U.S. lawmakers propose $1 billion fund to replace Huawei equipment

Reuters Finance 1 month ago

WASHINGTON (Reuters) - A U.S. House panel unveiled bipartisan legislation this week that would authorize $1 billion for small and rural wireless providers to replace network equipment from companies including Huawei Technologies Co Ltd [HWT.UL] and ZTE Corp that lawmakers say pose a national security risk.

The legislation is similar to a bill approved in July by the U.S. Senate Commerce Committee that would authorize about $700 million in grants to remove Huawei equipment, in a bid to boost the security of the U.S. telecommunication network’s supply chain.

The top Democrats and Republicans on the House Energy and Commerce Committee said in a joint statement the bill would protect the “nation’s communications networks from foreign adversaries by helping small and rural wireless providers root-out suspect network equipment and replace it with more secure equipment.”

The panel will hold a hearing on the bill Friday. Huawei did not immediately comment.

About a dozen rural U.S. telecom carriers that depend on Huawei for network gear were in discussions with its biggest rivals, Ericsson and Nokia, to replace their Chinese equipment, sources familiar with the matter told Reuters in June.

In May, President Donald Trump signed a long-awaited executive order declaring a national emergency and barring U.S. companies from using telecommunications equipment made by firms posing a national security risk. The order directed the Commerce Department, working with other government agencies, to draw up an enforcement plan by October.

The U.S. government blacklisted Huawei in May, alleging the Chinese company was involved in activities contrary to U.S. national security or foreign policy interests. In August, the Commerce Department added more than 40 additional Huawei’s units to its economic blacklist, raising the total to more than 100 Huawei entities covered by the restrictions.

The House bill would prohibit the use of federal funds to purchase communications equipment or services from any company that poses a national security risk to American communications networks. It would also require the Federal Communications Commission (FCC) to assist small communications providers with the costs of removing prohibited equipment or services from their networks and replacing the prohibited equipment.

A defense bill approved last year places a broad ban on the use of federal money to purchase products from Huawei and the White House said in June it would meet a two-year deadline to comply with the ban.

In April 2018, the FCC voted unanimously to advance new rules to bar the use of funds from a government program to purchase equipment or services from companies that pose a security threat to U.S. communications networks including Huawei. The proposal is still pending.

While large U.S. wireless companies have severed ties with Huawei, some small rural carriers are still dependent on inexpensive Huawei and ZTE switches and equipment.

The Rural Wireless Association, which represents carriers with fewer than 100,000 subscribers, estimates that 25% of its members have Huawei and ZTE equipment in their networks, and has said it would cost $800 million to $1 billion to replace it.

Source link
Read also:
Reuters › Finance › 3 weeks ago
Blacklisted Chinese telecoms equipment giant Huawei is in early-stage talks with some U.S. telecoms companies about licensing its 5G network technology to them, a Huawei executive told Reuters on Friday.
The New York Times › Finance › 2 weeks ago
The U.S. telecommunications regulator plans to vote in November to designate China's Huawei and ZTE as national security risks, barring their U.S. rural carrier customers from tapping an $8.5 billion government fund to purchase equipment or services.
Business Insider › Technology › 1 month ago
Huawei's Mate 30 smartphones won't have access to Google's Play Store for the usual choice of apps that Android users outside of China are used to. Huawei's own app store only has three recognizable apps with mass appeal, including Amazon, TikTok, and...
CNN › Technology › 1 month ago
A bipartisan group of House lawmakers is proposing to give small and rural wireless network operators $1 billion to tear out telecom gear produced by Huawei and other Chinese providers that US officials consider a national security risk.
Sputnik International › Technology › 1 month ago
Washington has been accusing Huawei of using its equipment for spying purposes, pressuring other nations to give up using the Chinese giant's infrastructure for the new generation of 5G networks. Huawei has rejected the allegations, saying the...
One America News Network › Finance › 3 weeks ago
By Alexandra Alper WASHINGTON (Reuters) - Blacklisted Chinese telecoms equipment giant Huawei is in early-stage talks with some U.S. telecoms companies about licensing its 5G network technology to
Washington Post › Finance › 1 month ago
Several years ago, Pine Telephone spent $32 million on equipment from the Chinese tech giant Huawei to bring Internet service to its portion of rural Oklahoma. The move helped create a Web-fueled tourism industry where unemployment was 12 percent. Now Pin
Reuters › Finance › 2 weeks ago
The U.S. Federal Communications Commission (FCC) plans to vote in November to designate Huawei Technologies Co and ZTE Corp as posing national security risks and to bar the use of funds from an $8.5 billion government program to purchase equipment or...
CNET › Technology › 2 weeks ago
The agency is also looking to require rural carriers to rip and replace their Huawei and ZTE gear and ways to fund that effort.
Business Insider › Finance › 3 weeks ago
According to a Wall Street Journal report from Rob Copeland and Katie Roof on Monday, Peter Thiel's venture firm Founders Fund is raising nearly $3 billion in new funding. A whopping $1.5 billion will be dedicated to investing in late-stage growth...
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google