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在线翻译:
szdaily -> Business/Markets -> 
Huawei, ZTE face US ban on subsidy fund
    2019-10-30  08:53    Shenzhen Daily

THE U.S. telecommunications regulator plans to vote in November to designate Huawei and ZTE as “national security risks,” barring their U.S. rural carrier customers from tapping a US$8.5 billion government fund to purchase their equipment or services.

The Federal Communications Commission (FCC) also plans to propose requiring those carriers to remove and replace equipment from such designated firms, FCC officials said.

At a meeting set for Nov. 19, the FCC said it plans to vote to ask U.S. carriers how much it would cost to remove and replace Huawei Technologies Co. and ZTE Corp. from existing networks and to establish a reimbursement program to offset the costs of removing the equipment.

This is the latest in a series of actions by the U.S. Government aimed at barring U.S. companies from purchasing Huawei and ZTE equipment. Huawei and ZTE would have 30 days to contest the FCC’s national security risk designation and a final order compelling removal of equipment is not expected until next year at the earliest.

“In 30 years of business, Huawei has never had a major security-related incident in the 170 countries where we operate,” said a Huawei spokesman in Shenzhen.

“Today’s proposal, released by the FCC chairman, only impacts the broadband providers in the most unserved or underserved rural areas of the United States,” the spokesman said. “Such action will further widen the digital divide, slowing the pace of economic development without further securing the nation’s telecommunications networks.”

FCC Chairman Ajit Pai first proposed in March 2018 to bar companies that posed a national security risk from receiving funds from the FCC’s Universal Service Fund, but did not name Huawei or ZTE. The fund provides subsidies to provide service in rural or hard-to-reach areas, and to libraries and schools.

U.S. Congress has been considering legislation to authorize up to US$1 billion for small and rural wireless providers to replace network equipment from the Chinese companies. The FCC could tap the fund itself to pay for replacing equipment if Congress does not act.

About a dozen rural U.S. telecom carriers that depend on inexpensive Huawei and ZTE switches and equipment were in discussion with Ericsson and Nokia to replace their Chinese equipment, Reuters reported in June. (SD-Agencies)

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