Commerce Department Grants 90-Day Reprieve From Huawei Ban, Cites Impact on Rural Broadband Networks

BROADBAND BREAKFAST INSIGHT: On Monday, a mere five days after placing Chinese telecommunications manufacturer Huawei on the “Entity List” of effectively banned companies, the Trump administration signaled a (temporary) reprieve: Effective Monday, U.S. manufacturers will have 90 days in which to find alternatives to Huawei: “The Temporary General License grants operators time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services,” said Secretary of Commerce Wilbur Ross in a statement. “In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks.”

At the same time, in the day’s other big news, we heard more patriotic chest-thumping from Federal Communications Commission Chairman Ajit Pai over his reasons for the agency to support the T-Mobile/Sprint merger combination. Huawei and China were never mentioned, although Pai did say: “Two of the FCC’s top priorities are closing the digital divide in rural America and advancing United States leadership in 5G, the next generation of wireless connectivity. The commitments made today by T-Mobile and Sprint would substantially advance each of these critical objectives.”

U.S. eases restrictions on Huawei; founder says U.S. underestimates Chinese firm, from Reuters:

The U.S. government has temporarily eased trade restrictions imposed last week on China’s Huawei, a move aimed at minimizing disruption for its customers but dismissed by its founder who said the tech firm had prepared for U.S. action.

The U.S. Commerce Department will allow Huawei Technologies Co Ltd to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets.

The world’s largest telecommunications equipment maker is still prohibited from buying American parts and components to manufacture new products without license approvals that likely will be denied.

The U.S. government said it imposed the restrictions because of Huawei’s involvement in activities contrary to national security or foreign policy interests.

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