Hon Hai won't insist on Huawei: chairman
By John Liu ,The China Post
May 11, 2014, 12:00 am TWN
TAIPEI, Taiwan -- Hon Hai Precision Industry Co. is not insisting on using equipment made by Huawei Technologies (華為) for the construction of its 4G base stations, but the government should be quick in determining whether to allow the use of Huawei's products, Hon Hai chairman Terry Gou (郭台銘) said yesterday.
Hon Hai is one of the local firms pursuing the fourth-generation (4G) mobile broadband network in Taiwan, and hopes to acquire telecommunications equipment made by China-based Huawei.
The issue turned controversial recently as some suspect that equipment supplied by Huawei will compromise national security. Hon Hai's 4G construction proposal was submitted to the National Communication Commission (NCC) about two months ago, but has not yet received any affirmative responses, the company said.
Terry Gou expressed his discontent recently by threatening to avoid tax payments or to even "move headquarters out of Taiwan." While attending a recent Legislative session, Premier Jiang Yi-huah (江宜樺) said in response that the government would never change its policy or course of action based on the opinion of any individual or groups.
In an impromptu press conference held yesterday, Terry Gou said Jiang is a very busy person who may not have verified all the details related to 4G construction and is therefore unable to make a sound judgment on the issue.
Gou stressed that he is not insisting on using equipment produced by Huawei, but he hopes that the Premier and the NCC will provide a definite response on whether Hon Hai is allowed to acquire Huawei's products. Only
then can Hon Hai decide on its next move, Gou said.
Whatever the decision reached by the NCC the commission should be clear on why the conclusion has been reached, Gou said, echoing Jiang's remarks that all decisions should be based on the law.
With regard to tax evasion Gou stressed that he never said he would not pay taxes if the NCC disallows the adoption of Huawei equipment, he only wants a clear reply.
The NCC requested that Hon Hai sign a contract last year promising not to procure China-made core network equipment to operate mobile broadband services. However, the contract also said it was okay to procure China-made base station equipment, according to Hon Hai's vice president Lu Fang-ming (呂芳銘).
The NCC did not have rules on the proportion of China-made base station equipment allowed in 4G LTE, Lu said. The commission promised to re-draw contracts with Hon Hai if there are adjustments to the rules. However, the company has yet to receive any notification on the matter, Lu said.
According to the original Hon Hai's 4G construction proposal, 70 percent of the equipment will be sourced from international brand names, while 30 percent will be sourced from Huawei. Hon Hai hopes the NCC will make a quick decision so as not to delay the company's operations.