US FCC: Restrict Huawei and ZTE procurement: Companies subject to USF subsidy
New York
November 25, 2019
Federal Communications Commission (FCC):
On November 22, we adopted the “Regulation that partially stops procurement from companies that pose a threat to security for the US communications network”.
As a result, US companies that receive public subsidies in the telecommunications business are banned from new contracts with Huawei and Zhongxing Tatsumi (ZTE).
In addition, the FCC has announced a plan to require switching to another company if the products and services of the companies listed above have already been introduced.
Current regulations: Universal Service Fund
This time, companies subject to USF subsidies are subject to regulation.
About USF:
Established to provide low-cost communication services to medical institutions, schools and libraries in areas where communication charges are high.
Each state grants subsidies to designated carriers, which amount to $ 8.5 billion per year.
FCC regulations
USF subsidies are prohibited for Huawei and ZTE product and service procurement companies.
The FCC will continue to develop procedures for adding designated companies.
Products and services that have already been introduced:
Use is still allowed. However, the USF subsidy is prohibited to maintain it.
The enforcement of the rules is the date of publication in the official gazette.
-JETRO
https://www.jetro.go.jp/biznews/2019/11/de7461ff0657fbdb.html
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