US House of Representatives plans to allocate $3 billion to remove Chinese telecom equipment
Washington, US House of Representatives plans to allocate $3 billion to remove equipment from Chinese telecom companies Huawei and ZTE from US wireless networks as part of the annual defense bill (National Defense Authorization Act).
This bill aims to address US national security concerns and secure connectivity for consumers in rural areas. FCC Chairman Jessica Rosenworcel warned that underfunding this program could endanger national security and cause shutdowns on rural networks.
Washington, US House of Representatives plans to allocate $3 billion to remove equipment from Chinese telecom companies Huawei and ZTE from US wireless networks through the annual defense bill (National Defense Authorization Act). The 1,800-page bill also includes requests for reports on China’s efforts to evade US national security regulations and the current status of its biotechnology capabilities.
FCC’S WARNINGS AND LACK OF FUNDING
The Federal Communications Commission (FCC) has stated that $4.98 billion is needed to remove this equipment, but Congress has previously approved only $1.9 billion in funding. FCC Chairman Jessica Rosenworcel warned that the program had a $3.08 billion deficit due to insufficient funding and that this could lead to shutdowns in rural networks, saying, “This situation jeopardizes our national security and the connection of consumers in rural areas.” Rosenworcel also noted that the closure of single-provider networks in some areas could threaten 911 services.
Tim Donovan, CEO of the Competitive Carriers Association, emphasized that this funding is urgently needed and said, “Funding for the removal and replacement of equipment and services is vital. We must leverage this funding to maintain connectivity.”
In 2019, Congress ordered the FCC to order U.S. telecom companies that receive federal subsidies to purge Chinese telecom equipment from their networks. In 2023, the White House requested $3.1 billion for this program.
FUNDS WILL BE PROVIDED THROUGH THE SPECTRUM AUCTION
Senate Commerce Committee Chair Maria Cantwell announced that a total of $500 million for this program and regional technology centers will come from the FCC’s AWS-3 band spectrum auction. This auction will be held to meet the increasing spectrum demands of wireless consumers.