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

Huawei Technologies [HWT.UL] has chose to challenge a U.S. Federal Communications Commission (FCC) decision barring U.S. rural carrier customers from tapping an $8.5 billion government fund to purchase equipment from the Chinese company, Wall Street Journal reported on Thursday.

Huawei, unsurprisingly, isn't happy with the decision, calling it "unlawful" in a statement. With many smaller operators already using Huawei's equipment, it's unlikely that they'll have the money to replace it.

Last week saw the FCC approve a measure that would deny subsidies to carriers who use equipment from Huawei, ZTE, or any other "bad actors".

To contest the FCC order, Huawei has 30 days from November 22, the day the regulator voted.

"We don't comment on speculation", Huawei spokesman in Shenzhen told Reuters.

President Trump in May blacklisted Huawei and issued an executive order barring US companies from buying telecommunications products from the tech giant, citing national security risks, though the administration has loosened its restraints on the company in recent weeks.

The Chinese giant Huawei plans to sue the US Federal Communication Commission (FCC) over recent restrictions on the company's equipment use in rural networks, part of a larger effort to push back against fears the company's devices offer backdoor access to Chinese intelligence, the Wall Street Journal reported on Friday. The ban on dealing with United States suppliers has limited Huawei's access to key technologies such as Google's Android's operating system and has been a blow to its ambition of becoming the world's leading smartphone manufacturer. Additionally, US companies wish to partner with such Chinese firms and have argued that the ban also cuts off a valuable source of their revenue. Half of these submissions have been approved with the other half rejected.