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Trump extends ban on US telcos buying from Huawei and ZTE

Donald Trump.png

The US has extended its ban on US telcos from using Huawei and ZTE equipment and software for another year.

At the same time the Department of Commerce (DoC) is expected tomorrow to continue allowing US technology companies to supply Huawei.

President Donald Trump (pictured) signed an executive order under the International Emergency Economic Powers Act a year ago banning telcos in the US from using Huawei and ZTE kit, saying they posed a risk to US national security.

It’s that order that has now been extended for a year, mainly affecting low-margin rural carriers that have been using Huawei and ZTE. Steven Barry, CEO of the Competitive Carriers Association, told Congress in March that changing out Huawei or ZTE kit and replacing it was “essentially attempting to rebuild the airplane in mid-flight”.

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The other order, against Huawei but not ZTE, put it on an entity list, a list of embargoed companies maintained by the DoC. The current order is due to expire tomorrow, but the DoC is expected to extend it again, allowing Huawei to source software and hardware from US companies.

According to the Reuters news agency the CTIA – formerly the Cellular Telecommunications Industry Association – is calling for a long-term extension to the licence, because “now is not the time to hamper global operators’ ability to maintain the health of the networks”, according to the agency. It wants “ongoing, limited engagement with Huawei”.

 

 

 

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