Huawei Sent a Letter to the FCC Saying That U.S. Telecom Infrastructure Can Save $20 Billion If It Is Allowed to Compete Freely


Huawei has written a letter to the U.S. Federal Communications Commission (FCC), explaining why the United States should not miss out on the Chinese company’s leading technology. The letter also mentioned how Huawei's exclusion will drive up the cost extensively for U.S. consumers.

Huawei Also Included a Chart Revealing That the Chinese Tech Firm Is a Global Leader in LTE Connectivity

The tech giant was prompted by FCC's notice of rulemaking notice (NPRM) Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs to make these comments. The FCC made use of the NPRM to recommend that it makes sure Universal Service Fund (USF) funding is not wasted on service or equipment from vendors that may pose a national security threat to the communications supply chain or communications networks. The FCC made direct references to Huawei and the Chinese smartphone maker ZTE.

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Huawei stated that FCC’s decision will prevent the U.S. from becoming a leader in telecommunications technology. The company further said that it has played a major role in the development of 5G standards and it has been a leader in the eventual 5G deployment that will take place all across the world. Huawei said that its entry in the U.S. carrier market has been restricted artificially on the basis of unfounded suspicions that are based on misperceptions about the company’s relationship with the Chinese government.

The third-largest smartphone brand in the world clarified that it is an independent private company and it is not controlled by the government of China. The company’s products are sold in the U.S. through its Texas-based subsidiary, which is an American company that adheres to the region’s laws. Huawei also included a chart from GlobalData in its letter that shows the company is a global leader in LTE system, ahead of Ericsson, Nokia, ZTE, and Samsung, with the manufacturing pointing out that Cisco did not get a rating.

Huawei also said that there is no evidence that its equipment has ever harmed a network. It also mentioned that such decisions are backed by Huawei’s competitors that will benefit directly from the ruling. The Chinese giant further said that if it is allowed to enter the U.S. market and compete freely like competitors such as Samsung and Apple, the country’s mobile infrastructure can save nearly $20 billion U.S. dollars between 2017 and 2020 and those savings would be passed on to customers.

Huawei also believes that the FCC does not have the authority to make such decisions.

News Source: ZDNet