FCC Staff Deems Huawei, ZTE Part of USF Spending Ban

The $8.3 billion annual USF "may no longer be used to purchase, obtain, maintain, improve, modify, or otherwise support any equipment or services produced or provided by" Huawei and ZTE, the FCC announced Tuesday afternoon. The Public Safety Bureau designated the Chinese telecom gear makers as covered under the commission's 5-0 November ban on buying from companies posing a national security threat.

This was "based on the overwhelming weight of evidence," said FCC Chairman Ajit Pai. “Both companies have close ties to the Chinese Communist Party and China’s military apparatus, and both companies are broadly subject to Chinese law obligating them to cooperate with the country’s intelligence services." This release and related actions are here.

"Network security is national security" and this helps "secure our networks against new threats from Huawei and ZTE equipment," said Commissioner Geoffrey Starks. "We must prioritize our review of our recent information collection and establish an expedited plan for the removal and replacement of untrustworthy equipment." The other FCC members didn't immediately comment.

Huawei and ZTE didn't comment. Nor did China's embassy.