Key Points
- U.S. House will vote on a $3 billion plan to remove Huawei and ZTE telecom equipment.
- FCC estimates the total “rip and replace” cost to be $4.98 billion. Only $1.9 billion has been allocated to date, leaving a $3.08 billion shortfall.
- The FCC warns of rural network shutdowns without additional funding.
- The bill includes additional measures to monitor Chinese regulatory evasion and biotech capabilities.
The U.S. House of Representatives will vote next week on an annual defense bill allocating over $3 billion to help U.S. telecom companies remove Chinese-made equipment from networks, addressing national security concerns. The bill targets Huawei and ZTE gear, which are considered security risks. It introduces additional measures, including reports on China’s attempts to bypass U.S. regulations and an intelligence review of China’s biotechnology capabilities.
The Federal Communications Commission (FCC) has estimated the total cost of replacing insecure equipment at $4.98 billion. However, only $1.9 billion has been allocated to date, leaving a $3.08 billion funding gap. FCC Chair Jessica Rosenworcel recently urged Congress to approve the required funding, warning of potential rural network shutdowns that could threaten 911 services and connectivity for isolated regions.
The “rip and replace” initiative was first mandated in 2019, requiring federally subsidized telecom carriers to remove Chinese equipment. Competitive Carriers Association CEO Tim Donovan welcomed the proposed funding, emphasizing the critical need to maintain connectivity for millions of Americans.
Proceeds from a one-time spectrum auction of the AWS-3 wireless band, which will also provide up to $500 million for regional tech hubs, are set to address the funding shortfall. Senate Commerce Committee Chair Maria Cantwell highlighted the importance of using these funds to meet rising wireless spectrum demands.
Washington has pressured allies to purge Huawei and similar technologies from networks, citing national security concerns. As the House prepares to vote, the outcome could significantly impact rural connectivity and the broader telecom landscape.
