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The FCC is seeking increased funding from Congress to aid telecom providers in removing and replacing equipment manufactured by Huawei and ZTE, two Chinese technology giants flagged as national security threats.
Urgent Funding Needed for Huawei, ZTE Replacement
The Federal Communications Commission (FCC) is urging increased funding to help internet service providers remove and replace Huawei and ZTE equipment.
In a letter addressed to Congress, FCC Chair Jessica Rosenworcel highlighted the shortfall in government allocations.
Only $1.9 billion is designated for provider reimbursements, which falls significantly short of the estimated $4.98 billion required by the FCC to cover the costs.
Following the 2020 classification of Huawei and ZTE as national security threats, former President Donald Trump enacted legislation mandating telecom providers remove and replace the flagged equipment from their networks.
However, due to insufficient funding, progress has been hindered.
As of January, the FCC reported that only five program participants had successfully completed removing, replacing, and disposing of Huawei or ZTE-manufactured equipment from their networks.
Rosenworcel's letter highlights a pressing concern: nearly 40% of program participants lack the financial means to replace their equipment without further assistance.
She underscores the potential ramifications, suggesting that certain companies may face closure without additional funding, potentially resulting in service disruptions in affected areas.
Importance of Equipment Replacement, Funding Allocation
Rosenworcel also emphasizes the importance of fully removing, replacing, and disposing of covered equipment and services within the Reimbursement Program, highlighting potential national security risks if any recipient fails to do so.
Additionally, the FCC is mandated to allocate funds first to providers serving fewer than 2 million customers, with coverage limited to 39.5% of their costs due to the funding shortfall.
Firms that have begun to receive financial assistance must adhere to specific deadlines for removing and replacing covered equipment. These deadlines vary from May 29th, 2024, to February 4th, 2025, depending on the timing of fund disbursement to each company.
Also read: US Plans to Bar Chinese Telecoms Over National Security Concerns
The FCC's decision to classify Huawei and ZTE as threats to national security results in a prohibition for telecommunication providers, barring them from utilizing government subsidy funds from the $8.3 billion Universal Service Fund to procure equipment from these companies for their networks.
However, the FCC voted unanimously to prevent telecoms from using federal funds to acquire Huawei equipment in November 2019.
The Verge reported that both corporations have consistently refuted allegations of posing threats to US national security.
Related Article: US FCC is Banning All Sales of Telecom Devices From Huawei, ZTE Over National Security Concerns
