On November 23rd the Federal Communications Commission (FCC) passed a decision banning operators from using federal subsidy funds to buy Huawei and ZTE devices. The decision is divided into two parts:
1. Regarding the FCC’s Universal Services Fund, the Universal Services Fund is an official Subsidy for U.S. telecommunications providers to support low-income families’ use of telecommunications services. The proposal prohibits telecom providers from using the FCC’s $8.5 billion fund to buy Huawei and ZTE products.
2. To encourage rural telecom suppliers to replace Huawei ZTE’s telecommunications equipment, the proposal would first estimate the number of Huawei ZTE devices used by these suppliers and then provide financial assistance to help them replace Huawei ZTE equipment.
In response, Huawei issued a statement opposing the claim that it believed that Huawei posed a national security threat without evidence, not only violating the principles of due process in the legislation, but also suspected of violating the law.
Huawei has gone further and decided to challenge the FCC’s decision,media said, saying it could file a lawsuit with the 5th Circuit Court of Appeals in New Orleans this week and announce the news at its headquarters in Shenzhen.
For small operators in remote areas of the United States, Huawei ZTE’s devices are almost irreplaceable, and the constant use of them has prevented them from being able to change to other brands in a short period of time, and the cost of replacing them is unacceptable.