The FCC’s move to block telecoms from using USF funds to purchase equipment from Huawei and ZTE could make it more difficult for smaller companies to provide affordable services.
By designating Huawei and ZTE as threats to US national security, the FCC bars telecommunications providers from using government subsidy money through the $8.3 billion Universal Service Fund to purchase equipment from the companies for their networks.
“With today’s Orders, and based on the overwhelming weight of evidence, the Bureau has designated Huawei and ZTE as national security risks to America’s communications networks — and to our 5G future,” FCC Chairman Ajit Pai said in a statement Tuesday.
On Tuesday, the Federal Communications Commission officially designated telecommunications companies Huawei and ZTE as threats to national security.
Over the last few years, the federal government has called for Chinese-linked telecom companies like Huawei and ZTE to be banned from the US over concerns of espionage and national security.
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