Huawei has challenged the United States Federal Communications Commission in court for banning telcos from purchasing its equipment using the Universal Service Fund. The FCC said Huawei and ZTE pose national security threats to the United States, and put new restrictions on subsidies that are dedicated toward expanding broadband to rural and underserved areas of the country.
The Chinese network equipment maker filed a petition with the Fifth Circuit, requesting that it hold the FCC’s order as unlawful, for circumventing due process. It accuses the FCC of exceeding its statutory authority and violating federal law by failing to substantiate its findings with “evidence or sound reasoning or analysis.”