Huawei fights to keep US funds flowing to its rural mobile customers
- Telecoms giant argues against proposed Federal Communications Commission ban on US firms using government funds to buy Huawei gear for their networks
- Rural Wireless Association estimates it would cost US$800 million to US$1 billion for all members to replace equipment bought from Huawei and ZTE
China’s Huawei Technologies, the world’s biggest telecoms equipment maker, argued on Wednesday that Washington should scrap plans to prohibit wireless companies from using US government funds to buy Huawei gear for their networks.
Federal Communications Commission (FCC) chairman Ajit Pai said in March 2018 that he was proposing banning the use of money from its Universal Service Fund to buy equipment or services from companies that pose a security threat to US communications networks. Pai identified Huawei as a company of concern in a letter to Congress.
The rule has not gone into effect, although Pai reiterated support for it in a congressional hearing last month. A commissioner also asked for comment on whether existing gear from companies of concern should be removed from US telecommunications networks.
Huawei argued in a filing to the FCC on Wednesday that the proposed rule would do nothing to protect national security, and could destabilise rural networks if they are required to rip out Huawei equipment they installed years ago.
“Huawei cannot and will not sabotage its customer networks. But recent actions by the United States government are only one step away from doing so,” Huawei said in its filing.
The Rural Wireless Association has estimated that it would cost US$800 million to US$1 billion for all members to replace equipment bought from China’s Huawei and ZTE.
