The FCC has denied an appeal from ZTE to reconsider the US regulator's decision to declare ZTE a national security threat. The order first issued 30 June means ZTE cannot supply telecom companies receiving subsidies from the Universal Service Fund in the US.
Huawei is subject to the same designation. In December, the FCC will vote on how operators must remove existing equipment from the Chinese suppliers from their networks. However, Congress still needs to dedicate funds for this, after operators estimated the cost at nearly USD 2 billion. Many are smaller rural carriers that are unable to support the cost of replacing major network elements and will require government assistance.
While ZTE and Huawei products are not possible for federal-funded projects, they may still be used for private investment and by consumers. Most recently ZTE launched its Blade A3Y smartphone with Verizon's mobile brands Visible and Yahoo Mobile.
