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While some have tied today's China court-ordered ban of some iPhone sales with the arrest, and ongoing hearings, of Huawei's CFO, there is an even more direct consequence for American business from the Trump administration's potential crackdown on various Chinese tech companies.
Bloomberg reports that some small U.S. phone companies fear they’ll be forced to rip out network equipment made by Huawei as tensions rise following the arrest of the Chinese gear maker’s chief financial officer.
FCC - Subsidy - Funding - Carriers - Huawei
The FCC is considering barring some subsidy funding for carriers that use Huawei gear (which is generally regarded as less expensive than competitors’ equipment) out of security concerns.
In April 2018, the Commission released an NPRM in which it proposed and sought comment on a rule to prohibit, going forward, the use of universal service funds to purchase equipment or services “from any communications equipment or service providers identified as posing a national security risk to communications networks or the communications supply chain.”
Rule - Text - Huawei - ZTE - NPRM
While the proposed rule text did not specifically refer to Huawei or ZTE, the NPRM discussed the two companies in detail and left little doubt that, if adopted, the rule would prohibit Universal Service Fund (“USF”) support recipients...
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