Huawei Hasn't Given Up on US Market, Pitches the FCC

Despite being shown various "Not welcome here" signs by the country's ruling authorities, Huawei hasn't given up on the US market. The Chinese vendor has met with the FCC in an effort to persuade the Commission that network operators should not be banned from spending universal service fund (USF) money on its technology.

Earlier this year, the Federal Communications Commission (FCC) issued a Notice of Proposed Rulemaking (NPRM) titled Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs, which laid out a proposal on "a targeted rule to ensure that Universal Service Fund (USF) funding is not spent on equipment or services from suppliers that pose a national security threat to the integrity of communications networks or the communications supply chain."

The problem for Huawei Technologies Co. Ltd is that it, along with its Chinese peer ZTE and other specific vendors, is deemed a security threat by the US government. (See US Government Agencies Barred From Buying Huawei, ZTE Tech.)

So a team of Huawei executives and lawyers met with the FCC last week to put its case, asking the Commission to "consider the substantial costs of the NPRM, in particular its impact on carriers in rural and remote areas, many of whom are attracted to Huawei as a result of Huawei's commitment to affordable, quality products and attentive customer service." In essence, Huawei's pitch is that, without it, small rural operators will get less bang for their buck, as they'll be charged far more for technology products by alternative infrastructure vendors, and some will probably go out of business if they can't source their gear from Huawei.

You can read Huawei's note, outlining its pitch to the FCC, here.

The move comes as Huawei is scrambling to protect its interests in a number of global markets, where security concerns are being highlighted as 5G plans are developed and implemented. (See Australia Excludes Huawei, ZTE From 5G Rollouts, India Joins US & Australia to Give Huawei, ZTE 5G Cold Shoulder – Reports and Could Japan Also Bar Huawei, ZTE?)

That trend has resulted in some statements and media briefings that the vendor will regard as positive, with recent examples coming from Canada and New Zealand.

— Ray Le Maistre, Editor-in-Chief, Light Reading

wplummer 10/17/2018 | 1:04:27 PM
Re: SSDD v-tight gel Alex:  Exactly.  That was my point.  Huawei's been making variations of the same arguments for almost ten years (before it was 5G, it was 4G).  So, again, SSDD.  There's nothing novel about the strategy or messaging and little reason to believe that - while the arguments have always been commercially and technologically rational - they will have any new sway with the USG.  Bill
alexblogsite 10/17/2018 | 11:43:54 AM
Re: SSDD v-tight gel Huawei urged the Commission to consider the substantial costs of the [proposals], in particular its impact on carriers in rural and remote areas, many of whom are attracted to Huawei as a result of Huawei’s commitment to affordable, quality products and attentive customer service. Furthermore, Huawei’s lack of presence in the US would raise prices, harm competition, hinder innovation, and ultimately delay 5G deployment.
wplummer 10/3/2018 | 5:01:31 PM
Re: SSDD Sterling:

Following is how I introduced the book on LinkedIn:

"Agree, disagree, debate, but be civil - an art seemingly at sea in this day and age. There's not a speck of fake news included - from my informed perspective - although some may disagree. I'm just laying it all out there as it happened. If the U.S. Government gets its knickers knotted, take it with a grain of salt, they've been playing a disinformation long-game all along. If Huawei gets all hot-and-bothered, double the salt dosage - they should embrace the refreshing and human view into how the company faces adversity. They've got a lot to learn, they've come a long way, yet, they've equally backtracked. Whatever. Enjoy. Consider it a diary."

The book is not endorsed or vetted by or with anyone.  Nor do the observations made throughout the book reflect any access to classified U.S. Government materials nor confidential or proprietary Huawei corporate information.  Rather, the observations made throughout this book reflect my colloquial experiences, as perceived and interpreted by me.  It is up to the reader to define or divine truth.

This isn't anything like the book you read...

Sterling Perrin 10/3/2018 | 4:28:23 PM
Re: SSDD Huawei is playing a long game that has no equivalent in U.S. corporations.

For Bill - I have read one "inside" book on Huawei that was really mostly propaganda in the end. Is yours an authorized account? or unauthorized? I imagine from your position you would have been privvy to a great deal of high-level information.

Duh! 10/3/2018 | 1:12:41 PM
Re: SSDD Give them credit for persistence. They should adopt the honey badger as their mascot.
wplummer 10/3/2018 | 12:36:32 PM
Re: SSDD Ray: You might appreciate a gander at my recent book (linked in original post).  Hope all's well.  Bill
[email protected] 10/3/2018 | 12:28:00 PM
Re: SSDD Hard to argue against that. I guess the company has to try whatever it can, however futile it might seem in the current climate.
wplummer 10/3/2018 | 11:56:55 AM
SSDD While I wish the company luck, I'm challenged to imagine that this rehashed approach will make any difference given that while the Huawei arguments are being reported on as somehow new or novel, they are in fact the exact same arguments the company has made with the FCC and other U.S. Government Agencies and Departments for the last eight years.  Some new faces, but same messaging.  Didn't work in the past; it's uncertain what has changed.

For that historical perspective: https://www.amazon.com/Huidu-Inside-William-B-Plummer-ebook/dp/B07DHZDSYG/ref=sr_1_1?s=books&ie=UTF8&qid=1538581600&sr=1-1&keywords=huidu.  
DanJones 10/3/2018 | 11:13:48 AM
Don't believe it will make a bit of difference I'm not sure the FCC makes a bit of difference here, Huawei would need to get Trump's ear, witness the ZTE saga.
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