FCC Staff Deems Huawei, ZTE Part of USF Spending Ban
The $8.3 billion annual USF "may no longer be used to purchase, obtain, maintain, improve, modify, or otherwise support any equipment or services produced or provided by" Huawei and ZTE, the FCC announced Tuesday afternoon. The Public Safety Bureau designated the Chinese telecom gear makers as covered under the commission's 5-0 November ban on buying from companies posing a national security threat.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
This was "based on the overwhelming weight of evidence," said FCC Chairman Ajit Pai. “Both companies have close ties to the Chinese Communist Party and China’s military apparatus, and both companies are broadly subject to Chinese law obligating them to cooperate with the country’s intelligence services." This release and related actions are here.
"Network security is national security" and this helps "secure our networks against new threats from Huawei and ZTE equipment," said Commissioner Geoffrey Starks. "We must prioritize our review of our recent information collection and establish an expedited plan for the removal and replacement of untrustworthy equipment." The other FCC members didn't immediately comment.
Huawei and ZTE didn't comment. Nor did China's embassy.