Economy

US grants three-month relief for rural companies using Huawei

Huawei Technologies/Bloomberg

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The temporary licence covers continued operation of existing networks and equipment as well as support to existing handsets and other limited actions.

Tuesday 21, May 2019

(Bloomberg) --The Commerce Department has granted a 90-day relief for certain US broadband companies using Huawei Technologies equipment.

Wilbur Ross, US Commerce Secretary, said, “This licence will allow operations to continue for existing Huawei mobile phone users and rural broadband networks.”

Last week, Ross said that the Trump administration had a plan in place to deal with rural providers that use the Chinese company’s equipment in existing 4G networks.

The move comes after the administration placed the Chinese telecoms giant on an export blacklist that requires American companies to apply for a special licence to sell products to the world’s largest networking gear maker.

The impact of the threats to choke Huawei reverberated across the global supply chain, hitting some of the biggest component-makers

Small carriers, the main US users of Huawei gear, had worried the ban could keep them from even routine practises such as ordering replacement parts or exchanging information in order to update software.

The equipment is typically cheap and reliable, winning fans among rural providers. The largest US carriers do not use Huawei gear, which government officials say could be used for espionage, an allegation the company denies.

The temporary licence is effective for three months, until August.

 

TAGS : Huawei Technologies , Trump administration, Huawei blacklist

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