FCC Votes Unanimously to Bar China’s Huawei and ZTE from FCC’s Universal Service Fund
Posted on 11/22/2019
The Federal Communications Commission (FCC) is an independent agency of the United States government created by statute to regulate interstate communications by radio, television, wire, satellite, and cable. The FCC voted 5-to-0 to ban the use of federal funds to acquire Huawei Technologies Co Ltd and ZTEPress equipment and gear. FCC has barred the use of its US$ 8.5 billion a year Universal Service Fund to purchase equipment, services, it perceives as a national security threat. The FCC also voted to propose requiring those carriers to remove and replace equipment from Huawei and ZTE Corp from existing networks. Huawei and ZTE will have 30 days to contest the designation. There is concern that the Chinese government could hack into U.S. networks if Huawei and ZTE gear were used as a backbone of major communication networks.
“When it comes to 5G and America’s security, we can’t afford to take a risk and hope for the best,” FCC Chairman Ajit Pai said in a statement. “We need to make sure our networks won’t harm our national security, threaten our economic security, or undermine our values.”
Huawei disagreed with the announcement and called the order “unlawful”.
In May 2019, U.S. President Donald Trump signed an executive order declaring a national emergency and barring U.S. companies from using telecommunications equipment made by companies posing a national security risk. The U.S. government added Huawei to its trade blacklist in May 2019 over national security concerns. This sentiment was echoed by the U.S. Department of Justice Attorney General Bill Barr in a November 13th letter to the FCC chairman. Barr laid out that Huawei and ZTE’s record of alleged bank fraud, obstruction of justice, and intellectual property theft is proof they are “a threat to our collective security.”
