The week between the Christmas and New Year's holiday is usually a slow one as most of the focus is on taking advantage of sales, spending time with friends and family, and playing with new “toys”. According to a new report from Reuters, some of those “toys” may be banned in the U.S. as the Trump administration considers – and appears to be likely to implement – a ban on equipment from Huawei and ZTE. The two companies do not have a huge consumer presence in U.S. markets, but a ban could have a big impact on wireless network operators.
Sources indicate the administration has been working on an executive order for most of the year and is close to final language. This could mean the order may be released in January and would “direct the Commerce Department to block U.S. companies from buying equipment from foreign telecommunication makers that pose significant national security risks.” Effectively, most think this would result in a ban on Huawei and ZTE equipment in particular even though the companies may not be specifically named. The proposed executive order is believed to use the International Emergency Economic Powers Act for the authority needed to regulate commerce “in response to a national emergency.”
The latest move comes on top of an earlier defense policy bill passed in August that bars U.S. government agencies from using Huawei and ZTE equipment. The two companies have been accused in the past of violating international sanctions resulting in conflict with the U.S. There is also a general belief by many in government that the two companies may be embedding technology in their equipment that could be used to spy on the U.S. or even shut down wireless networks remotely.
One group of carriers that could be hit especially hard would be rural carriers that deploy cheaper equipment. All carriers are currently in the process of implementing 5G capabilities and access to less expensive equipment for these upgrades is important for rural carriers who have far fewer customers to spread costs to. The FCC estimates 25 percent of rural carriers in the U.S. currently have ZTE or Huawei equipment being used in their networks. The Rural Wireless Association says replacing this equipment – which some fear may be a requirement of the new executive order on top of barring future purchases – could cost $800 million to $1 billion. In some recent filings, smaller carriers indicate ZTE and Huawei equipment generally runs about twenty-five percent of the cost of equipment from manufacturers like Ericsson.
source: Reuters
Do it !!