In the wake of recent U.S. government actions to prevent future use of telecommunications equipment from certain international sources, security experts said risks remain for rural carriers continuing to use equipment from Huawei Technologies Co. Ltd. However, removing it may not be a top priority for the government.
On May 15, President Donald Trump signed an executive order that declared a national emergency to prevent the acquisition of information and communications equipment from countries posing a national security threat. On the same day, the U.S. Department of Commerce announced it was placing Huawei and its affiliates on its "entity list," which bans the sale or transfer of U.S. technology to anyone on the list without government approval.
The executive order only applies to transactions initiated, pending or completed after the president signed the order. Some rural telecom providers with tight budgets are already using Chinese equipment. The Rural Wireless Association, a trade group, told the U.S. Federal Communications Commission in December 2018 that at least 25% of its carrier members rely on equipment that could be perceived to pose a national security threat to communications networks or the communications supply chain.
Read the full article and more in S&P Global Market Intelligence.