Nokia, Ericsson could have market in US to compete with Huawei: Sen. Portman
Sen. Rob Portman, R-Ohio., discusses the Nokia, Ericsson acquisition in competition with Huawei and China’s IP theft threat.
The Federal Communications Commission on Tuesday designated Chinese telecommunication giants Huawei and ZTE as national security threats.
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The U.S. has gradually moved to block Huawei from using American technology in its products and to remove Huawei equipment from U.S. telecom networks, mainly in rural areas, due to security risks.
As a result of the new designation, "telecom companies cannot use money from our $8.3 [billion] Universal Service Fund on equipment or services produced or provided by these suppliers," FCC Chairman Ajit Pai wrote in a Tuesday tweet.
Huawei and ZTE urged the U.S. not to impose the new label in separate filings with the FCC in February after the Commission voted 5-0 in favor of the label.
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The Universal Service Fund is a system of telecom-related subsidies that ensures nationwide access to phone and internet services.
"In making this decision, @FCC took into account input from Congress, Executive Branch, intelligence community, allies, and communications service providers. [The] overwhelming weight of evidence supported designation of Huawei and ZTE as national security risks to U.S. networks," Pai continued.
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