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FCC Calls Huawei, ZTE Security Threats as It Bars Subsidies

  • Federal Communications Commission acts on Chinese gearmakers
  • Move prohibits U.S. subsidies from being used to buy equipment
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WATCH: The FCC move is a step toward driving the Chinese manufacturers from the U.S. market.(Source: Bloomberg)
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The U.S. Federal Communications Commission designated Huawei Technologies Co. and ZTE Corp. as national security threats, a step toward driving the Chinese manufacturers from the U.S. market where small rural carriers rely on their cheap network equipment.

The action means money from federal subsidies used by many small rural carriers may no longer be used to buy or maintain equipment produced by the companies, the FCC said in a news release.