Chinese telecommunications equipment manufacturer Huawei Technologies has issued an official response to the decision made by the US Federal Communications Commission (FCC) to ban local rural telecom companies from purchasing its equipment and services. Huawei urged the FCC to reconsider its "profoundly mistaken" ban and to reverse its decision.
The FCC voted on the ban decision on Friday, effectively imposing strict limitations on the use of the government's $8.5 billion-fund involving the purchase of telecommunications equipment and services. The fund, called the Universal Service Fund, is aimed at bolstering the country's telecommunications and broadband internet services capabilities, especially in disadvantaged communities and in underserved areas throughout the country.
The approved decision legally prohibits all telecom carriers from purchasing services and equipment from companies deemed by the government as a threat to national security.
In response to the decision, Huawei mentioned in a statement that the FCC's designation of the company as a security threat was based on "selective information" it had gathered and on "mistaken assumptions." The Chinese firm also stated that its decision will not only negatively affect the company but also thousands of Americans living in rural areas across the United States.
Huawei stated that many US telecom firms rely on its "high quality and market-leading" products and services to cater to US consumers' needs. If the government continued with the ban, US telecom companies will no longer have access to its solutions, effectively losing the ability to provide high-speed and reliable telecommunications and internet services.
The Chinese firm added that the ban would greatly reduce competition in the market for telecommunications equipment and services, particularly in the rapidly growing 5G network space. Huawei stated that this would likely result in higher prices for American consumers.
Huawei strongly stated that the order by the FCC is clearly "unlawful" and that it was unfair to single out the company without any concrete evidence of its claims that it is a national security threat. According to Huawei, the FCC's decision violates the core principles of due process and its accusations are based on "irrational speculations."
The statement also specifically mentioned FCC Chairman Ajit Pai, asking him to reconsider the agency's order and to review its designation of the company as a national security threat.
Huawei clarified that if the US were to work with them, the company could actually help in improving the country's network security. Being the world's largest telecom provider, the company stated that it is well versed in the best practices of the industry and that the use of its services and equipment will ultimately be of great benefit to the US and its consumers.
