US House to Vote on $3 Billion for Removal of Chinese Telecoms Equipment

US House to Vote on $3 Billion for Removal of Chinese Telecoms Equipment

The US House of Representatives is poised to vote on an annual defense bill next week that includes over $3 billion for US telecom companies to remove equipment from Chinese telecommunications firms Huawei and ZTE from American wireless networks due to security concerns. The comprehensive bill also incorporates measures targeting China, such as a report on Chinese efforts to circumvent US national security regulations and an assessment of the current status of China’s biotechnology capabilities.

Funding Shortfall for “Rip and Replace” Program

The Federal Communications Commission (FCC) estimates that removing the insecure equipment will cost approximately $4.98 billion, but Congress had previously approved only $1.9 billion for the “rip and replace” program. The FCC Chair, Jessica Rosenworcel, has repeatedly urged Congress to provide additional funding, warning of a $3.08 billion shortfall that jeopardizes national security and rural connectivity. She cautioned that the lack of funding could lead to rural network shutdowns, disrupting 911 services and eliminating the sole provider in certain regions.

Industry Support for Additional Funding

The announcement has been met with support from industry representatives such as Tim Donovan, CEO of the Competitive Carriers Association, who emphasized the critical need for funding to fulfill the mandate and maintain connectivity for millions of Americans.

Congressional Mandate and White House Request

In 2019, Congress directed the FCC to require US telecom carriers receiving federal subsidies to remove Chinese telecoms equipment from their networks. The White House requested $3.1 billion for the program in 2023.

Funding Source for the Program

According to Senate Commerce Committee Chair Maria Cantwell, funding for the program and up to $500 million for regional tech hubs will be generated from a one-time spectrum auction by the FCC for advanced wireless spectrum in the AWS-3 band. This auction is intended to meet the increasing spectrum demands of wireless consumers.