- Many small American companies rely on their cheap network equipment.
- The agency is considering a ban on three Chinese telephone companies
Jul 01, 2020, 12:07 PM IST
New York. The US Federal Communications Commission (FCC) has halted funding of Chinese company Huawei and ZTE Corporation as threats to national security. The FCC has stated that this step has been taken to exclude these Chinese companies from the US market because many smaller companies rely on their cheap network equipment. The FCC states that both Huawei and ZTE companies have close ties with the Chinese Communist Party and the Chinese Military Weapons Group.
China can use Huawei's equipment for espionage
- FCC President Ajit Pai said on Twitter- The US government and this FCC in particular, cannot allow the Chinese Communist Party to take advantage of the weaknesses of America's communication network.
- He also shared a letter on Twitter, based on evidence that the bureau has called Huawei and ZTE a threat to America's communications network and national security. He said the FCC's $ 8.3 billion annual Universal Service Fund cannot be used to purchase equipment or services from these suppliers. This fund is a collection of subsidies through which the US government promotes access to the telecom service. The US says that China could use Huawei's equipment to spy.
BREAKING NEWS: The @FCC has designated #Huawei and #ZTE as companies posing a national security threat to the United States. As a result, telecom companies cannot use money from our $ 8.3B Universal Service Fund on equipment or services produced or provided by these suppliers. 1/5 pic.twitter.com/dH6QK4jbd4
– Ajit Pai (@AjitPaiFCC) June 30, 2020
FCC may also ban three Chinese telecom companies
- As tensions between Washington and Beijing escalate, the FCC has increasingly scrutinized Chinese companies on coronovirus and security issues. The agency is considering a ban on three Chinese telephone companies. Last year, China Mobile Limited was banned for entry into the US market.
The average expense of converting equipment will come to $ 45 million
- The FCC reported that about three dozen or four dozen rural companies take subsidies and use equipment from Huawei or ZTE. He said a firm's average cost to replace equipment can range from $ 40 million to $ 45 million.
FCC Says $ 2 Billion for Replacement Program
- FCC Commissioner Geoffrey Starks said in a statement on Tuesday that "unbelievable equipment" has been installed at many places and the FCC has been asked to run the replacement program.
Pai described Congress spending $ 2 billion on June 24 as a full-scale rip-and-replace program. The FCC said that we need funds so that we can work faster to implement this program.