FCC asks for more money to help telecom providers replace Huawei and ZTE gear

The Federal Communications Commission is asking for more funding to help internet service providers rip and replace equipment made by Huawei and ZTE. In a letter to Congress, FCC Chair Jessica Rosenworcel says the government has only allocated $1.9 billion to reimburse providers, which is $3.08 billion less than the $4.98 billion the FCC estimates it will need.

After designating the China-owned Huawei and ZTE as national security risks in 2020, former President Donald Trump signed a law forcing telecom providers to “rip and replace” the equipment from their networks. However, a lack of funding has slowed the project. In January, the FCC reported that only five program participants had fully removed, replaced, and disposed of the equipment in their networks that was manufactured by Huawei or ZTE.

In the letter, Rosenworcel says almost 40 percent of providers in the program can’t afford to replace their equipment without additional money. She adds that several companies may have to shut down if they don’t receive additional funding to replace equipment, potentially leaving some areas without service.

“Moreover, the inability of any Reimbursement Program recipient to fully remove, replace, and dispose of its covered equipment and services would raise national security concerns by leaving insecure equipment and services in our networks,” Rosenworcel writes. The FCC is required to first distribute funds to providers with less than 2 million customers, and it can only cover 39.5 percent of their costs due to the funding shortfall.

Companies that have started to receive funds have a deadline to finish removing and replacing covered equipment. The deadlines range from May 29th, 2024, to February 4th, 2025, based on when companies first received their funds.