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More Trouble for Chinese Telecom
PUBLISHED: Apr 18, 2018
Last month, we published a blog about Chinese telecom company Huawei becoming the world's largest telecom equipment supplier. Huawei had accomplished this despite its equipment being banned in the United States. 

Now another Chinese telecom equipment maker--ZTE--has come under fire. On Monday, the Commerce Department barred all U.S. companies from exporting to ZTE for seven years, saying it violated a previous 2017 settlement of criminal and civil charges for making illegal shipments to Iran and North Korea. 

According to The Washington Post

"Under the terms of the 2017 settlement, ZTE agreed to pay the United States $1.19 billion in fines and punish the employees involved in breaching U.S. sanctions by shipping telecommunications equipment to Iran and making 283 shipments of microprocessors, routers and servers to North Korea.

The penalty was the largest fine and forfeiture ever levied in an export control case, Commerce said at the time."

In the settlement, ZTE agreed to punish the employees involved in breaking sanctions. While four employees were fired, others were not penalized.

“ZTE misled the Department of Commerce. Instead of reprimanding ZTE staff and senior management, ZTE rewarded them. This egregious behavior cannot be ignored,” Commerce Secretary Wilbur Ross said in a statement.

This week's ruling could have a damaging impact on the company.

“In essence, it strangles their ability to obtain essential components in the United States,” David Laufman, a former Justice Department official who oversaw the criminal prosecution of the company, told The Washington Post. “In the near and medium term, it’s going to be extremely damaging to ZTE.”




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HPA Consulting Group, Inc. (HPA) is a privately owned consulting firm headquartered in Rochester, NY providing specialized consulting services in Voice and Data Communications. HPA was founded in 1994 by Bill Hughes and Tom Phelps. Together, the HPA Team has over 200 years of experience in many facets of voice and data communications.

HPA facilitates businesses in determining the best communications solution for their company. This involves voice and data networks, call centers and broadband applications. In addition, HPA manages the telecom expenses for businesses to get them the most cost effective telecom solutions possible. HPA also helps telecommunications providers and manufacturers with their marketing, sales and business planning.

Since HPA's formation in 1994, over 400 clients have contracted to HPA for services. HPA has planned, designed and implemented a variety of voice and data solutions that have enabled businesses to enhance their operations in a cost-effective manner. HPA has also audited telecommunications invoices and recommended changes to client’s telecommunications services that have resulted in millions of dollars in savings for HPA’s clients.

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Some HPA Projects Include:

  • Designed and implemented a complete new voice, data and security network for a regional bank and their branches. Results included improved customer service in their call center, improved communication between locations and redundancy at all locations including the branches.
  • Designed and implemented a new VoIP telecommunications network including new equipment and services for a Rochester based not-for-profit with over 15 locations.
  • Redesigned a not-for-profit organization’s telecommunications system in five cities by implementing new services and pricing and auditing telephone bills. The savings paid for all new telephone equipment in less than two years.
  • Manage the communications network for a regional hospital in central New York. HPA has lowered the costs for the hospital and at the same time implemented a more up-to-date network with more functionality and redundancy.
  • Designed and implemented a Call Center for a Benefit Company in Rochester. Project resulted in drastic improvements in customer service.
  • Planned and designed a new voice and data network for a Law Firm with six locations in New York State.

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