Huawei to challenge FCC decision on government subsidy program

US telecommunications regulator is to propose requiring carriers to remove and replace equipment from Huawei. — AFP  File

A photo shows people walking past a sign board of Huawei at CES Asia 2016 in Shanghai, China May 12, 2016. Specifically, it is said a suit will be filed at the Fifth Circuit Court of Appeals in New Orleans, Louisiana.

Huawei is set to challenge a decision made by the US Federal Communications Commission (FCC) that prevents mobile operators in the country from using government funds to buy its telecommunications networking equipment. The FCC affirmed a request a week ago that would boycott carriers accepting Universal Service Fund subsidies from utilizing that cash to purchase hardware from organizations considered "a national security threat" - alluding to Chinese organizations Huawei and ZTE.

Huawei said the label singles out the company as a national security threat but provides "no evidence" to support the decision, adding that the "FCC simply assumes, based on a mistaken view of Chinese law, that Huawei might come under Chinese government control".

A Huawei spokeswoman declined to remark however the firm has invited AFP and different media to its headquarters within the southern metropolis of Shenzhen subsequent Thursday for an unspecified announcement.

In a statement last week, Huawei said that the FCC decision "was based on selective information, insinuations and wrong assumptions" and that blocking access to the fund will harm U.S. consumers.

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However, the FCC has voted on a measure that mandates USA operators to remove and replace Huawei kit from their networks.

Trump has since offered temporary benefits to Huawei to give service providers in remote rural areas time to comply with the ban, United States officials say.

ZTE came close to collapse a year ago after American companies were prevented from selling it vital components over its continued dealings with Iran and North Korea.

Trump later allowed ZTE to renew imports below powerful circumstances.

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