Huawei and ZTE have been blocked from receiving network licenses after US President Joe Biden signed into law the Secure Equipment Act.
The new rules mean the FCC (Federal Communications Commission) can no longer consider any applications for network equipment that may pose a national security threat, Reuters reported.
The new rule was passed by a 420-4 House vote and approved unanimously by the US Senate last month. With the measure, the FCC can no longer issue or review licenses to companies on the FCC's "Covered Equipment or Services List."
FCC Commissioner Brendan Carr said, "We have already determined that this gear poses an unacceptable risk to our national security, so closing what I have called the ‘Huawei loophole’ is an appropriate action for us to take."
“We have already determined that this gear poses an unacceptable risk to our national security, so closing what I have called the ‘Huawei loophole’ is an appropriate action for us to take.”
Earlier this year, the FCC launched a $1.9 billion "rip and replace" program to help US telecoms replace Huawei and ZTE equipment they may be using. House member Steve Scalise last week that "Huawei and ZTE "are probably the two most prominent companies that still have a lot of equipment out there where Americans’ data runs across those networks."
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