Wireless operators in the United States have spent $5.6 billion for replacing mobile network equipment provided by Chinese tech companies such as Huawei and ZTE. Both ZTE and Huawei faced ban due to security concerns.
The US Federal Communications Commission (FCC) Chairperson Jessica Rosenworcel told Congress that mobile operators had applied for a reimbursement of $5.6 billion for ripping and replacing equipment deemed insecure by the US government.
In September, 2020, the FCC estimated that the effort would cost $1.8 billion.
US President Joe Biden in November signed the law to ban Chinese tech companies like Huawei and ZTE from getting approval for network equipment licenses in the country.
Last year, the FCC designated Huawei and ZTE as national security threats to communications networks, thus making it harder for the US firms to buy equipment from them.
“We’ve received over 181 applications from carriers who have developed plans to remove and replace equipment in their networks that pose a national security threat,” Jessica Rosenworcel tweeted on Saturday.
“While we have more work to do to review these applications, I look forward to working with Congress to ensure that there is enough funding available for this program to advance Congress’s security goals and ensure that America will continue to lead the way on #5G security,” Jessica Rosenworcel said.
The US sanctions have hit Huawei, the #1 telecom network maker in the world, hard and the company warned in December that it will see serious challenges in 2022 amid politicisation of technology, and further deglobalisation.
