In two little-noted decisions formally announced yesterday (30 June), the Federal Communications Commission (FCC) banned the funding by the FCC Universal Service Fund (USF) of the purchase or use of equipment or services provided by China’s Huawei and ZTE. The USF funds rural internet, Lifeline for low-income consumers, Indian Tribal initiatives, schools and libraries, and the Rural Health Care program–a substantial part of the national network which will also discourage private companies from use of their equipment as Verizon, Sprint, et al participate in these programs.
Both Huawei and ZTE have been found by the US government–and many others–to be extensively tied to the Chinese government and military, obligating these two companies to permit their systems to be used for espionage, plus numerous known cybersecurity risks and vulnerabilities in their equipment. Other national governments have felt likewise including the UK, which is reevaluating its former permission for their participation in the 5G rollout. FCC release, Huawei order, ZTE order, ZDNet (UK)