US Plans $700 Million To Replace Huawei And ZTE Equipment

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Updated on
27 May 2019

In a recent development on the ban of Chinese Smartphone Company Huawei by Google, a group of bipartisan US Lawmakers introduced legislation that includes grants worth $700 million for the U.S. telecom companies to remove Huawei equipment from their networks. Moreover, it also involves blocking the involvement of the Chinese manufacturer’s (Huawei and ZTE) equipment and tool from the next-gen 5G network.

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Tom Cotton, a Republican senator, stated that;

With so much at stake, our communications infrastructure must be protected from threats posed by foreign governments and companies like Huawei.

The U.S. has accused the Chinese manufacturers that they will be using their Chinese equipment for the unethical advantage of spying over the Americans by the Chinese Government. But, the Chinese government and both the companies state that these allegations are baseless.

Top Democrat on the Senate Intelligence Committee, Mark Warner, and Roger Wicker, Democratic chairman of the Senate Commerce Committee, are also backing the bill presented by the U.S. lawmakers. It is a fact that large U.S. companies have parted ties with Huawei and ZTE but, small carriers lean on them as they provide cheap equipment and switches.

“It would cost $800 million to $1 billion to replace the Huawei and ZTE in their networks”, The Rural Wireless Association, which represents carriers with fewer than 100,000 subscribers. This step is given more fuel as U.S. President, Donald Trump has hardened his stance on this regulation. Moreover, he barred the U.S. government from the usage of Huawei and ZTE equipment by signing a bill last August.

We will have to wait and see, what impact this could make to the two Chinese companies as there is no official statement released by them in this matter.

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