The Federal Communications Commission (FCC) has decided to block Chinese company ZTE from contracts under the $8.3 billion Universal Service Fund, due to national security concerns.
FCC said Tuesday its Public Safety and Homeland Security Bureau denied ZTE's petition for reconsideration of being branded as a threat.
“At the next Open Meeting on December 10, the Commission will vote on rules to implement the Secure and Trusted Communications Networks Reimbursement program to help carriers remove and replace untrusted equipment from their networks, months before the statutory deadline," said Ajit Pai, FCC chairman
The commission declared Huawei and ZTE threats to national security in late June. ZTE requested reconsideration, and FCC rejected that petition.
This decision prohibits the Universal Service Fund from being used for purchases of ZTE products and services.
"Now it is more vital than ever that Congress appropriate funds so that our communications networks are protected from vendors that threaten our national security," Pai added.