ZTE Petition to Reconsider US National Security Threat Designation Rejected by FCC

FCC announced in June that it had formally designated Huawei and ZTE as threats.

By Reuters | Updated: 25 November 2020 09:56 IST

ZTE Petition to Reconsider US National Security Threat Designation Rejected by FCC

US President signed an order barring companies from using equipment by companies posing security risks

Highlights

FCC was extending time to respond to Huawei's petition until December 11
Ajit Pai said the commission will take up two national security matters
FCC voted to deny a Chinese telecommunications company in May 2019

The Federal Communications Commission (FCC) said on Tuesday it had rejected a petition from ZTE asking the agency to reconsider its decision designating the Chinese company as a US national security threat to communications networks.

The FCC announced in June it had formally designated Chinese's Huawei and ZTE as threats, a declaration that bars US firms from tapping an $8.3 billion (roughly Rs. 61,400 crores) government fund to purchase equipment from the companies.

ZTE did not immediately respond to a request for comment.

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Last week, the FCC said it was extending time frame to respond to Huawei's petition until December 11 "to fully and adequately consider the voluminous record."

In May 2019, President Donald Trump signed an executive order barring US companies from using telecommunications equipment made by companies posing national security risks and the administration added Huawei to its trade blacklist.

The FCC on December 10 will vote on rules to help carriers remove and replace equipment from companies posing security risks from networks.

FCC Chairman Ajit Pai said last week the commission will take up two unspecified national security matters at its December 10 meeting.

In April, the FCC disclosed it might shut down the US operations of three state-controlled Chinese telecommunications companies: China Telecom, China Unicom and Pacific Networks and its subsidiary ComNet (USA).

The nearly 20-year-old authorisations allow Chinese telecom companies to provide interconnection services for phone calls between the United States and other countries.

Last week, the FCC said it was reclaiming International Signaling Point Codes assigned to China Telecom (Americas), saying it had determined "the three codes are no longer in use." China Telecom did not immediately comment.

Last month, the FCC asked the Justice Department to weigh in on whether China Unicom's US operations pose security risks.

In May 2019, the FCC voted unanimously to deny another state-owned Chinese telecommunications company, China Mobile, the right to provide US services, citing concerns China could use the approval to conduct espionage against the US government.

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