U.S. Bill Banning Hikvision and Dahua Approved by Both the House and Senate: Protect Your Business Before It’s Too Late
The National Defense Authorization Act (HR. 5515) was introduced in the House of Representatives on April 13, 2018.1 The NDAA sets defense appropriations for fiscal year 2019. The NDAAs success in the house provided a path to the Senate, where a resolution led to approval on June 19, 2016.2 Right now, you’re probably thinking, “So what? I’m in security not defense. Why do I care?” Well, unlike any NDAAs of the past, this bill is going to drastically change the security and telecommunications market, and if you are not prepared, the bill will be sure to cause your profits to fall and likely cause your business to fail.
This article gives a summary of important fact’s you should know, makes suggestions for what you should do to prevent your business from being negatively affected, and explains how you can actually make this an opportunity to improve your business return on investment, sales, and overall profit.
Facts of the Matter
The support and approval of the bill mentioned earlier in both branches of Congress means the only thing keeping it from becoming law is the U.S. President’s signature. However, this should not offer much hope to those who are not supporting the bill. The President is clearly onboard, as is evident from the statement below from the White House Press Secretary about the house passage of the NDAA conference report back in May 2018.
President Donald J. Trump promised the American people that he would restore our national security. Today, Congress is taking action on the President’s request that it carry out his commitment to our military. The Administration commends the House of Representatives for passing the Conference Report to accompany H.R. 5515, the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019, and encourages its swift passage in the Senate.3
Still, you’re probably asking, “Why will this affect my business?” Preceding its provisions, the bill cites FBI findings that the use of Chinese telecommunications equipment is not safe for government agencies because of the risks it poses to cyber-security.
The Federal Bureau of Investigation, in a February 2015 Counterintelligence Strategy Partnership Intelligence Note stated that, “[w]ith the expanded use of Huawei Technologies Inc. equipment and services in U.S. telecommunications service provider networks, the Chinese Government’s potential access to U.S. business communications is dramatically increasing. Chinese Government-supported telecommunications equipment on U.S. networks may be exploited through Chinese cyber activity, with China’s intelligence services operating as an advanced persistent threat to U.S. networks”.4
The bill then provides the following prohibition on use or procurement:
PROHIBITION ON USE OR PROCUREMENT.—(1) The head of an executive agency may not—
(A) procure or obtain or extend or renew a contract to procure or obtain any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system; or
(B) enter into a contract (or extend or renew a contract) with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.5
This prohibition may not sound too bad, but in notes at the end of this section of H.R. 5515 one finds the real “kicker” in a definition of the term “covered telecommunications equipment or services”:
(3) COVERED TELECOMMUNICATIONS EQUIPMENT OR SERVICES.—The term ‘‘covered telecommunications equipment or services’’ means any of the following:
(A) Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).
(B) For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities).
(C) Telecommunications or video surveillance services provided by such entities or using such equipment.6
Some may think this is unlikely to affect their business, as Hikvision and Dahua make up a relatively small portion of video surveillance used by the government. However, examination of clause (B) in the prohibition shows that in one-year businesses that use any of the “covered technology” will be excluded from doing business with a government agency. This means any business currently using Hikvision or Dahua will be forced to change their equipment, or they will risk losing any contract they have with the government. Even businesses that don’t buy from Hikvision or Dahua will likely be negatively affected, as companies such as ADT, Stanley, Tyco/JCI, Honeywell, and UTC all OEM or resell equipment from these Chinese manufacturers that are now prohibited.7
Protecting Your Business
Hikvision and Dahua serve as many CCTV installer’s primary choice of surveillance equipment. While this news will be quite unnerving for most installers, you (luckily) found this article so it won’t be for you! What’s the solution? 2MTechnology! 2MTechnology offers the highest quality HD-analog and IP camera systems on the market, as well as the most comprehensive wholesale partner program in the industry.
Our 4-in-1 analog DVR’s give installers the freedom of interoperability by supporting four different types of camera: basic analog, TVI, AHD, and even IP cameras. As for projects that only require a few additional cameras be installed, you can’t go wrong with our HD-Analog cameras. 2MTechnology’s HD-Analog cameras are also 4-in-1 and provide a dipswitch for an easy, no-tool required conversion between Analog, CVBS, TVI and AHD! That’s right! Complete interoperability with any Analog or HD-Analog systems on the market.
