Huawei’s Ban In The US May Bankrupt Local Carriers


Huawei

Recent reports suggest that the Federal Communications Commission (FCC) is expected to pass a proposal that will prevent Huawei from doing business in the country. However, small wireless carriers including one in Kansas have expressed concern that it may go bankrupt if the FCC continues with its plan. Most of the wireless network equipment in Kansas’ wireless carrier, United TelCom, is provided by Huawei. The company said that the FCC’s ban on Huawei devices may force it to shut down.

“Prohibiting the use of Huawei equipment, or the use of USF and CETC legacy support to purchase or maintain that equipment, would have a severe and detrimental impact on residents living in remote, underserved locations in United TelCom’s wireless service area,” United TelCom wrote to the FCC.

Moreover, the FCC announced its goal of promoting network coverage in rural areas in the United States in the first half of the year. United TelCom estimates that the cost of replacing Huawei equipment is about $20 million – $25 million, and such large-scale funding could make it bankrupt.

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