NBC News reports:
The Trump administration’s ban on goods produced by a Chinese tech giant would seem to have little to do with rural America. But rural cell service providers across the U.S. are almost entirely dependent on the company, Huawei, which produces inexpensive wireless communications equipment.
These small telecom companies now face billions of dollars in costs or the end of their businesses entirely after the Trump administration effectively banned the Chinese company last week over spying accusations. It is a prospect that could leave vast swaths of rural America with no cell service.
The Huawei ban will force many wireless providers to turn to expensive European technology, as there are few American alternatives. Companies will have to rip out and replace everything they have already installed and hire highly-trained professionals to work on and install their network hardware.
Huawei’s founder and CEO says “even if the U.S. wants to buy our products in the future, I may not sell to them. There’s no need for a negotiation [with Trump].” https://t.co/DkxhO2e9QH pic.twitter.com/8wRqw7ZyoE
— Bloomberg (@business) May 27, 2019
“They spent all their resources stealing technology”: Huawei’s rise to stardom has long been dogged by accusations of unethical practices. https://t.co/pkS6P2DFHQ
— The Wall Street Journal (@WSJ) May 27, 2019
Huawei is essential for many wireless carriers that serve sprawling, sparsely populated regions. Now, with the Trump administration’s Huawei ban, carriers must rethink expansion plans, and perhaps replace existing gear. https://t.co/6F8XM4RZcq
— The New York Times (@nytimes) May 25, 2019
Small US telecom companies now face billions of dollars in costs or the end of their businesses entirely after the Trump administration effectively banned Huawei last week over spying accusations. https://t.co/75CCopEKZw
— NBC News (@NBCNews) May 27, 2019
NO SERVICE: Rural areas face prospect of losing cell phone service, may need massive taxpayer bailout to stay connected after ban on China’s Huawei. https://t.co/L04I6jIZNC
— Jonathan Allen (@jonallendc) May 27, 2019