The Federal Communications Commission (FCC) has demanded more funding from the government to remove equipment manufactured by Chinese telecom giants Huawei and ZTE from American wireless networks.
FCC in a letter addressed to Maria Cantwell, Chair Committee on Commerce, Science, and Transportation United States Senate, said nearly 40 percent of U.S. telecom companies receiving federal support require extra funding to address security risks associated with these devices.
The cost of removing the equipment is estimated at $4.98 billion, significantly surpassing the $1.9 billion allocated by Congress for the “rip and replace” program. FCC Chair Jessica Rosenworcel emphasized the urgency of the situation, warning that failure to secure full funding could lead to severe consequences, including potential network shutdowns for some carriers participating in the reimbursement program.
Despite the White House’s request for an additional $3.1 billion to support the removal of Chinese telecom network equipment under the Secure and Trusted
Communications Networks Act, Congress has yet to take action, Reuters news report said. In 2019, Congress mandated the FCC to enforce the removal of such equipment from U.S. telecom networks, particularly those receiving federal subsidies.
Under the law, funding priority is given to applicants serving fewer than two million customers, with these companies currently receiving only 39.5 percent of replacement costs. Telecom providers are facing deadlines ranging from May 29 to February 4, 2025, to remove, replace, and dispose of all Huawei and ZTE communications equipment and services.
The potential ramifications of inadequate funding are profound, particularly in rural and remote areas where these carriers may be the sole mobile broadband service providers. Rosenworcel stressed that failure to fully address the issue could compromise national security by leaving insecure equipment within the nation’s networks.
The FCC’s call for additional funding comes amidst concerns over the security implications of Chinese telecom equipment, reflecting ongoing efforts to safeguard U.S. telecommunications infrastructure from potential threats.
