FCC Approval Rules Refuse to Subsidize Carriers Using Huawei and ZTE Communications Equipment

Huawei continues to come under pressure as the U.S. government takes tough action against so-called “national security threats,”media outlet Techspot reported. On Friday, the Federal Communications Commission (FCC) approved a measure that would deny funding to U.S. operators and “bad actors” who use Huawei and ZTE communications equipment.

FCC Approval Rules Refuse to Subsidize Carriers Using Huawei and ZTE Communications Equipment

The FCC’s Universal Services Fund has allocated $8.5 billion to subsidize operators to improve the U.S. communications infrastructure. However, the FCC said Friday that the money will not go to operators that use parts or equipment from banned companies.

“We have taken these actions in light of the evidence in the record and the long-standing concerns of the executive and legislative branches,” FCC Chairman Ajit Pai said in a statement on the proposal. “Both companies are bound by local law and have a broad obligation to cooperate with and keep these requests confidential from any request from the intelligence services. Both companies engage in acts such as intellectual property theft, bribery and corruption. “

The two companies have repeatedly denied the allegations made by Pai, with Huawei suing the U.S. over the ongoing ban. “It’s not hard,” FCC Commissioner Jessica Rosenworcel said after the unanimous approval was announced. “It should take us 18 months to conclude that federal funds should not be used to buy equipment that undermines national security. “

U.S. telecommunications operators, especially smaller ones, will feel the importance of the ban, which will increase the cost of their projects. The FCC is aware of the additional burden and says the committee has developed a plan to reduce work in smaller rural areas.

“To mitigate the financial impact of this requirement, particularly for small rural operators, we recommend a compensation plan to help offset the costs of transitioning to a more trusted provider,” Pai said.

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