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FCC bans new telecom gear from Huawei and ZTE

By Rajiv Menon
3 min read
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For years, even before 2019 when Huawei was placed on the Entity List banning it from access to its American supply chain (including Google), the company was considered a national security threat along with ZTE. The Chinese phone and telecom equipment makers were often accused of putting backdoors in their handsets and equipment, allowing them to obtain confidential information and send it to servers in Beijing. Both firms denied the allegations multiple times.

Axios reports that the FCC announced new rules banning U.S. sales and imports of new telecommunications equipment made by both Huawei and ZTE.  In a tweet, FCC Commissioner Brendan Carr wrote, “Today, the FCC takes an unprecedented step to safeguard our networks and strengthen America’s national security. Our unanimous decision represents the first time in FCC history that we have voted to prohibit the authorization of new equipment based on national security concerns.”

To be clear, the ban affects new equipment only. Gear that has already received FCC approval can still be shipped to the states.
FCC Chairwoman Jessica Rosenworcel added, “These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications.” Huawei told Axios that it had no comment and ZTE had yet to respond. Huawei and ZTE are among the largest suppliers of telecom equipment worldwide. Last year, the FCC voted to spend $1.9 billion to rip out Huawei and ZTE equipment already used by rural wireless firms.
In 2019, a law was passed forcing carriers that receive federal subsidies to purge their networks of equipment supplied by companies considered threats to U.S. national security. Most rural carriers are subsidized by the Universal Service Fund (USF). The USF is funded by fees charged to subscribers of wireless providers and is managed by the FCC.
The FCC was given one year after the passage of the Secure Equipment Act last November to vote on the order to ban Huawei and ZTE gear. Besides the two familiar names to phone enthusiasts, three lesser-known Chinese firms are affected by the order. These companies include telecom firm Hytera Communications, surveillance equipment producer Dahua Technology, and video surveillance firm Hangzhou Hikvision Digital Technology.
Hikvision released a statement that says, “This decision by the FCC will do nothing to protect U.S. national security, but will do a great deal to make it more harmful and more expensive for U.S. small businesses, local authorities, school districts, and individual consumers to protect themselves, their homes, businesses and property.” The company will continue to do business with its U.S. customers “in full compliance” of U.S. regulations.
This year the four bipartisan FCC commissioners have voted unanimously on robocall enforcement and on plans for spectrum-sharing. And now, the four have all voted in favor of banning new Huawei and ZTE telecom gear from entering the U.S.

Questions & Answers

Q.

Which specific companies are affected by the new FCC ban on telecommunications equipment?

A.

The new ban primarily targets Huawei and ZTE. Also, three other Chinese firms are impacted: Hytera Communications, Dahua Technology, and Hangzhou Hikvision Digital Technology, which produce telecom and surveillance equipment.

Q.

Does this ban mean all Huawei and ZTE equipment currently in the US must be removed?

A.

No, the ban only affects new equipment. Gear that has already received FCC approval can still be shipped to the states. Separately, there is an ongoing process to rip out existing equipment.

Q.

What is the estimated total cost for removing existing Huawei and ZTE equipment from US networks?

A.

The total estimated cost for removing existing equipment is $5.6 billion. The FCC initially voted to spend $1.9 billion, but more recently indicated that an additional $3 billion would be needed to complete the task.

Q.

How did the FCC manage to pass this ban given its current composition?

A.

The FCC has four commissioners, two Democrats and two Republicans. They voted unanimously on this decision, demonstrating bipartisan agreement despite the typical five-member structure being incomplete due to a stalled confirmation.

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