US tightens ban on sale on Huawei, ZTE network equipment

Nieuws Algemeen Verenigde Staten 12 NOV 2021
US tightens ban on sale on Huawei, ZTE network equipment

US President Joe Biden has signed legislation prohibiting companies deemed a threat to national security from selling telecom equipment in the US. The Secure Equipment Act, passed by both houses of Congress in October, will see the FCC extend a ban on suspect network equipment in federal-funded networks to cover also new equipment purchased with private or other public funds. The law targets products from Chinese suppliers such as Huawei, ZTE and Hytera, which are considered a risk to US security due to their ties to the Chinese government.

The Secure and Trusted Communications Networks Act of 2019 laid out detailed criteria for determining what communications equipment or services pose an unacceptable risk to US safety. Since that law was passed, US telecom operators receiving federal funds must replace any suspect equipment on their networks. Congress has provided nearly USD 2 billion for the so-called 'rip and replace' programme. 

The risky equipment is identified by the Public Safety and Homeland Security Bureau and put on a so-called Covered List maintained by the FCC. The new law prohibits the authorization of equipment from companies on the Covered List through the FCC’s certification processes. Without that authorisation, no product can be sold in the US, meaning it cannot be acquired by privately funded operators either. 

The FCC already started working in June on implementing the new rules. The plan still requires final approval from the Commission before it takes effect. 

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