US carriers can no longer purchase Huawei and ZTE equipment with federal subsidy

And while things are slowly going back to normal around the Huawei ban, the US FCC is making things harder on the other end. The latest development around the US-China trade war is that USA operators can no longer purchase Huawei and ZTE equipment using federal subsidy funds.

Huawei receives another three-month extension to its temporary General License

As of now, only select operators with approval can purchase Huawei and ZTE equipment and they can still do it but not with federal subsidy. In fact, FCC’s ruling obliges the US carriers to replace its current equipment bought with federal funds, which would cost around $2 billion, according to FCC’s commissioner.

Huawei has responded to the ruling by saying that FCC’s decision is based entirely on one-sided information and practically imposes restrictions in the absence of real evidence. If it objects the ruling, it would take up to 120 days for the restriction to take into effect.

Via (in Chinese)

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