Taiwanese legislators expressed their worries over the Chinese telecom sector after last week’s release of a US congressional report saying two of China’s largest telecom operators, Huawei and ZTE, posed security threats to America through the use of “backdoor” systems in the equipment being sold.
Hsu Chung-hsin, from the Taiwan Solidarity Union, opposed plans by the national government allowing China to continue investing in the island-nation’s telecom industry. The Taiwanese government is working on the details of opening Type 1 Telecommunications enterprises to Chinese investors.
Hsu cited the recent US intelligence report that Chinese telecom operators were using the equipment they sold to business and government agencies for espionage purposes. The year-long investigation on Huawei and ZTE by the US House of Representatives recommended that both telecom operators be barred from any business activities like mergers, acquisitions, and takeovers in the US Market.
Critiques of the report point out to the timing of its release, as Huawei mulls over an IPO in the States.
According to Hsu, confidential information being held by the Taiwanese government may be compromised in Chinese investment was allowed. He further recommended that the government pass an economic espionage act to protect local businesses from the possible Type 1 investment plans.
Huawei has long penetrated the Taiwanese market. Majority of the island’s 3G wireless network cards are manufactured by the Chinese telecom giant. It has also secured millions of dollars in wireless equipment contracts from Taiwanese telecom operators.
Oger Telecom, 35-percent owned by Saudi Telecom, will inject $180 million into its South African subsidiary Cell C to improve the coverage and quality of the unit’s network, the Dubai-based firm said.
Cell C has about 13 percent of the mobile market in Africa’s top economy, but is a distant third to MTN and Vodacom and earlier this year its newly appointed chief executive was reported as saying the firm’s strategy would be to take customers from its larger rivals.
Qatar Telecom has raised 6.8 billion riyals ($1.87 billion) from a fully subscribed rights issue, the firm said in a statement on Tuesday.
The capital will be used for general corporate purposes and to refinance existing debt, according to a regulatory filing to the London Stock Exchange where Qtel has bonds listed.
Africa’s telecom sector has become one of the most sought after investment opportunities globally, and leading industry and finance executives are meeting in London on June 7 to assess surge in opportunities.
Unlike in many other regions, Africa’s telecom sector still offers huge growth potential, but new challenges must be met to attract sufficient investment. Telecom CEOs, CFOs and CSOs, investment bankers, investors and specialist advisers are gathering at the TMT Finance & Investment Africa Conference to debate new growth strategies, investment and financing models.
A prospectus lodged in the US is a very dry affair these days but Facebook’s paperwork for the float did highlight some great data points relating to what is going on online.
Facebook says the internet still represents only a modest portion of total advertising spending, even though its audience reach is greater than television, and the ability to harness the internet for targeted or interactive marketing is unparalleled.