Bureau Designates Huawei, ZTE as National Security Threats

摘要

The FCC's Public Safety and Homeland Security Bureau on June 30 issued final designations of Huawei Technologies Co. and ZTE Corp. as companies posing a national security threat to U.S. communications networks or the communications supply chain, which means recipients of Universal Service Fund support cannot use that funding to purchase or otherwise support equipment or services supplied by Huawei or ZTE, effective immediately. In defending its decision to make the prohibition on use of USF support effective immediately, the bureau said, "Nothing in the Commission's rule or the Secure Networks Act requires the Commission to continue funding equipment and services posing a national security threat to communications networks or the communications supply chain until a reimbursement mechanism is established. On the contrary, the Secure Networks Act directs the Commission to prohibit the use of USF funds for covered equipment and services within 180 days after its enactment, while providing the Commission one year to complete the rulemaking to establish the reimbursement program. Additionally, this designation does not require any USF recipient to remove and replace existing equipment. Rather, the effect of this designation is merely to prohibit the future use of USF support to purchase, obtain, maintain, improve, modify, or otherwise support any such equipment or services."