Huawei is fighting to keep U.S. funds flowing into the country-mobile customers

WASHINGTON (Reuters) – China’s Huawei Technologies Co Ltd, the largest telecom equipment maker, said on Wednesday that Washington needs to scrap plans to prohibit wireless companies from the use of the united states government enough money to buy Huawei gear for their networks.

A FILE PHOTO of A Huawei logo is seen at the CES (Consumer Electronics Show) in Asia to 2019, in Shanghai, China, 11 June, 2019 at the latest. REUTERS/Aly Song

The Federal Communications Commission, and Chairman, Ajit Pai, said in March 2018, it was suggested that a ban on the use of funds from the Universal Service Fund, to buy equipment and services from companies that pose a threat to U.S. communications networks. The identified Huawei as a company of concern in a letter to Congress.

The rule is not in effect, even though The on-going support in a parliamentary hearing last month. An external auditor will also be asked to comment on whether or not the existing gears of the companies of the concern will need to be removed from the US telecommunications network.

Huawei alleged, in a filing to the FCC on Wednesday that the proposed rule would do nothing to protect national security, and could compromise national networks, as they are obliged to rip out Huawei equipment installed a year ago.

“Huawei can not and will not “sabotage” of the customer’s network. However, the recent actions of the government of the United States of america are only one step away from doing it,” Huawei said in its filing.

The Rural Wireless Association, has estimated that it would cost as much as $800 million to $ 1 billion for all members, to replace any purchased equipment from China’s Huawei and ZTE.

Huawei has been engaged in a battle with the U.S. government for more than a year ago. National security experts are concerned that the “backdoors” in routers, switches, and other Smartphone devices might allow China to spy on U.S. communications. Huawei has denied that it would help the people’s republic of China to spy.

National carriers also have at the bar on the use of the Universal Service Fund, on the Huawei devices, which often have lower prices than the competition.

In Missouri’s Mark Twain Communications, for example, noted in a recent filing that it would be difficult for the companies to decide which suppliers should be avoided, as they may be, in the future, pose a threat to national security.

The Universal Service Fund subsidizes the equipment that will be used to provide services in four programs, including a number of rural and hard-to-reach areas, libraries, and schools, and is a program that helps low-income consumers receive telephone service.

Huawei also said in the filing that it had sought in order to maintain compliance with FCC commissioners to discuss the regulations, but all were rejected.

Huawei is also argued in the filing that the ban on equipment sales in the United States is “likely to violate” U.S. obligations under the World Trade Organization.

“The Commission should not permit unsubstantiated ‘national security’ as an excuse for an alleged violation of long-standing international agreements, especially where such specific actions would be failing to address supply chain security concerns to be effective,” the company said in the filing.

The U.S. government has also upset China by the introduction of the Smartphone, at a time that would have banned U.S. companies from doing business with the Chinese company.

Reporting by Diane Bartz; Editing by Susan Thomas

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