Operators using the Universal Service Fund will have access to at least $1.6bn to meet the cost of replacing equipment from restricted vendors.
A bipartisan vote: On 10 December 2020, the Federal Communications Commission (FCC) adopted the rules for operators removing equipment from vendors identified as threats to national security (Chinese vendors Huawei and ZTE which were formally identified as such in June 2020). FCC commissioners approved the rules unanimously, which suggests that a Democrat-led FCC may not change its stance on Chinese vendors.
A $1.6bn price tag: The order establishes a funding programme to replace the equipment, which the FCC has estimated to require at least $1.6bn. The FCC will make a list of equipment at a risk, which will have to be removed and disposed of by the operators that use the Universal Service Fund. Operators must also indicate whether they are using equipment from these vendors acquired after 14 August 2018 (date on which the FCC published the initial list of restricted equipment).
The crackdown on China continues: On the same day, the FCC initiated proceedings to revoke China Telecom’s authorisation to operate in the US, and denied Huawei a review of the order designating it as a national security threat. Huawei will legally challenge the decision.
