FCC Pushes Plan that Would Squeeze Out Huawei and ZTE
The FCC today moved forward with a plan that would make it harder and/or more expensive for U.S. companies to buy equipment from corporations that might pose a security risk. Though the FCC didn't call out China-based Huawei or ZTE by name, the proposal is clearly meant to keep the two companies sidelined in the U.S market. Specifically, the FCC wants to "prohibit use of [Universal Service Fund monies] on the purchase of equipment or services from any company that poses a national security threat to the integrity of U.S. communications networks or the communications supply chain." The Notice of Proposed Rulemaking adopted by the FCC today isn't final, and the agency is seeking input on how to implement the proposed prohibition. For example, what types of equipment/services should be banned, how should the FCC identify the equipment, what are the costs/benefits, and finally could the rule best be enforced. Huawei and ZTE are taking fire from lawmakers for their supposed ties to the Chinese government. Today's action follows recent blows to Huawei and ZTE. Earlier this year, Huawei lost distribution deals with AT&T and Verizon Wireless, while earlier this week ZTE was banned from buying American components and technology for its phones. "Hidden 'backdoors' to our networks in routers, switches, and other network equipment can allow hostile foreign powers to inject viruses and other malware, steal Americans' private data, spy on U.S. businesses, and more," said FCC Chairman Ajit Pai. Republican lawmakers have also introduced legislation that would bar U.S. government employee from buying Huawei and ZTE phones. Neither Huawei nor ZTE commented on the FCC's actions.
Mar 30, 2018
Huawei plans to soldier on in the U.S. market despite recent setbacks.
Mar 26, 2018
FCC Chairman Ajit Pai wants to prevent the government and companies from using the Universal Service Fund to buy equipment from companies that represent a security threat to the U.S. "Threats to national security posed by certain communications equipment providers are a matter of bipartisan concern.
Dec 31, 2018
President Donald Trump is weighing new action against Chinese telecommunications equipment makers Huawei and ZTE, says Reuters. The President might issue an executive order that would bar U.S.
May 2, 2018
The government doesn't want military personnel buying Huawei or ZTE phones. The Pentagon has ordered the retail stores on U.S.