FCC extends Huawei and ZTE equipment ban to legacy gear in US networks

Summary

The US Federal Communications Commission voted unanimously on June 29 to extend its ban on Huawei and ZTE equipment to legacy gear installed in US carrier networks before the original 2019 cutoff, closing what FCC commissioners called a "national security loophole". The order gives carriers a 24-month compliance window and confirms that the Reimbursement Program's existing $1.9 billion allocation covers only about a third of the estimated $5.6 billion total cost of replacing Huawei and ZTE infrastructure still operating across roughly 140 small and rural carriers. The order follows classified briefings in which intelligence agencies identified legacy Huawei gear in rural US networks as a specific vulnerability in post-Iran-war cybersecurity reviews. Ericsson and Nokia have pre-staged replacement hardware in anticipation of the ruling.

The split

The FCC frames the extension as closing a loophole that allowed Huawei and ZTE infrastructure installed before 2019 to remain in US networks indefinitely, noting that age does not reduce security risk. Huawei's US legal team called the order "politically motivated" and warned of a WTO challenge, arguing the ban lacks technical evidence of active compromise and serves primarily to shield Ericsson and Nokia from competition. Rural carrier groups acknowledged the security rationale but warned that the $3.7 billion funding gap will force some smaller carriers to pass costs to consumers or delay compliance beyond the 24-month window.

By the numbers

• $5.6 billion, estimated total cost of replacing all legacy Huawei and ZTE gear in US networks
• $1.9 billion, current FCC Reimbursement Program allocation (approximately $3.7 billion short)
• 140, approximate number of US carriers still operating Huawei or ZTE equipment
• 24 months, compliance deadline for full removal

Why it matters

The legacy ban closes the only remaining legal path for Huawei and ZTE equipment to remain in US telecommunications infrastructure. Its passage confirms that the US-China tech decoupling, which began with the 2019 entity list additions, is now reaching the final stages of network-layer separation. The funding gap is the real constraint: without Congressional supplemental appropriation, rural US carriers face compliance costs they cannot absorb, creating pressure for a budget ask that may be difficult in the current fiscal environment.

What to watch

• Congressional response to the $3.7 billion funding gap: a supplemental appropriation request is expected
• Whether rural carrier associations seek a compliance extension
• Huawei's WTO challenge: any panel ruling would take years but could create diplomatic friction
• Ericsson and Nokia contract wins: the replacement pipeline will be a leading indicator of compliance pace