DirecTV fined $5 mn for illegal exports to India

A US-based telecom firm has agreed to pay a $5 million penalty for violating export control regulations and a 2003 agreement restricting sales of commercial technology to military services in India and four other countries, according to state department documents.

DirecTV, through its subsidiary Hughes Network systems also sold to China, South Korea, Turkey and South Africa equipment could be used for voice and data transmission systems, according to a settlement with the state department.

The company had modified the equipment and provided services related to the sales without state department approval in violation of export control rules.

The activities, officials said, also violated a 2003 settlement that followed a state department investigation in which DirecTV, then known as Hughes Electronics Corp., and Boeing Co. agreed to pay $32 million for illegally transferring sensitive space technology to China during 1990s.

The latest violations, which occurred between 1993 and 2003, "provided the foreign recipients with a new capability to enhance secure satellite communications," according to the state department.

Under the latest settlement, which was finalised late last month, the department will not grant DirecTV licences to sell defence equipment overseas until May 14. The state department charged the firm with 56 violations of export control and arms control regulations.

The violations were similar to problems covered under the 2003 settlement and took place during the previous investigation and settlement discussions, state department documents said.