According to a new report from The Wall Street Journal, the Federal Communications Commission is contemplating a new rule that would prevent small and rural mobile providers from receiving federal subsidies if they utilize electronics from Chinese manufacturers including Huawei and ZTE. It’s possible the rule will be proposed as soon as Monday, according to the Journal, but it could also be postponed or shelved. If the FCC moves forward and unveils the rule, it would be the latest measure used by the US government and regulatory agencies to hinder Huawei’s business prospects in the United States.
The FCC proposal would reportedly block carriers that use equipment from Huawei or ZTE from drawing from the Universal Service Fund, a government program that subsidizes companies providing broadband in rural areas often ignored by some of the larger wireless carriers. Huawei accounts for less than 1 percent of the hardware used by US wireless networks, according to an analyst that the Journal spoke to. But the US wants to prevent it from gaining any additional share — especially as providers prepare for the rollout of 5G over the coming months and years.
Fears of state-sponsored spying and cyberattacks have already led to canceled carrier deals with AT&T and Verizon Wireless for the Mate 10 Pro. Intelligence agencies have warned American citizens against purchasing the company’s gadgets. There’s a bipartisan bill being floated in Congress that would ban the government and its contractors from using them. And just this week, Best Buy made the announcement that it will no longer sell Huawei products.
At a Senate Intelligence Hearing last month, FBI director Christopher Wray said the government remains “deeply concerned about the risks of allowing any company or entity that is beholden to foreign governments that don’t share our values to gain positions of power inside our telecommunications networks.”
Huawei continues to insist that it poses no threat to US national security and isn’t a spying backdoor for China.
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