Wednesday, 11 December 2019

Huawei to fight FCC decision on rural subsidies in the US

By Chris Kelly, Total Telecom
Friday 29 November 19

Reports in the press suggest that Huawei will launch legal action in the US next week

Huawei is set to challenge the Federal Communications Commission's decision to bar Huawei's customers from accessing an $8.5 billion fund intended to boost rural connectivity in the US…

Huawei is set to challenge the Federal Communications Commission's decision to bar Huawei's customers from accessing an $8.5 billion fund intended to boost rural connectivity in the US, according to reports in the press.

The US government is currently working on legislation to force US carriers to strip out equipment from Chinese suppliers such as Huawei and ZTE.

The $8.5 billion fund is intended to boost connectivity in rural communities in the US, by offering carriers subsidised rates. However, the FCC has ruled that any carrier using Huawei's equipment in its network infrastructure will be banned from accessing the fund.

A report in the Wall Street Journal suggested that Huawei intends to file a challenge to this ruling in the Fifth Circuit Court of Appeals in New Orleans.

Huawei has fought a protracted battle with US authorities over the past 18 months, with Washington claiming that the company's telecommunications network equipment represents a security threat to the US. Despite offering no evidence to substantiate its claims, the US has been pressuring its European allies to also ban Huawei from its mobile network infrastructure.  

Huawei is expected to comment on the decision to take legal action later next week, according to the WSJ report.

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