Huawei says ‘unfounded’ lockout by US costing its own consumers US$20 billion
While Huawei and ZTE have seen their network equipment sales flourish across the world, US security concerns have kept the two companies from selling infrastructure products to American telecoms operators
Huawei Technologies said “unfounded” allegations by the US government that the company is a security risk has kept it out of the country’s telecommunications equipment market, costing American consumers US$20 billion in lost savings from the country’s development of mobile networks.
Both Huawei and ZTE Corp, however, are expected to languish on a US blacklist because of US security concerns, according to analysts.
That outcome would primarily stem from a Federal Communications Commission (FCC) proposal to prohibit the purchase of equipment or services for a government-subsidised programme, the US$8.5-billion-a-year Universal Service Fund (USF), from any company that poses as a national security threat as a way to safeguard US networks.
Huawei, the world’s largest telecommunications equipment supplier and No 3 smartphone brand, said in a filing to the FCC on Monday that blacklisting the company because of “unfounded allegations and suspicions” about its alleged ties with the Chinese government would mean higher infrastructure costs and less innovation in the US market.
That argument, however, is not expected to deter the administration of US President Donald Trump from pushing its agenda.