Pakistanis angry over detentions in Times Sq. case Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German
Minister seeks closure of anti-Berlusconi websites Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
Edition:
U.S.
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Home
Business
Business Home
Economy
Technology
Media
Small Business
Legal
Deals
Earnings
Social Pulse
Business Video
The Freeland File
Aerospace & Defense
Investing Simplified
Markets
Markets Home
U.S. Markets
European Markets
Asian Markets
Global Market Data
Indices
M&A
Stocks
Bonds
Currencies
Commodities
Futures
Funds
peHUB
Dividends
World
World Home
U.S.
Brazil
China
Euro Zone
Japan
Africa
Mexico
Russia
India Insight
World Video
Reuters Investigates
Decoder
Politics
Politics Home
Supreme Court
Politics Video
Tech
Technology Home
MediaFile
Science
Tech Video
Tech Tonic
Social Pulse
Opinion
Opinion Home
Chrystia Freeland
John Lloyd
Felix Salmon
Jack Shafer
David Rohde
Nader Mousavizadeh
Lucy P. Marcus
Nicholas Wapshott
Bethany McLean
Anatole Kaletsky
Zachary Karabell
Edward Hadas
Hugo Dixon
Ian Bremmer
Lawrence Summers
Susan Glasser
The Great Debate
Reihan Salam
Frederick Kempe
Mark Leonard
Steven Brill
Breakingviews
Equities
Credit
Private Equity
M&A
Macro & Markets
Politics
Breakingviews Video
Money
Money Home
Tax Break
Lipper Awards 2012
Global Investing
MuniLand
Unstructured Finance
Linda Stern
Mark Miller
John Wasik
James Saft
Analyst Research
Alerts
Watchlist
Portfolio
Stock Screener
Fund Screener
Personal Finance Video
Money Clip
Investing 201
Life
Health
Sports
Arts
Faithworld
Business Traveler
Entertainment
Oddly Enough
Lifestyle Video
Pictures
Pictures Home
Reuters Photographers
Full Focus
Video
Reuters TV
Reuters News
Article
Comments (1)
Slideshow
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
Approaching comet may outshine the moon
28 Dec 2012
Chavez suffers new post-surgery complications
30 Dec 2012
Nine killed, more than 25 hurt in Oregon bus crash: state police
30 Dec 2012
Hours from "fiscal cliff," Washington still awaits deal
|
1:27am EST
In Indian student's gang rape, murder, two worlds collide
1:35am EST
Discussed
143
French court rejects 75 percent millionaires’ tax
126
UPDATE 1-US administration urges Republicans not to block ‘fiscal cliff’ deal
117
Americans blame Republicans more than Democrats for ”fiscal cliff”: Reuters/Ipsos poll
Pictures
Reuters Photojournalism
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Photos of the week
Our top photos from the past week. Slideshow
Life in Aleppo's ruins
The quieter moments in Syria's battle town. Slideshow
Exclusive: Huawei partner offered embargoed HP gear to Iran
Tweet
Share this
Email
Print
Related News
Special Report: Inside the West's economic war with Iran
Fri, Dec 28 2012
Tougher EU sanctions against Iran come into force
Sat, Dec 22 2012
Israel sees new US poise, including military, to curb Iran
Tue, Dec 18 2012
Iran says it, world powers must end nuclear stalemate
Mon, Dec 17 2012
U.N. agency expects deal soon on Iran nuclear probe
Fri, Dec 14 2012
Analysis & Opinion
Iran bans flights during Islamic call to prayer: report
How could HP find a $5bln gap in Autonomy’s value?
Related Topics
Investing Simplified »
Tech »
China »
Middle East Turmoil »
1 of 2. A sales assistant looks at her mobile phone as she waits for customers behind a counter at a Huawei booth in Wuhan, Hubei province, in this October 10, 2012 file photo. 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.
Credit: Reuters/Stringer
By Steve Stecklow
Sun Dec 30, 2012 6:33pm EST
(Reuters) - 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. Nevertheless, the incident provides new evidence of how Chinese companies have been willing to help Iran evade trade sanctions.
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. He added that his company strives to comply fully with all U.S. laws and sanctions.
Huawei has a similar partnership with HP. In a statement, the Palo Alto, Calif., company said, "HP has an extensive control system in place to ensure our partners and resellers comply with all legal and regulatory requirements involving system security, global trade and customer privacy and the company's relationship with Huawei is no different."
The statement added, "HP's distribution contract terms prohibit the sale of HP products into Iran and require compliance with U.S. and other applicable export laws."
Washington has banned the export of computer equipment to Iran for years. The sanctions are designed to deter Iran from developing nuclear weapons; Iran says its nuclear program is aimed purely at producing domestic energy.
CLOSE LINKS
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. A former Skycom employee said the two companies shared the same headquarters in China. And an Iranian telecom manager who has visited Skycom's office in Tehran said, "Everybody carries Huawei badges."
A Hong Kong accountant whose firm is listed in Skycom registration records as its corporate secretary said Friday he would check with the company to see if anyone would answer questions. Reuters did not hear back.
The proposal to MCI, dated October 2010, would have doubled the capacity of MCI's billing system for prepaid customers. The proposal noted that MCI was "growing fast" and that its current system, provided by Huawei, had "exceeded the system capacity" to handle 20 million prepaid subscribers.
"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 proposal makes clear that HP computer servers were an integral part of the "Hardware Installation Design" of the expansion project. Tables listing equipment for MCI facilities at a new site in Tehran and in the city of Shiraz repeatedly reference HP servers under the heading, "Minicomputer Model."
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." The pages list prices for HP servers, disk arrays and switches, including those that already are "existing" and others that need to be added. The total proposed project price came to 19.9 million euros, including a "one time special discount."
The proposed new HP equipment, which totaled 1.3 million euros, included one server, 20 disk arrays, 22 switches and software. The existing HP equipment included 22 servers, 8 disk arrays and 13 switches, with accompanying prices.
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."
Officials with MCI did not respond to requests for comment.
In a series of stories this year, Reuters has documented how China has become a backdoor for Iran to obtain embargoed U.S. computer equipment. 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.
TCI is the parent company of MCI.
(Additional reporting by Grace Li and Chyen Yee Lee in Hong Kong and Marcus George in Dubai; Edited by Simon Robinson)
Investing Simplified
Tech
China
Middle East Turmoil
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
Abulafiah wrote:
Edition:
U.S.
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Back to top
Reuters.com
Business
Markets
World
Politics
Technology
Opinion
Money
Pictures
Videos
Site Index
Legal
Bankruptcy Law
California Legal
New York Legal
Securities Law
Support & Contact
Support
Corrections
Connect with Reuters
Twitter
Facebook
LinkedIn
RSS
Podcast
Newsletters
Mobile
About
Privacy Policy
Terms of Use
AdChoices
Copyright
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
Thomsonreuters.com
About Thomson Reuters
Investor Relations
Careers
Contact Us
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.