Replacement Of Huawei And ZTE Equipment Costs $5.6 Billion

The expense of removing Chinese technology from American wireless networks will almost certainly exceed the government’s expectations. US carriers have asked around $5.6 billion in compensation to “tear and replace” their existing Huawei and ZTE equipment.

Replacement of Huawei and ZTE equipment costs a lot to the goverment

The Federal Communications Commission unanimously agreed in 2019 to prohibit US carriers from using the Universal Service Fund. To subsidise the cost of networking equipment purchased from firms designated a national security danger. Huawei and ZTE were the first two companies put to the list by the government. The Secure and Trusted Telecommunications Networks Act, enacted by former President Donald Trump in 2020, requires carriers to replace equipment from the two manufacturers.

In the same year, the FCC launched a programme to compensate smaller telecom operators for updating equipment designated a national security concern under the statute. The government projected that complying with the order would cost carriers more than $1.8 billion at the time. So it put aside $1.9 billion to pay refunds.

While we have more work to do to review these applications, I look forward to working with Congress to ensure that there is enough funding available for this program to advance Congress’s security goals and ensure that America will continue to lead the way on #5G security.

- Jessica Rosenworcel (@JRosenworcelFCC) February 4, 2022

Congress to lead the way for 5G

“While we still have work to do in reviewing these applications,” Rosenworcel said, “I look forward to working with Congress to ensure that adequate funding is available for this programme to fulfil Congress’s security priorities and guarantee that America continues to lead the way in 5G security.”

Before the submission window closed on January 28th, 2022, US carriers submitted 181 applications to the FCC for financing support. Currently, the organisation only has the funds to fund roughly a third of the requests it receives.

Originally published at https://www.activenoon.com on February 7, 2022.

--

--

Jay Jangid has 2 years of experience in the news media industry with journalistic touch and knowledge of how to create and recreate information into news.

Love podcasts or audiobooks? Learn on the go with our new app.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Jay Jangid

Jay Jangid

Jay Jangid has 2 years of experience in the news media industry with journalistic touch and knowledge of how to create and recreate information into news.