The U.S. lawmakers group is striving to replace Huawei equipment from its network, and for that reason, it rolled out regulations on Wednesday to provide funding of nearly $700 to U.S. telecommunications providers.
In accordance with regulations, it also banned the use of services and equipment served by Chinese telecoms Huawei and ZTE in next-generation 5G networks, the senators said in a statement.
The United States recently expressed concerns about Huawei and ZTE’s equipment that could be used to spy on U.S. residents and also accused the firms of being involved with the Chinese government. The U.S. communications infrastructure will be secured from threats set by companies such as Huawei and foreign governments, said the senator, who co-sponsored the bill.
The bill was also supported by the top Democrat on the Senate Intelligence Committee, Mark Warner, and the Democratic chairman, Roger Wicker.
While large U.S. tech companies have suspended business with Huawei, small-scale businesses intimidate Huawei and ZTE’s equipment and other products as their rates are significantly lower.
The Rural Wireless Association, which includes carriers with nearly 100,000 subscribers, has forecast that more than 25 percent of its users have ZTE and Huawei in their networks, and foreign company replacements would cost about $800 million to $1 billion.
Last week, the U.S. Commerce Department included Huawei to blacklist along with 60 associates and imposed restrictions over the company from purchasing components and parts from U.S. firms without government approval. However, it has eased the ban, saying the Chinese firm can make purchases to maintain existing providers and software updates.