FCC Bars Subsidies for Equipment Posing National Security Threats

As part of its continuing efforts to safeguard the security and integrity of the nation’s communications networks, the Federal Communications Commission has barred use of its $8.5 billion a year Universal Service Fund (USF) to purchase equipment and services from companies that pose a national security threat. The Order adopted initially designates Huawei Technologies Company and ZTE Corp. as companies covered by this rule and establishes a process for designating additional covered companies in the future. The Order also establishes a certification and audit regime to enforce the new rule. In an accompanying Further Notice of Proposed Rulemaking adopted Nov 22, the FCC is proposing to require carriers receiving USF funds, known as eligible telecommunications carriers, to remove and replace existing equipment and services from covered companies.