FCC rules Huawei and ZTE are a threat to national security

The US watchdog 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.

According to Reuters news agency, the FCC unanimously approved the provision. By labeling Huawei and ZTE as a risk to national security, telecom providers can no longer purchase equipment using a dedicated government fund. As a result, the providers have to look for alternatives, including for building their 5G networks.

The FCC also wants to submit a proposal that would oblige carriers to replace equipment from Huawei and ZTE in their networks. That proposal should be ready sometime next year, after which it can be voted on. Replacing the equipment would cost about $2 billion.

It is possible that American politics will make part of that money available to purchase replacement equipment. Incidentally, providers are not completely excluded from buying equipment from Huawei or ZTE: for applications where their hardware is necessary, it remains possible to make a purchase.

The United States has been trying to complicate Huawei’s business operations for some time. Previously, the company was already banned from trading, which means that American companies are not allowed to do business with Huawei. Incidentally, this ban has been suspended a number of times.