The Federal Communications Commission today voted unanimously to ban Huawei and ZTE equipment in projects funded by the FCC Universal Service Fund (USF).

The ban initially affects future projects paid for by the USF and the use of federal funding to maintain existing equipment. But the FCC also takes public comment on another plan to require the removal of Huawei and ZTE devices from already built networks. The FCC order establishes a process for identifying other companies whose equipment must also be subject to the same prohibition.

Huawei and ZTE are the first prohibition targets because they have “close ties with the communist government and China’s military apparatus,” said FCC chairman Ajit Pai. “Both companies are subject to Chinese legislation that generally requires them to cooperate with and keep confidential any request from the country’s intelligence services. Both companies have behaviors such as theft of intellectual property, bribery and corruption.”

Pai warned that “hidden” backdoors “to our networks in routers, switches, and other network equipment could enable a hostile opponent to inject viruses and other malware, steal Americans’ private data, spy on American companies, and more.”

The ban on Huawei / ZTE takes effect immediately after the FCC order has been published in the federal register.

The Universal Service Fund distributes $ 8.5 billion a year and is paid by Americans through fees on their telephone bills. The program includes the Connect America Fund, which gives ISPs money to deploy broadband in rural areas; Lifeline, which offers discounts on telephone and broadband services to low-income consumers; the e-rate broadband program for schools and libraries; and a telecom access program for rural health care providers.

If the FCC ultimately requires existing Huawei and ZTE equipment to be pulled out, it is not clear how much money the government would contribute to that process. The FCC said it is “searching (commenting) about how to pay for such removal and replacement.”

Problems for small ISPs

All five members of the Republican majority committee approved the order, but Democrat Jessica Rosenworcel said she is concerned that the Trump government will undermine its effectiveness. She said:

When the United States government takes action against Huawei or ZTE, the goal must be security. But in Washington, I fear that these problems can easily be taken into account in broader trade issues. Despite our actions today, we have to struggle with the fact that the administration could at any time exchange our security objectives for a temporary benefit in bilateral trade negotiations. I hope this doesn’t happen, but let’s face it, it happened earlier, when this government reversed the course of banning ZTE from doing business in the United States. If it happens again, this has serious consequences for our credibility.

Democrat Geoffrey Starks said that nationwide wireless internet providers make extensive use of Huawei and ZTE devices and that they need significant government assistance to replace them. “These carriers consist of hard-working men and women who serve hard-to-reach communities that large carriers cannot or will not serve, who work with small teams and tight budgets,” Starks said.

Republican Michael O’Rielly discussed another potential problem for small airlines, which are not allowed to use federal funding to maintain existing Huawei and ZTE equipment.

“Our decision to prohibit the use of USF funds to maintain, modify or support covered equipment in any way may require some providers to replace equipment earlier than planned when making minor changes or repairs, “O’Rielly said. “Unfortunately, these costs will mainly affect the country’s smaller providers, which have probably covered more equipment and may be dependent on USF dollars to remain viable.”

As part of the evaluation of replacing existing equipment, Pai said the FCC requires airlines to “provide information about their use of equipment from Huawei and ZTE, as well as the potential costs associated with removal and replacement of such equipment.”

Similar Posts

Leave a Reply