FCC Tells US Telcos: Buy Chinese Kit And You Won't See Another Dime From Us
Arthur T Knackerbracket has found the following story:
America's broadband watchdog has told telcos they cannot use government subsidies to buy any more Huawei or ZTE equipment.
The FCC is also mulling extending this ultimatum to include the continued use of the Chinese manufacturers' gear, meaning cellular and internet providers will have to replace their installed Huawei and ZTE boxes, as well as vow not to purchase any of the kit, if they wish to receive funding from the US government.
Specifically, the five-member commission voted unanimously on Friday to bar US telcos from using cash from the Universal Service Fund to purchase stuff made by either of the Chinese telecoms giants.
The USF is an $8.5bn nationwide fund that subsidizes telcos that provide service in rural and poor areas, schools, and libraries. Even the larger network providers tap into this piggy bank, so the crackdown on Huawei and ZTE purchasing reaches right across the market.
[...] The decision comes on the heels of what was seen as a reprieve of sorts for Huawei when, earlier this week, the FTC granted a third extension on the trade ban on the switch slinger, letting certain US companies continue to do business with the biz. One of those corporations, Microsoft, just announced it was going to be able to continue selling its software to Huawei.
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