Terry Gou denies pressuring NCC on Chinese 4G equipment
Central News Agency
2014-05-10 10:13 PM
Taipei, May 10 (CNA) The Hon Hai Group did not pressure Taiwan's telecommunications regulator to approve the purchase of 4G base station equipment from China but simply wanted to know whether such a purchase could be made, Hon Hai chairman Terry Gou said Saturday. Earlier this week, Gou reportedly threatened that Hon Hai would stop paying taxes if subsidiary Ambit Microsystems was not allowed to use equipment from China's Huawei Technologies to operate its 4G telecom services. Asked about Gou's comment at a legislative hearing on Friday, Premier Jiang Yi-huah said the government would never bow to threats by any company, social movement, or politicians who issue ultimatums.

It will carry out administrative tasks according to the law, Jiang said. At a press conference Saturday, Gou said the premier was busy with many different issues and may not have had a clear understanding of the matter. He denied putting pressure on the National Communications Commission (NCC) to approve the use of Huawei equipment, saying he only wanted to know if China-made telecommunications equipment would be allowed so that the company could decide its next move. Gou, who heads the world's largest contract electronics maker, said that he did not threaten to stop paying taxes if the application was rejected and wanted to make that clear to the premier. Hon Hai Vice President Lu Fang-ming said that when the Hon Hai Group bid for 4G mobile spectrum licenses last year, the NCC had it sign a document stating that procuring China-made wireless broadband base station equipment would be allowed but China-made core Internet equipment would not. At that time, the NCC did not impose any restrictions on the extent to which Taiwanese companies could buy 4G LTE base station equipment from China, but said that if the situation changed, the NCC would ask the Hon Hai Group to sign another document, Lu said. No such document has been received to date, the executive said.

Ambit Microsystems wants to purchase 4G base station equipment from China's Huawei, but the application has been put on hold by the NCC. According to media reports earlier this week, Gou protested the indecision and hoped for the application to be approved within a week. (By Jalen Chung and Evelyn Kao)

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