The US Federal Communications Commission (FCC) has adopted an order that barrs its USD 8.5 billion per year Universal Service Fund (USF) from being used to purchase equipment and services from companies that pose a national security threat. The order specifically designates Huawei and ZTE as the target of this rule. Companies receiving USF funds will have to remove and replace equipment if it is from the designated companies. The FCC will now determine how much targeted equipment USF carriers might have and what the costs will be to remove and replace equipment.
There will be a certification and audit regime to enforce the new rule. A Further Notice to the Order seeks comment on how to pay for the removals and replacement.
The FCC noted the desire to eliminate security “backdoors” in the country’s communication networks, in order to reduce the risk of espionage, malware and data theft. Because Huawei and ZTE have close ties to the Chinese government and military apparatus, they could pose such a threat, the FCC said.
Huawei reiterates it poses no security risk
Huawei issued a statement, saying it believes the order is unlawful and has urged the FCC to refrain from finalising this designation of Huawei, and to rethink the order, LightReading reported.
Huawei said it has been singled out by the FCC as a security risk but that the body has provided no evidence the company poses a security risk. Instead, the FCC simply assumes, based on a mistaken view of Chinese law, that Huawei might come under Chinese government control. Huawei said it remains open to engaging with the US government on the verification of its services and systems in order to safeguard US telecommunications systems. Huawei said it would never breach its customers' trust.
