ZTE Tells FCC Its Equipment Is Safe for Use in US Networks

ZTE asked the FCC to exempt it from the list of covered companies deemed a threat to U.S. networks. The FCC approved national security supply chain rules 5-0 in November, barring equipment from Chinese vendors Huawei and ZTE in networks funded by the USF and establishing rules that could block other providers (see 1911220033). “ZTE has settled its case relating to export control and sanctions violations” and isn't listed by the Commerce or Treasury Departments for any export control or sanctions restrictions targeting it,” it said Monday in docket 18-89: ZTE’s “is committed to ensuring that our Company conducts business only in compliance with all applicable laws where we are operating, including U.S. export and sanctions laws and regulations. ZTE has spent hundreds of millions of dollars to implement a compliance program relating to U.S. export control compliance regulations and continues to work to enhance its compliance program.” The company said it's also making progress on cybersecurity: “Providing secure and trustworthy products and services for our customers is one of ZTE’s highest priorities." Comments are also coming in on a related Further NPRM. NTCH and Flat Wireless said they understand the security concerns: “Companies who innocently bought such equipment, or were forced to buy such equipment because of unfunded federal mandates, with no knowledge that it could be used as a portal for foreign interception should not be forced to bear the financial burden of destroying that equipment without compensation.” The State E-Rate Coordinators’ Alliance said the FCC should exempt USF recipients outside the E-rate program from the prohibition. “The greatest threat to national security involves the use of covered equipment and services in Eligible Telecommunications Company networks rather than in the more localized facilities of other USF recipients such as schools and libraries,” the alliance said.