The FCC has ruled that Huawei and ZTE pose a threat to national security. This means that telecom providers can no longer purchase hardware from the companies with government subsidies. Existing equipment must be replaced.
According to Reuters, the FCC unanimously agreed to the provision. By labeling Huawei and ZTE as a risk to national security, telecom providers can no longer purchase equipment by using a dedicated government fund. As a result, providers will have to look for alternatives, including for building their 5G networks.
The FCC has also determined that US telecom companies must replace their existing Huawei and ZTE equipment in their networks. This would involve a price tag of approximately 2 billion dollars. It is possible that the American government is making some of that money available for the purchase of replacement equipment. Incidentally, providers are not completely excluded from buying equipment from Huawei or ZTE: for applications where their hardware is required, it remains possible to make a purchase.
The US has been working for some time to make Huawei’s operations more difficult. The fact is that the company had already been subject to a trade ban, as a result of which US companies are not allowed to take part in Huawei’s business. However, this ban has been suspended a number of times.
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