US FCC Classifies Huawei and ZTE as Security Threats, Cuts off Funding

The two Chinese companies will no longer be used as suppliers for projects under the FCC’s Universal Service Fund.

Share on Facebook Tweet Snapchat Share Reddit Comment
US FCC Classifies Huawei and ZTE as Security Threats, Cuts off Funding
Highlights
  • US FCC Classifies Huawei and ZTE as Security Threats
  • The companies are banned as suppliers for projects subsidised by the FCC
  • 'With this decision, we are sending a clear message': FCC Chairman

US FCC has classified Huawei and ZTE as security threats, and banned them as suppliers for projects under its Universal Service Fund, because of alleged ties to Chinese military and intelligence services. The Federal Communications Commission is the US agency that regulates all communications technology. In a news release explaining the decision, the FCC said that this is a step to protect US networks fro security risks. The two companies have been banned as suppliers under the FCC's Universal Service Fund. The fund is a collection of subsidies through which the US government can promote access to telecom services.

In the release, the FCC stated: “As a result of today's action, money from the FCC's $8.3 billion (approximately Rs. 62,676 crore) a year Universal Service Fund may no longer be used to purchase, obtain, maintain, improve, modify, or otherwise support any equipment or services produced or provided by these suppliers.“

“With today's Orders, and based on the overwhelming weight of evidence, the Bureau has designated Huawei and ZTE as national security risks to America's communications networks—and to our 5G future,” FCC Chairman Ajit Pai said in the release. “Both companies have close ties to the Chinese Communist Party and China's military apparatus, and both companies are broadly subject to Chinese law obligating them to cooperate with the country's intelligence services.”

“The Bureau also took into account the findings and actions of Congress, the Executive Branch, the intelligence community, our allies, and communications service providers in other countries. We cannot and will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our critical communications infrastructure,” he added.

This comes just a day after the Indian government issued an order banning 59 apps from China, including TikTok, for reasons of national security, However, the government has taken no action against Chinese hardware providers at this point.

In a series of tweets, US FCC Chairman Ajit Pai noted that the two companies have been designated as a security threat, and added that the decision was made with input from “Congress, Executive Branch, intelligence community, allies, and communications service providers.” He concluded by saying, “With this decision, we are sending a clear message: the U.S. Government, and this FCC in particular, cannot and will not allow the Chinese Communist Party to exploit vulnerabilities in U.S. communications networks and compromise our critical communications infrastructure.”


WWDC 2020 had a lot of exciting announcements from Apple, but which are the best iOS 14 features for India? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: FCC, Ajit Pai, Huawei, ZTE
Gopal Sathe Gopal Sathe is the Editor of Gadgets 360. He has covered technology for 15 years. He has written about data use and privacy, and its use in politics. He has also written extensively about the latest devices, video games, and startups in India. Write to gopal@ndtv.com or get in touch on Twitter through his handle @gopalsathe with tips. More
Samsung Galaxy S20+, Galaxy Buds+ BTS Edition Models Launched in India: Price, Specifications
Cisco Accused of Job Discrimination Based on Indian Employee's Caste

Related Stories

 
 

Advertisement

Advertisement

© Copyright Red Pixels Ventures Limited 2020. All rights reserved.
Listen to the latest songs, only on JioSaavn.com