Huawei Reportedly Prepared to Sue FCC Over Ban

The FCC in November voted to prohibit carriers that receive Universal Service Fund money from purchasing network equipment from Huawei. Now, the Chinese telecom is reportedly ready to challenge the action in court, according to the Wall Street Journal.

WSJ sources said Huawei is preparing a lawsuit to challenge the decision and is prepared to file documents this week in federal appeals court. The company has also increased its lobbying efforts in Washington, D.C., according to the account.

The Commission identified Huawei and ZTE as risks to this country’s national security. U.S. security agencies say the companies are obligated to use their gear to spy for the Chinese government, a charge they’ve repeatedly denied. The agency also asked for public input on establishing a fund to reimburse small carriers that now need to rip out and replace that equipment, Inside Towers reported.

Huawei said at the time, the agency’s action was based on “selective information, innuendo, and mistaken assumptions.” The company cautioned what it characterized as “unwarranted actions” would have “profound negative effects” on connectivity in the U.S., especially for rural areas.