EXTRANCHECK: PRE-LICENSE CHECK: COMPANHIA DE

UNCLAS HONG KONG 002629 SIPDIS USDOC FOR 532/OEA/LHINES/JSONDERMAN USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR WILLIAM ZARIT BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS SIPDIS E.O. 12958: N/A TAGS: BMGT BEXP HK ETRD ETTC SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: COMPANHIA DE TELECOMUNICACOES DE MACAU S.A.R.L. AND CYBER ON-AIR (ASIA) LTD. REF: A) USDOC 08861 B)D383707 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12C of the Export Administration Act. ¶2. As per reftel A request and at the direction of the Office of Enforcement Analysis (OEA) of the USDOC Bureau of Industry and Security (BIS),Export Control Officer Philip Ankel (ECO) conducted pre-license checks (PLCs) at Cyber On-Air (Asia) Ltd. (Cyber On-Air),Unit 309, Fook Hong Industrial Building, 19 Sheung Yuet Road, Kowloon, Hong Kong and Companhia de Telecomunicacoes de Macau S.A.R.L., Rua de Lagos, Telecentro, Taipa, Macau (CTM). The PLCs concerned a cesium clock valued at USD 30,692. The license applicant is Symmetricom Inc., of San Jose, California. The item is classified under ECCN 3A002 and is controlled for national security reasons (NS). ¶3. Cyber On-Air is a Hong Kong registered company that has been in existence since 1994. Its directors are Hong Kong residents Choi, Wing Kin and So, Kam Wing. The paid-up capital of the company is the Hong Kong equivalent of USD 12,500. ¶4. On October 5, 2007, the ECO visited Cyber On-Air at the address above and met with Ms. Connie Wong, Sales Admin Officer. Ms. Wong provided a general overview of the company (consistent with information on the company's web site: www.cyberonair.com). The company serves primarily Hong Kong and Macau based customers. CTM is a long-standing customer of Cyber On-Air. Ms. Wong provided the ECO with a copy of the CTM purchase order to Cyber On-Air. In this transaction, Cyber On-Air is the distributor for Symmetricom and will provide installation and other support as well. ¶5. CTM has been providing a range of telecom services in Macau including fixed line, mobile, internet and IDD related services since the 1980s. Cable & Wireless of the United States is a 51% shareholder. Other major shareholders are CITIC Pacific and Portugal Telecom. Additional information is available at www.ctm.com.mo. ¶6. On October 9, 2007, the ECO visited CTM at the address referenced above and met with Mr. Filipe Antonio, General Manager, Transport Network, Network Operations. Mr. Antonio provided an overview of CTM (summarized above) and then described the purpose behind CTM's intended purchase of the cesium clock. Mr. Antonio stated that CTM will use the item as a network timing device. Presently, CTM uses GPS receivers for these purposes but these are subject to radio interference. CTM is familiar with Symmetricom products and has elected to purchase this item based on their positive experiences with Symmetricom products. Mr. Antonio provided the ECO with a copy of the purchase order for the item as well as a copy of the CTM end-user statement. Mr. Antonio also showed the ECO where the clock will be installed within one of CTM's switching rooms. ¶7. At the time visited, both Cyber On-Air and CTM appeared to be suitable recipients of the subject controlled item since they cooperated with the PLCs and their activities are consistent with the use of the ordered item. The ECO recommends that this PLC be Favorable. Cunningham