The Los Angeles Post

FCC chief aims to ban Huawei, ZTE from federal program

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Federal Communications Commission (FCC) Chairman Ajit Pai on Monday announced a two-part proposal that would ban the use of FCC funds for equipment from companies deemed national security threats, including Chinese telecommunications companies Huawei and ZTE.

What the FCC will consider: The first proposal would bar U.S. telecom providers from using money from the FCC’s $8.5 billion Universal Service Fund (USF) to purchase equipment from telecom companies deemed national security threats, and would designate Huawei and ZTE as companies that pose a threat It would also create a process to designate other companies as threats in the future.

The second proposal would require U.S. telecom providers that have used money from the USF to rip out equipment from designated companies including Huawei and ZTE. It would also call for an assessment of how much equipment from Huawei and ZTE is already integrated into networks, and how much it would cost to rip out.

As part of the proposals, the FCC will also look to establish a “reimbursement program” to help telecom carriers implement the changes. A senior FCC official told reporters during a call on Monday that money from the USF is used by hundreds of U.S. telecom providers.

Timeline: The FCC will vote on whether to approve the proposals during its next full commission meeting on Nov. 19.

Pai’s pitch: “When it comes to 5G and America’s security, we can’t afford to take a risk and hope for the best,” Pai said. “We need to make sure our networks won’t harm our national security, threaten our economic security, or undermine our values.”

Pai added that “as the United States upgrades its networks to the next generation of wireless technologies — 5G — we cannot ignore the risk that the Chinese government will seek to exploit network vulnerabilities in order to engage in espionage, insert malware and viruses, and otherwise compromise our critical communications networks.”

Neither Huawei nor ZTE immediately responded to request for comment.