The FCC voted unanimously to bar U.S.
telecommunications providers from using
government subsidies to buy equipment
from Huawei or ZTE. The FCC’s order mostly
affects small, rural companies, as larger U.S.
carriers do not use equipment from those
Chinese companies.
In a statement, Huawei urged the FCC to
reconsider what it called a “profoundly
mistaken” and “unlawful order.”
It said the decision was “based on selective
information, innuendo, and mistaken
assumptions” and that “these unwarranted
actions will have profound negative effects
on connectivity for Americans in rural and
underserved areas across the United States.”
As for replacing existing equipment, the
FCC is asking for comment on how to help
rural telecoms financially. Bills in Congress
have proposed setting $700 million to
$1 billion aside.
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.)
The group said that it was “cautiously
optimistic” that the FCC’s approach would
let its companies keep providing services to
customers and give them funding to replace
any banned equipment.
The Huawei statement said the lack of funding
would hurt rural and disadvantaged communities.