Pai Plans 'Proactive Steps' on Communications Supply Chain Security, Over Lawmakers' Huawei Concerns

FCC Chairman Ajit Pai intends to “take proactive steps to help ensure the integrity of the communications supply chain in the United States in the near future,” he said in March 20 letters to 18 lawmakers released Friday. The proposal would reduce FCC subsidies to carriers that use Huawei equipment or products, including barring them from receiving USF funding, a communications sector lobbyist told us. The FCC didn’t comment on the contours of the plan. Senate Majority Whip John Cornyn, R-Texas, Sen. Angus King, I-Maine, and other lawmakers wrote Pai in December to raise concerns about reports Huawei was set to begin selling its consumer products in the U.S. as soon as this year “with little or no modifications" to address privacy and cybersecurity concerns. The lawmakers cited 2012 and 2013 House Intelligence Committee reports detailing Huawei’s ties to the Chinese government. The 2012 report recommended the U.S. “view with suspicion” any attempts by Hauwei to continue making inroads into the U.S. market (see 1210100053 or 1210100091). AT&T and Verizon “abandoned” plans to sell Huawei’s Mate 10 pro smartphone, but “I share your concerns about the security threat that Huawei and other Chinese technology companies pose to our communications networks,” Pai said in letters to the lawmakers. Best Buy has said it will also stop selling Huawei products. Pai said he's taking action on supply chain security after a recent “briefing on these issues from the Intelligence Community.” The FCC itself already doesn’t “purchase or use” Huawei or ZTE products or equipment “and I do not expect that would change if a major U.S. communications company partnered with Huawei,” Pai said. Huawei and ZTE didn’t comment.