Money from the FCC’s Universal Service Fund can no longer be used on equipment or services from the Chinese firms.
The Federal Communications Commission on Tuesday formally designated Huawei and ZTE as national security threats, meaning telecoms can no longer use the FCC’s Universal Service Fund to purchase equipment or services from the Chinese firms.
Back in November, the FCC implemented a rule barring any money from the fund from going to suppliers deemed a national security threat. At the time, it recommended the designation be applied to Huawei and ZTE. The USF provides over $8.5 billion a year in subsidies to help telcos provide adequate broadband to rural Americans that currently lack access.