The 2MT-7100 series DVR includes a network output port to allow all the benefits of an IP camera system. Simply connect the DVR to your local network to enable web browser and smart phone accessibility by means of P2P, IP/Domain, or DHCP connection. Video analytics like people counting and facial recognition make the 2MT-7100 universal and the perfect choice for any application. Download 2MLivePro from your mobile phone’s app store and get connected for remote viewing within seconds of installation. Get 2MSuperlive (license-free!) on your personal computer for the ability to manage all your systems or installs from one easy-to-use hub! 2MTechnology has been perfecting analog technology for 15 years. By listening to installer and end-user feedback and directly implementing this feedback into the changes made, our equipment has evolved to meet the specific needs of CCTV installers.
2MTechnology is the manufacturer of choice for most IP camera installations. With the option of three unique IP cameras series (Essential, Professional, and Corporate), 2MTechnology partners have the benefit of choosing a system tailor made to serve the needs of any project.
The essential IP series is the perfect for small business or residential installs. With a smaller housing style, these cameras offer all the quality of our professional series, but with a discreteness often desired by small-business and homeowners. 2MTechnology offers any housing style you may prefer, including Bullet, Vandaldome, Eyeball, PTZ, and Fisheye. VCA features, audio in/out, VGA out, HDMI out, network out, alarm in/out, remote connection, and many more features make the Essential Series an impressive choice for any project.
The professional IP series is perfect for any install, big or small, offering all the benefits of the Essential series, plus so much more. With audio in/out and alarm in/out directly on the camera you’re able to include a microphone or speaker for two-way audio that feeds directly into the data line and is attached to the camera footage! This offers the ability for alarm-controlled recording, camera activated alarms, microphones on each channel, and more. PoE Extension can be activated in the Professional NVR menu options to extend the range of data and power transmission up to 700 feet, with no need for a PoE injector or switch! Use the 2MGuard app and turn your smart-phone into a mini-NVR to control your system from any location. With the license-free computer software, 2MStation, you can easily manage an unlimited number of systems. The Professional Series is the best choice, and most widely used by our advantage partners. Go Pro today and see firsthand the superior quality it offers.
For projects with hundreds of cameras or requiring multiple fail-safes, the Corporate Series is your go to solution. 2MTechnology’s Corporate Series is unrivalled and unparalleled in the CCTV market. With RAID for multiple recordings, you never have to worry about a bad hard drive or accidentally deleted footage. Supporting up to 256 cameras with one NVR, the Corporate Series makes the management and installation of extremely large jobs simple and drastically reduces installation time. It’s no wonder why so many Fortune 500’s trust 2MTechnology for their surveillance needs.
The 2MTechnology Advantage Partner Program is the leading wholesale-partner program in the nation. Three tiers (Silver, Gold, Diamond) based on annual sales offer discounts (30%, 40%, 50%, respectively) to installers at any level of purchases. Free shipping, a lowest-price guarantee, networking support, license-free software, and a 3-year warranty are just a few of the many perks of becoming an Advantage Partner.
While 2MTechnology provides a lowest price guarantee and discounts as high as 50% off MSRP, savings are just one of the ways we help your business succeed. At 2MTechnology, we realize that our success depends on our Advantage Partners success. That is why 2MTechnology offers many features focused on helping installers expand their business. We realize when you’re busy with installations it can be hard to find the time to hunt for new jobs or projects, so 2MTechnology offers agents that cold call and knock on doors to find projects for you! If we find you a project, it’s offered with no strings attached. You quote the equipment, labor, and installation the same as you would for a job you found yourself.
2MTechnology has teams of sales reps and engineers who are here to work for you. We also offer free project design and engineering assistance, and have technical support standing by to help with any of our partner’s needs.
And right now, 2M Technology is offering LIFETIME-DIAMOND level dealership to all installers who become a certified advantage partner in the next 180 days!!! That’s right! Regardless of your level of purchases, become a certified partner within the next 180 days and you will receive access to our most exclusive partner level with a 50% off MSRP discount for life!!!
Don’t miss out on this never-before-offered, once-in-a-lifetime opportunity! To become an authorized advantage partner, fill out our Advantage Partner Application at this link. Once you’ve applied, simply make your first purchase within 180 days to certify your partnership, and you’ll get 50% off all purchases for the life of your partnership with 2MTechnology.
Once you’ve signed up, visit our website, www.2mtechnology.net, and sign up to see all our products. Once you sign up on the website, your discount will be added so that you’ll see your DIAMOND level cost on all our products.
The impending ban doesn’t have to be scary. In fact, it shouldn’t be! You’ll soon find how much better off you are with 2MTechnology backing you up. I look forward to working with you!