The FCC approve a measure that would deny subsidies to carriers who use equipment from Huawei, ZTE, or any other “bad actors.” The FCC’s Universal Service Fund has $8.5 billion ready to subsidize carriers in making improvements to the communications infrastructure in the US, but none of the cash will go to those using equipment from companies considered a “national security threat.”
Huawei, unsurprisingly, isn’t happy with the decision, calling it “unlawful” in a statement. According to the Wall Street Journal, it’s preparing to follow this up with lawsuit challenging the FCC’s action.
Huawei says the FCC’s branding of it as a threat was “based on selective information, innuendo, and mistaken assumptions.” It added that the decision “will have profound negative effects on connectivity for Americans in rural and underserved areas across the United States.” With many smaller operators already using Huawei’s equipment, it’s unlikely that they’ll have the money to replace it.
“The FCC has singled out Huawei based on national security, but it provides no evidence that Huawei poses a security risk. Instead, the FCC simply assumes, based on a mistaken view of Chinese law, that Huawei might come under Chinese government control,” the company wrote.
The Wall Street Journal reports that the filing will be made next week in the fifth circuit court of appeals in New Orleans.
