FCC Chairman Proposes to Prohibit Purchases From Security Threat-Vulnerable Firms

FCC wants to stop spending on gear from companies that ‘pose a national security threat’ Devin Coldewey @ 7 hours

FCC wants to stop spending on gear from companies that ‘pose a national security threat’ Devin Coldewey @ 7 hours

The USF fund is a subsidy program that distributes money to low income individuals, as well as, directly to wireless, broadband and wired telephone service companies to help provide service in areas that are too expensive to cover.

FCC said Monday the proposed rule aims to protect USA communications networks and corresponding supply chains from national security threats.

Pai said in a statement that "virtually any" telecommunications equipment could have a "hidden back door" that could allow hostile governments "to inject viruses, launch denial-of-service attacks, steal data, and more".

An FCC official, said the rules would focus only on telecom equipment and not smartphones offered by banned companies.

"Although the FCC alone can't safeguard the integrity of our communications supply chain, we must and will play our part in a government- and industry-wide effort to protect the security of our networks", he said.

Pai's proposal, which goes up for vote next month, risks limiting U.S. business for both Huawei and another Chinese supplier, ZTE.

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On Friday, Pai's office made public a letter Pai sent to lawmakers dated March 20 that stated he shared concerns about espionage threats from Chinese smartphone maker Huawei Technologies.

The FCC, which regulates the U.S. telecommunications and broadcast industries, will hold an initial vote on the proposal on April 17.

Among the banned companies would likely be the Chinese firms Huawei and ZTE. It said that its members will respect the ruling, adding that they will "continue working with the FCC and other agencies to address supply chain vulnerability issues".

In 2012, Huawei and ZTE were the subject of a USA investigation into whether their equipment provided an opportunity for foreign espionage and threatened critical US infrastructure - something they have consistently denied. The tech companies, as well as Russian security software provider Kaspersky Lab, are already banned from use by the USA military, and this could provide a starting point for the FCC, says Bloomberg. The White House already blocked several USA purchases of Chinese firms on grounds of national security previous year.

Last week, Reuters reported that Best Buy, the largest consumer electronics retailer in the USA, will stop selling Huawei's devices over the next few weeks. According to a report from The Wall Street Journal last week, the FCC was considering rolling out a plan to dissuade United States wireless providers from acquiring equipment made and sold by companies like Huawei and ZTE.

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