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Huawei and ZTE Petition FCC Not to Classify Them As National Security Risk

Huawei and ZTE have petitioned the Federal Communications Commission (FCC) not to finalize its classification of them as threats to national security, according to Reuters. The FCC had previously vote...
Huawei and ZTE Petition FCC Not to Classify Them As National Security Risk
Written by Matt Milano
  • Huawei and ZTE have petitioned the Federal Communications Commission (FCC) not to finalize its classification of them as threats to national security, according to Reuters.

    The FCC had previously voted to label both companies a threat in November, but the decision has not been finalized, giving both companies a chance to reverse the initial ruling. At stake is potentially billions of dollars in federal funding that rural carriers can tap into, but only to purchase equipment from companies that are not deemed a threat.

    As a result, both companies are pulling out all the stops to try to prevent the initial ruling from becoming final. As Reuters reports, in its 200-page filing, Huawei said the action against it was “designed to implement a campaign by certain government officials, including members of Congress, to single out Huawei for burdensome and stigmatizing restrictions, put it out of business in the United States, and impugn its reputation here and around the world,” something it calls “unlawful and misguided.”

    Similarly, ZTE requested the FCC “take additional time to assess ZTE’s enhancements in the area of U.S. export control and economic sanctions compliance and security controls in ZTE products,” adding that it has “spent hundreds of millions of dollars to implement a compliance program relating to U.S. export control compliance regulations.”

    Given the FCC’s initial vote passed 5-0, and included a proposal that carriers be required to remove equipment made by both companies, it is unlikely either company will prevail in its appeal.

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