To further ensure the security of the nation
Ajit Pai, chairman of the committee, proposed a rule reinforcing restrictions on companies building Internet infrastructures in the United States. He says that it would apply to any telecommunication service provider or subcontractor defined as a security risk. The proposed rule does not mention Huawei by name, but there was no doubt that Huawei was a target of the proposal.
The impact of this rule will immediately be felt on Huawei’s sales in America. That rule would prohibit carriers from using the money from the universal service fund to purchase gear from companies considered to pose risks to national security. The $ 8.5-billion fund supports telephone, wireless and broadband service in poor and remote communities. His money comes from small monthly fees on consumers’ phone bills.
A first draft of the proposed regulation will be released on Tuesday, beginning a period of public consultation. An initial vote on the proposed settlement will take place at a meeting of the agency on April 17.
The agency also said it has not yet determined how to identify companies that pose a risk to telecommunication systems, especially as spy tools. Nevertheless, it could decide to follow the example of the intelligence agencies and the Congress. The congress in its authorization of military spending, has banned the Pentagon from buying network equipment from Huawei or ZTE.
Huawei’s access is already hampered in the US market because of US government policies and regulations dating back several years and motivated by security concerns. After finding, Doug Brake, Director of Telecommunications Policy at the Foundation for Information Technology and Innovation, a non-partisan research organization says, «This is one more step in the broader confrontation with the China. The big Chinese company achieved a global turnover of more than 90 billion dollars last year. In the United States, its sales were 200 to 300 million dollars, analysts said. Most sales in the United States are smartphones, although they sell network equipment to small rural telecom operators.
The Russian software company Kaspersky Lab is also on the list of banned sites, after its antivirus software was accused of containing a backdoor for surveillance by the Russian intelligence services. Kaspersky denied these accusations. The rule is in addition to recent Washington initiatives to limit the scope of foreign technology companies in the United States. This month, President Trump has