WASHINGTON (Reuters) – A party group of lawmakers introduced legislation on Wednesday to provide around $ 700 million in grants to assist US telecommunications providers with the cost of removing Huawei equipment from their networks.
PHOTO FILE: Senator Tom Cotton (R-AR) arrives to hear from the Seanad Information Committee to assess the Information Community Assessment of the "Russian Activities and Objectives in the recent United States Elections" on Capitol Hill i. Washington, USA, May 16, 2018. REUTERS / Joshua Roberts
In addition, the bill impedes the use of equipment or services from Chinese telecommunications firms, Huawei and ZTE in next generation 5G networks, in accordance with a statement from Senators.
The United States has accused ZTE Corp. and Huawei Technologies Co Ltd for working for Chinese government and has expressed concern that their equipment could be used to bring dependents to Americans, there are allegations without Chinese government and these unfounded companies.
“So much so, our communications infrastructure needs to be protected from threats created by foreign governments and companies like Huawei,” said Tom Cotton, a Republican senator who co-sponsors the bill, in a statement.
The bill is also supported by Mark Warner, the best Democrats on the Senate Information Committee, and Roger Wicker, the Democratic Chair of the Seanad Commercial Committee.
While large wireless companies have connections with companies with Huawei, small rural carriers have carried cargo on Huawei and ZTE switches and equipment as they are often less expensive.
The Rural Wireless Association, which represents carriers with less than 100,000 subscribers, estimates that Huawei and ZTE are networks of 25 per cent of its members, and said it would cost $ 800 million to replace it.
The move goes beyond the steps taken to date by the administration of US President Donald Trump, even because he advanced his position on Huawei.
Last August, Trump signed a bill that hinders the US government's own use of Huawei and ZTE equipment.
Then, last week, U. Huawei's Department of Commerce and 70 affiliates enlisted, which prohibited the company from purchasing parts or components from US companies without Government approval.
Five days later, the US government temporarily eased trade restrictions, allowing the Chinese firm to buy American made goods to keep existing networks and provide software updates for the existing headset ears own.
Reporting by Makini Brice; Edited by Lisa Shumaker
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