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US Government plan to spend about US$1.9B to replace Huawei & ZTE 5G infrastructures in the country

The end to Huawei's ban in the US doesn't seem to be anytime soon

John Wong by John Wong
4 weeks ago
in Industry News
Reading Time: 2min read
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US replace Huawei 5G infrastructures
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After completely ousting Huawei and ZTE in the US market over allegations of being a threat to the national security, the US had also enjoyed other western countries to oust Huawei from their 5G infrastructure development which has actually happened in the UK as well.

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The latest is that the American government is set to replace existing Huawei infrastructures as lawmakers are said to back the spending of some US$1.9 billion which will provide funding to remove all the telecom network equipment which the government has classified as a threat to national security.

This came in 2019 when the Chinese telecom giant received a lot of blacklists under the incumbent President Donald Trump who classified the company a threat to national security over its close ties with the Chinese government stating they could potentially build back-doors on their system that could in turn hurt the state of network communication in the country.

The funding for this new program has been added as a part of a $900 billion COVID-19 relief bill, reports Reuters citing people aware of the development.

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Earlier this month, Huawei had said that it was disappointed in the FCC’s decision “to force the removal of our products from telecommunications networks. This overreach puts U.S. citizens at risk in the largely underserved rural areas – during a pandemic – when reliable communication is essential.”

Huawei’s 5G technology seems to be out completely of the US market and there seems to be no clear timeframe as to when the company’s name on the blacklist of the Commerce Department being scrubbed especially as the US-China trade war continues to intensify.

The British government on the hand did the same when it announced it will withdraw all its Huawei network infrastructures by 2027 as well as halting the further deployment other 5G infrastructures from the Chinese tech giant.

The government is also working to create a new law, which once approved, will enable them to plan fines on telecom operators and can have them pay 10 percent of turnover or 100,000 Pounds per day if they fail to comply with the new regulations.

This isn’t a good news to Huawei which aimed to broaden its 5G reach throughout the world and become a big household name in the industry but then we are also left to wonder if the trade war between the US and China will ever end especially with a new president whose foreign policies could be different from those of the incumbent president.

Tags: 5G Network
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