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November 22, 2019 08:10 pm

FCC Bars Huawei, ZTE From Billions in Federal Subsidies

The US Federal Communications Commission on Friday voted to bar use of its $8.5 billion a year Universal Service Fund to purchase equipment and services from Huawei and ZTE. The government fund is used by multiple programs to subsidize US broadband deployment and services. From a report: In a unanimous vote during its November open meeting, the FCC approved an order that blocks the use of USF funds to purchase equipment and services from companies that pose a national security threat. The order also establishes a process for barring more companies in the future. So far, just Huawei and ZTE are on the list. "Given the threats posed by Huawei and ZTE to America's security and our 5G future, this FCC will not sit idly by and hope for the best," said FCC Chairman Ajit Pai in a statement Friday.

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