FCC redesignated ZTE as a national security threat

The FCC of the US Federal Communications Commission redesignated ZTE as a national security threat, fearing that communications equipment manufactured by Chinese companies would be used for espionage.

On July 1, 2020, the FCC designated Huawei and ZTE as national security threats, and the decision made it impossible for Huawei and ZTE to purchase or maintain telecommunications equipment using the FCC-managed Universal Service Fund. The fund’s budget is $8.3 billion annually, which is being used by a number of small operators to overhaul their networks.

In response, Huawei and ZTE objected and demanded a review, but the FCC again announced that ZTE was designated as a national security threat. In response to the decision, Bloomberg said the decision shows the FCC’s determination to oust Huawei and ZTE from small local carriers that are forced to rely on inexpensive network equipment.

The FCC’s designation as a national security threat is limited to ZTE, and it is extending the decision deadline until December 11 for an appeal by Huawei. FCC Pie Chairman said ZTE would be an important step in an ongoing effort to protect US telecommunications networks from security risks in the face of designated national security threats.

In addition, in his Twitter account, Chairman Pai inquired about whether Chinese law required companies to provide access and cooperation support for government information gathering activities. ZTE said there was no objection. It is being pointed out again.

According to FCC estimates, telecom operators are using this fund to purchase Huawei or ZTE equipment and build networks. The FCC has decided to seek funding to replace these equipment with safe manufacturer products, but the cost of the replacement will be between $40 million and $45 million. Related information can be found here .