The FCC has asked providers that use the Universal Service Fund to provide data on Huawei and ZTE equipment, including the cost for their replacement.
Background: The US was the first country to implement restrictions on the use of Chinese equipment in telecoms networks, citing national security concerns. The ban came amid rising tensions on trade between the two countries, which resulted in tariffs being imposed in the last two years by both sides. The US also put pressure on other countries to implement a ban on Chinese equipment, particularly from Huawei. In November 2019, the Federal Communications Commission (FCC) decided to prevent carriers receiving money from the Universal Service Fund purchasing equipment from companies they considered posed a security threat.
The FCC begins the process ahead of the final designation: Huawei and ZTE have been “initially designated” as threats to national security in the US. The decision is expected to be finalised in April 2020. Meanwhile, the FCC is already starting to collect data from carriers (including their affiliates and subsidiaries) eligible for the Universal Service Fund, on whether they own or are using equipment or services from Huawei or ZTE, the type of such equipment or services, the costs associated with purchasing and installing such equipment and services, and the costs associated with removing and replacing such equipment and services. Since many of these operators are small, rural providers, the FCC is proposing a reimbursement program to offset any transition costs.
Other carriers may participate: The FCC made it mandatory for Universal Service carriers to provide the information required. This must be submitted by 22 April 2020. Other operators not eligible for Universal Service Funds can still participate on a voluntary basis. The FCC has launched a portal through which this information will be submitted.
