The agency is also exploring the impact of
requiring companies to rip out their current
Huawei and ZTE equipment. The government
is seeking comments on how it can help
companies financially if they have to do
that. Bills in Congress have proposed setting
$700 million to $1 billion aside for telecom
companies to replace their networks.
A trade group for small rural wireless carriers
has said that it would cost up to $1 billion
for its dozen companies to replace their
Huawei and ZTE equipment. It says that
Huawei has 40 customers in the U.S. (Huawei
is also a member of the trade group, the Rural
Wireless Association).
Huawei and ZTE did not immediately respond
to requests for comment on the FCC proposal.
The U.S. government has said that Huawei
poses an espionage threat, but has presented
no evidence of its equipment being used
for spying by the Chinese government. The
company denies that its equipment is used for
such purposes. ZTE has also denied that China
uses its products for spying. A congressional
report in 2012 labeled both Chinese companies
as security risks.
The U.S. government also has been pressuring
allies to ban Huawei from their networks
and has restricted exports of U.S. technology
to Huawei. Huawei is the world’s biggest
supplier of telecom gear as well as a major
cellphone manufacturer.