The problem was not with Alcatel SpeedTouch USB modem software:
Alcatel SpeedTouch USB Diagnostics (PPP) (dragdiag.exe) Version V140_3R
I am using Qwik-Fix Pro and an update to fix Load Image Exploits caused the error when trying to run the above program.
By disabling Qwik-Fix or just disabling the Block Load Image Exploits fix in Advanced Options allows program to run.
I have notified PivX of this bug.