US bans 5G vendors Huawei and ZTE – considers them as national threat…

The United States Federal Communication Commission formally announced Huawei and ZTE to be posing threats to US national security, thus blocking the nations considered companies from tapping an $8.3 billion government fund to purchase the relevant equipment from these companies.

This decision comes after Huawei was considered as an auxiliary to the PLA(People Liberation Army ) China. Government sources claimed concerns about security and data theft implications would shape the crucial call to come to a decision on 5G providers for India.

Earlier this year, Huawei’s products were considered to be spying on its users and no certain terms on the security aspects the United States banned any software updates from android to this organization. Similarly, the company also reacted by firing certain American employees.

The United Kingdom also signaled a tougher line against the Chinese and reviewing the business options.

Australia is one step ahead of the US on this 5G vendor ban against the Chinese. Countries such as Germany and Canada are looking for other business alternatives but as of now, they have not banned Huawei.

Impact On India

With India expected to follow the decisions made by the US. Under the Modi government which is determined in making India digital as soon as possible, competitors of Huawei and ZTE like Samsung, Nokia, and Ericsson might face huge advantages of the situation.

These companies were earlier excluded from the conversation because of overpriced budgets. But these companies alleged claims state that the lower pricing of these Chinese companies is due to additional investment from The Chinese states(communist).

Restriction of telecommunication vendors will create bigger dent than blocking 59 apps.

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