after Sweden's Ericsson. Huawei had been beating out Cisco in emerging markets by offering significantly cheaper products. Part of Cisco's strategy, the former Cisco executive said, was 'we would license technology to ZTE and they would produce equipment locally, and we could therefore have a range of equipment in the marketplace that would be cost-competitive with Huawei.' ZTE was 'reasonably successful' in reselling Cisco products inside China, where it was well entrenched in the marketplace, the former executive said. But the plan to develop projects jointly, and offer them in markets such as Africa, floundered...  <>By 2010, the partnership had basically ended, although ZTE continued as an authorized distributor and reseller of Cisco products, according to a person familiar with the matter. The ZTE spokesman did not comment on its relationship with Cisco. <>ZTE has continued to do business in Iran where American-made tech products long have been subject to U.S. sanctions. A parts list dated July 2011 for an equipment contract between ZTE and Telecommunication Co of Iran (TCI) included several Cisco switches. ZTE later agreed to sell five Cisco switches to a unit of the consortium that controls TCI, according to documents reviewed by Reuters." (Reuters, "Exclusive: Cisco cuts ties to China's ZTE after Iran probe," 10/8/2012)

 

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Business Monitor International states, “Cisco Systems Inc (USA) designs, develops, manufactures and provides technical support for high performance computer networking products and systems. The company specialises in end-to-end networking solutions and is aimed at three key markets - enterprises, service providers and commercial.” (Business Monitor International)

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"<>MTN Irancell, a joint venture between MTN Group Ltd of South Africa and an Iranian government-controlled consortium, sourced equipment from Sun Microsystems Inc, Hewlett Packard Co and Cisco Systems Inc, the documents and interviews show. MTN owns 49% of the joint venture but provided the initial funding... <>The document also includes lists of network equipment, including Cisco routers, Sun servers and products from HP... <>Two companies - Oracle Corp, which owns Sun, and Cisco - said they were investigating the matter... <>A spokesman for Cisco said: 'Cisco complies with all US export laws and requires our business partners to expressly acknowledge that they too must abide by these laws. We have been unable to find any information suggesting that Cisco employees were aware of any sales of Cisco equipment to Iran. We continue to investigate this matter, as any violation of U.S. export controls is a very serious matter.'... <>Mahmoud Tadjallimehr, a former project manager at MTN Irancell, said in an interview he was present when the telecom carrier obtained more than 10 Cisco routers and numerous switches in 2007 to route communications traffic... <>Asked how the local Iranian company obtained Cisco products, he said: 'How they got into the country, this is another story. I don't have any idea and I don't want to know.'" (Reuters, "Iranian cell-phone carrier obtained banned U.S. tech," 6/4/2012)
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"This license authorizes the company to help the New Zealand Embassy in Iran with a computer project." (New York Times, "Licenses Granted to U.S. Companies Run the Gamut," 12/24/10)

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The Business Monitor International lists Cisco of Iran, based in Tehran, as a subsidiary of Cisco Systems, USA.  (Business Monitor International)

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In its Partner Catalog, Cisco has an entry for “Iran (Islamic Republic of)” with 24 Cisco Technology Developer Partners and one Cisco Solutions Partner. (Company Website)

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The Cisco Learning Network includes the Iran Networking Academy as one of its groups. (Company Website)

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Cisco of Iran (ICCO) is listed as on a page of Iranian companies. (Iranian Company Website)

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Cisco’s Export and Contract Compliance page cites Cisco’s compliance with American regulations, including Export Administration Regulations and Wassenaar Arrangement. Iran is noted in Cisco’s Export and Contract Compliance page as one of several countries where certain Cisco Solutions products may not be delivered. (Company Website)

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Cisco’s Corporate Social Responsibility policy states, “Our corporate social responsibility (CSR) programs are designed to provide long-term benefits to our employees, customers, shareholders, partners, and individuals in communities around the world. We focus on three main areas: Employees, Environment, and Social Investments” (Company Website).

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In its Code of Business Conduct, Cisco claims to be a “good corporate citizen” and states that, “As a global company, we stay on top of laws and regulations as they apply to doing business around the world” (Cisco Code of Business Conduct).