The US government and some Chinese manufacturers are still at odds. Huawei and ZTE are excellent examples of this. Although the world is focused on the coronavirus situation, for now, the US government continues to implement measures against Huawei and ZTE.
United States definitively closes the door on Huawei and ZTE
According to reports that reached the Internet, U.S. President Trump has signed a bill that will ban telecommunications operators in the country from using government funds to purchase network equipment from Huawei and ZTE. Initially, according to the bill on secure and reliable communications networks, Huawei equipment is a threat to US security.
The White House released a briefing on Thursday stating that this legislation will protect telecommunications infrastructure. As I said, it prohibits the use of federal funds to buy equipment from certain companies that pose a threat to national security. In addition, the law requires the FCC to develop a scheme to pay local carriers. This fund is necessary for them to remove Huawei and ZTE equipment from their network.
However, this bill has given rise to dissatisfaction among US operators. According to a document sent by the Rural Wireless Association to the Federal Communications Commission in 2018, approximately 25% of member companies use Huawei or ZTE equipment. The reason is that Huawei or ZTE devices are cheaper and perform better.
Although the Communications Commission created a fund of millions of dollars to help rural telecommunications networks dismantle and replace equipment from Chinese manufacturers, the money is not enough. This is the main reason responsible for the dissatisfaction and protest of the operators.
A Huawei spokesman previously said that "replacing" Huawei equipment will take much longer than they think. This will likely put some remote customers at risk. In addition, this bill could also lead local wireless providers to financial problems. Providing secure and reliable network equipment is not entirely easy. That said, some of these local operators will have a hard time adapting to the post-Huawei / ZTE era.