FCC ban U.S. telecommunications suppliers from using government subsidies to purchase Huawei or ZTE equipment

Recently, the Federal Communications Commission voted unanimously to bar U.S. telecommunications suppliers from using government subsidies to purchase Huawei or ZTE equipment and asked these suppliers to update such equipment they have installed. The ban aims to reduce US national security risks.

It is understood that the ban will affect at least 40 telecommunications suppliers, most of which are small suppliers in rural areas of the United States. The cost of replacing Huawei and ZTE equipment may be as high as $1 billion, so the US government may allocate $ 700 million to $1 billion to support this equipment update.

Huawei responded that the move will reduce the quality of network services in rural areas in the United States and increase the price of such services. ZTE has not issued a statement on the ban.