The China Association of Communication Enterprise (CACE) has signed a letter of intent with Taiwan’s Industrial Technology Research Institute (ITRI) to increase cooperation in the telecommunications sector at the Cross-strait Communications Industry Cooperation and Interaction Conference. According to the event’s organisers, ITRI, the deal proposed that Chinese companies purchase TWD150 billion (USD5.14 billion) of equipment from Taiwan. ITRI’s director of information and communications research laboratories, Wu Cheng-wen said that the cooperation agreement will see the two groups undertake joint research and development projects, focusing on 4G and value added services (VAS). Cheng-wen went on to say that future collaborative ventures may encompass cloud computing or wireless cities.
CACE represents both China’s operators and vendors, including equipment manufacturer Huawei, which, according to TeleGeography’s CommsUpdate became embroiled in controversy in Taiwan early last month. Taiwan’s regulator the National Communications Commission (NCC) forbade the use of core network equipment from Huawei, citing national security concerns. A spokesperson for the NCC confirmed that telcos wishing to use source core network equipment from Huawei must first secure approval from the NCC and Taiwan’s Investigation Bureau. Telcos were reportedly encouraged to acquire similar technology from other vendors.