The US House of Representatives is set to vote next week on an annual defense bill that includes more than $3 billion for US telecom companies to remove equipment made by Chinese telecoms companies Huawei and ZTE from US wireless networks to address security risks.
The 1,800-page text was released late Saturday and includes other provisions aimed at China, including requiring an intelligence assessment of Chinese efforts to circumvent U.S. national security regulations and the current status of China’s biotechnology capabilities.
The Federal Communications Commission estimates that removing the unsafe equipment will cost $4.98 billion, but Congress has previously approved only $1.9 billion for the “rep and replace” program. Washington has aggressively urged US allies to remove Huawei and other Chinese devices from their wireless networks.
FCC Chair Jessica Rosenworcel last week called on the U.S. Congress to provide additional funding immediately, saying a program to replace equipment in 126 carriers’ networks faces a $3.08 billion shortfall “both for our national security and the connectivity of rural consumers. These networks are at risk.”
She warned that the lack of funding could lead to the closure of some rural networks, which could “eliminate a provider in some areas” and threaten 911 service.
Competing Carriers Association CEO Tim Donovan praised Saturday’s announcement, saying, “Funding is needed to meet the mandate to remove and replace covered equipment and services while maintaining connectivity for tens of millions of Americans.”
In 2019, Congress asked the FCC to require US telecom carriers that receive federal subsidies to purge their networks of Chinese telecom equipment. In 2023, the White House requested $3.1 billion for the program.
Senate Commerce Committee Chairwoman Maria Cantwell said funding for the program and up to $500 million in support for regional tech hubs will be covered by funds generated by a one-time spectrum auction by the FCC for advanced wireless spectrum in the band known as AWS-3. Meet the growing spectrum demands of wireless consumers.