Huawei, which has recently been subject to sanctions from the USA, announced its revenues for 2021. The company announced that its revenue in 2021 decreased by 29% compared to the previous year, to 99.5 billion. It was also among the news that the sanctions imposed by the Donald Trump administration for reasons such as cyber security and espionage may have a major role in this decline.
Sanctions against Chinese electronics giants, which began under former US president Donald Trump, have continued to this day. China-based companies like Huawei are preventing US organizations from licensing new equipment. Now, the US has warned that US operators should not use Huawei and ZTE products used by them.
US operators banned from using Huawei and ZTE products
The estimated cost of replacing products from US operators Huawei and ZTE has increased significantly this time. On Friday, Federal Communications Commission (FCC) chair Jessica Rosenworcel told Congress that operators have filed for $5.6 billion in reimbursement for breaking or replacing equipment deemed unsafe by the U.S. government.
In September 2020, the FCC estimated that this exchange would cost approximately $1.8 billion for the process. The FCC allocated approximately $1.9 billion for this replacement need in December 2020. However, Rosenworcel said on Friday; “To ensure that the FCC has received more than 181 applications from carriers developing plans to remove and replace equipment that poses a national security threat in their networks, there is sufficient funding for this program to advance Congress’s security goals and ensure that the United States continues to lead the way in 5G security. He said he looks forward to working with them.”
While filings from these operators more than tripled the quarterly filing process, the FCC underlined that the final invoice doesn’t necessarily have to be $5.6 billion. First, Congress has not yet allocated these payments. Rosenworcel also tweeted last Friday that the applications were being reviewed. Therefore, there is a possibility that less than the stated budget, i.e. $5.6 billion, will be paid.
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