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FCC intends to use US$1.6 billion to compensate operators who replace Huawei and ZTE equipment

Feb 02 55
According to msn reports, the US Federal Communications Commission (FCC) has taken further measures to force suppliers to exclude Huawei and ZTE equipment from network construction. The committee members listed the prohibited equipment with a 5-0 vote.

It is reported that the FCC also simultaneously launched a subsidy program to compensate qualified small operators for replacing telecommunications equipment. The FCC is now waiting for Congress to allocate funds, and it is estimated that this compensation will be as high as $1.6 billion.

According to the plan, once the funds are in place, the subsidized operators must remove such equipment or services from their networks and properly dispose of them.

The FCC announced in June that it had formally identified China’s Huawei and ZTE as threats. This action meant that US companies were prohibited from using US$8.3 billion in government funds to purchase equipment from these companies. The FCC reconfirmed that ZTE constituted a national security threat last month.

The FCC also rejected Huawei's request to reconsider listing the company as a national security threat on Thursday, local time.

At the same time, the FCC said it has initiated the process of revoking China Telecom's operating license in the United States.