US Regulator Approves Huawei, ZTE Subsidy Ban Citing Security Concerns

US Regulator Approves Huawei, ZTE Subsidy Ban Citing Security Concerns

The US Federal Communications Commission (FCC) on Friday voted in favor of banning Chinese companies Huawei and ZTE from a government telecom subsidy program

WASHINGTON (Pakistan Point News / Sputnik - 23rd November, 2019) The US Federal Communications Commission (FCC) on Friday voted in favor of banning Chinese companies Huawei and ZTE from a government telecom subsidy program.

"FCC initially designates Huawei and ZTE as companies posing a national security threat, the first of two steps in determining that their equipment is ineligible for purchase with Universal Service funding," the FCC said in a tweet.

The United States has previously banned both Huawei and ZTE from most government contracts due to connections by both to Chinese intelligence and the relative ease with which telecommunications equipment can be manufactured with so called backdoor access for spying.

The Universal Service Fund dates back to a 1934 law requiring telephone access to all American households. The fund subsidizes service to low income customers as well as other users such as rural health agencies, schools and libraries.