U.S. regulator to bar Huawei and ZTE from the government subsidy program

The U.S. telecommunications regulator votes to designate China’s ZTE and Huawei as national security risks, banning their U.S. rural carrier customers from tapping an $8.5 billion government fund to purchase services and equipment.

The Federal Communications Commission (FCC) proposes requiring those carriers to replace and remove equipment from such designated companies.

At a meeting set for 19th Nov, the FCC plans to vote to ask carriers how much it would cost to remove and replace Huawei Technologies Co Ltd and ZTE Corp from existing networks and to establish a reimbursement program to offset the costs of equipment removal.

This is the latest action by the U.S. government aimed at barring U.S. companies from purchasing ZTE and Huawei equipment. ZTE and Huawei would have 30 days to contest the FCC’s national security risk designation, and a final order compelling removal of equipment is not expected until next year.

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