FCC chair Ajit Pai has proposed to bar U.S. communications companies from using federal subsidies to buy Huawei and ZTE equipment and services, the latest push to block Chinese-owned telecommunications equipment and services from being used in the U.S. due to national security concerns.
Pai’s proposal would prevent communications companies from using the FCC’s $8.5 billion service fund, known as the Universal Service Fund, from buying equipment that poses a “national security threat” to the U.S. He specifically cites Huawei and ZTE. The order would also force companies to remove Huawei and ZTE equipment from their networks if they have already purchased it, and create a process to designate other suppliers that pose a national security threat.