The FCC has finally put the seal of approval on its plan to cut funding going to equipment from companies it deems a “national security threat,” currently an exclusive club of two: Huawei and ZTE.
No money from the FCC’s $8.5 billion Universal Service Fund, used to subsidize purchases to support the rollout of communications infrastructure, will be spent on equipment from these companies.
“We take these actions based on evidence in the record as well as longstanding concerns from the executive and legislative branches,” said FCC Chairman Ajit Pai in a statement. “Both companies have close ties to China’s Communist government and military apparatus. Both companies are subject to Chinese laws broadly obligating them to cooperate with any request from the country’s intelligence services