The FCC has started collecting information from US operators on their use of Huawei and ZTE equipment and services in their networks. The information will help it design a compensation programme to help operators receiving universal service funds replace the Chinese equipment with new suppliers.
The US regulator decided in November 2019 to ban companies receiving universal service funds from using equipment from Huawei and ZTE, due to national security risks. The designations are expected to become final this spring.
The FCC has proposed requiring the carriers to remove and replace existing equipment and services from the Chinese companies. As many are small, rural carriers that may find it difficult to bear the cost, the FCC has proposed starting a reimbursement program to offset the transition costs.
USF operators are required to provide the necessary information to the FCC on their use of the Chinese suppliers and the expected costs of removing and replacing the equipment by 22 April. Other operators may provide the information on a voluntary basis.
