FX.co ★ US House of Representatives passes bill banning government spending on Huawei

The spying scandal over China's Huawei Technologies Co. is the main reason for a new US bill. The US House of Representatives passed legislation prohibiting the use of governmental funds to buy communications equipment from companies that are “posing national security risks”. At the moment, the legislation is waiting for a Senate vote. It is likely to be supported by most of the members. In addition to the ban, the law also provides financial assistance to domestic producers that will stop using insecure equipment. The bill affects a very important segment of the US telecommunications market, including small and rural providers. A significant part of the country's population uses their services. The government allocated $1 billion to replace prohibited telecommunications equipment with more “secure” technologies. Last month, the US Federal Communications Commission prohibited various organizations from using federal funds for buying telecom equipment and services offered by Huawei and ZTE. Regional and rural providers of broadband are often found among these organizations.