Huawei to fight U.S. telecom regulators in court

Daniel Fowler
November 30, 2019

The FCC labeled the company a "national security threat" on November 22 and banned it from a federal subsidy program that would have allowed U.S. businesses to receive subsidies for purchasing telecommunications equipment from Huawei, thus dealing a blow to U.S. Huawei sales. U.S. government organizations have a couple of times attempted to restrain Huawei's entrance to the American market, however as of late different respites and expansions have been conceded to enable the organization's current clients to keep up persistent assistance.

Earlier this year, Huawei was placed on the 'Entity List' which disallowed other US-based companies to have trade relations with the company. The ban on dealing with United States suppliers has limited Huawei's access to key technologies such as Google's Android's operating system and has been a blow to its ambition of becoming the world's leading smartphone manufacturer. Since then, the company is still facing problems with the Government after allegations were made over the risk of national security.

However a number of smaller providers use kit from Huawei and ZTE because it is relatively affordable.

Last week saw the FCC approve a measure that would deny subsidies to carriers who use equipment from Huawei, ZTE, or any other "bad actors". The Rural Wireless Association, a group of rural wireless businesses, then said the costs of making that change "are significant, across the board".

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Huawei plans to file an appeal against this decision.

Huawei plans to file a lawsuit in the US subsequent week, The Wall Avenue Journal reported, citing unidentified sources.

Huawei has fiercely objected the move, saying that no evidence has been presented. Additionally, US companies wish to partner with such Chinese firms and have argued that the ban also cuts off a valuable source of their revenue.

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