Money Telstra refuses to rule out using corrupt Chinese company ZTE

22:41  15 may  2018
22:41  15 may  2018 Source:   msn.com

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Telstra has refused to rule out doing business with telecommunications supplier ZTE , which is shortlisted to build Australia's high-speed mobile network, after claims the Chinese -based company is corrupt .

Telstra has refused to rule out doing business with telecommunications supplier ZTE , which is shortlisted to build Australia's high-speed mobile network, after claims the Chinese -based company is corrupt .

ZTE is one of five companies on Telstra's shortlist to build the next 5G network.© AP ZTE is one of five companies on Telstra's shortlist to build the next 5G network.

Telstra has refused to rule out doing business with telecommunications supplier ZTE, which is shortlisted to build Australia's high-speed mobile network, after claims the Chinese-based company is corrupt.

Australia's biggest telco has defended its high standards when choosing suppliers after revelations that ZTE has been involved in systemic foreign bribery and corrupt payments to government officials, but Telstra has not taken the Chinese telco off a shortlist of five companies that could build Australia's 5G network.

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Telstra has refused to rule out doing business with telecommunications supplier ZTE , which is shortlisted to build Australia's high-speed mobile network.

Telstra has refused to rule out doing business with telecommunications supplier ZTE , which is shortlisted to build Australia's high-speed mobile network, after claims the Chinese -based company is corrupt .

ZTE is one of the world's largest suppliers of telecommunications equipment. Companies on the shortlist already make up of the majority of those globally that have the ability to build the network.

During a phone conference on Monday, Telstra chief financial officer Warwick Bray said the company had noted reports about ZTE and that Telstra had "the strongest supplier governance and policies and we always review new material."

"Governance and probity and abiding by regulations is a critical part of our supplier decisions," he said.

But he declined to answer further questions about the ZTE situation, including whether there was much choice for the telco to pick from outside of China, saying the call was a "trading update".

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Corrupt Chinese company on Telstra shortlist. By Nick McKenzie & Angus Grigg. In a statement to Fairfax Media, ZTE refused to comment on the specific allegations but said it would look into the matter.

ZTE says it has business in more than 160 nations. Although large American wireless carriers do not use the company ’s telecommunications equipment out of security concerns, it is the No. 4 smartphone brand in the United States, behind Apple, Samsung and LG. Chinese officials raised objections to the

Later a Telstra spokesman refused to clarify whether the revelations about ZTE would see it scrubbed from the shortlist but did say the telco "will monitor this situation closely".

"We expect that our suppliers comply with our standards which are described in our supplier code of conduct," he said.

"We seek to ensure that gifts, prizes and hospitality are not given or accepted in inappropriate circumstances, including where the offering or acceptance may compromise (or be perceived to compromise) independence, or be construed as a bribe."

He would not confirm when a decision needed to be made on the contract.

Chinese technology company Huawei, also on Telstra's shortlist, is banned in the US on security grounds and faces criminal charges for breaching sanctions.

Huawei Australia's director of corporate affairs Jeremy Mitchell said it was a "100 per cent employee-owned company and poses no security threat in any country".

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President Xi of China , and I, are working together to give massive Chinese phone company , ZTE , a way to get back into business, fast. "But be cool, it will all work out !" — CNN's Julia Horowitz, Steven Jiang and Boris Sanchez contributed to this report.

Visitors are seen at a booth of Chinese telecom equipment maker ZTE Corp at an expo in Beijing, China , September 27, 2017. REUTERS/Stringer. The United States this week imposed a ban on American companies selling parts and software to ZTE for seven years, saying it had broken a

"Our products and solutions are trusted in more than 170 countries and regions. In 30 years, not a single telco operator has experienced a security issue with our equipment, including Australian operators," Mr Mitchell said.

The next generation ultra-fast mobile 5G technology underpins the telco's strategy to become a technology company, providing both dumb pipes and connectivity, as well as the data and solutions for businesses.

Industry insiders said ZTE and Huawei had won work around the world because they had been highly competitive on price and were technology leaders.

“[Chinese government-backed backed entities] don’t need to bribe anyone to pick-up … the railway wireless network in Perth. They can just go in at a lower cost than everyone else, like Ericsson or Nokia, and win the business that way," said one industry insider, speaking on the condition of anonymity.

Mr Bray said Telstra had dropped ZTE-branded devices on Friday,  following an announcement in April of a denial order stopping US companies from selling components and software to the Chinese supplier, which then prevented devices being manufactured for Telstra's range.

Telstra Outage Fix: Restart Your Phones

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ZTE Corp., the Chinese phonemaker that once hoped to rival Apple, has been brought to near Carriers, including Australia's Telstra Corp., stopped offering its devices. "As a result of the denial order, the major operating activities of the company have ceased," ZTE said in a filing to the exchange.

ZTE Corporation, a Chinese firm that sells millions of phones in the United States, has halted "major operating activities" after a US ban against the company If ZTE goes out of business, it would mark the most dramatic development yet in the looming trade war between China and the United States.

"We are hopeful that ZTE will be able to reach a resolution to this matter soon so that we can recommence selling Telstra-branded ZTE devices," Telstra head of innovation and strategy Michele Garra said in a blog post last week.

Contacted for comment Home Affairs Minister Peter Dutton's office pointed to the government's recently passed legislation covering security around telecommunications and critical infrastructure.

"The government will determine whether changes to the telecommunications network or other critical infrastructure pose a risk to national security and provide this advice to industry on a case-by-case basis," Mr Dutton's spokeswoman said.

"The government respects the rights of all sovereign nations to make decisions in their national interest."

US President Donald Trump said on Monday he would help China's President Xi Jinping to get ZTE back into business, saying too many jobs in China had been lost.

"President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast," Trump tweeted. "Too many jobs in China lost. Commerce Department has been instructed to get it done!"

Federal Court Rules That Telstra's Unlimited Mobile Ads Are Misleading .
Last week Optus sought Federal Court orders to force Telstra to cease using the word "unlimited" in advertisements for their $69 per month mobile plan. Yesterday it was ruled that these advertisements constitute as misleading and deceptive. Telstra introduced a new plan in early May called the 'Endless Data BYO Plan'. And while this in itself may not seem particularly misleading, some of the advertising around it certainly did.The telco ran advertisements for the plan using the tagline - 'One word from Australia’s best mobile network. Unlimited.'As we reported earlier this month, these plans weren't technically unlimited.

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