FCC approves rule denying subsidies to carriers using equipment from Huawei and ZTE
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FCC approves rule denying subsidies to carriers using equipment from Huawei and ZTE
Commission to set aside extra funds to help rural carriers in 'transitioning to more trusted vendors'
What just happened? Huawei is continuing to feel pressure as the US government clamps down on what it considers "national security threats." On Friday, the FCC approved a measure to cut funding to US projects using equipment from Huawei and ZTE or any other "bad actor." The long delayed vote was unanimous.
The Federal Communications Commission's Universal Service Fund has $8.5 billion earmarked for subsidizing carriers in making improvements to the communications infrastructure in the US. In today's ruling, it said that none of that money would go to carriers who use parts or equipment from the banned companies.
"We take these actions based on evidence in the record as well as longstanding concerns from the executive and legislative branches," said Chairman Ajit Pai in a statement on the proposal. "Both companies have close ties to China's Communist government and military apparatus. Both companies are subject to Chinese laws broadly obligating them to cooperate with any request from the country's intelligence services and to keep those requests secret. Both companies have engaged in conduct like intellectual property theft, bribery, and corruption."
"It should not have taken us eighteen months to reach the conclusion that federal funds should not be used to purchase equipment that undermines national security."
The two companies have repeatedly denied the allegations Pai mentioned, with Huawei filing a suit against the US for its continuing ban despite some rollback. However, the FCC feels, on a bipartisan level, that