Wireless network providers in the United States are now requesting the FCC or Federal Communications Commission for a budget of $5.6 billion in order to remove "Chinese equipment from American wireless networks."
This would mean the existing Huawei and ZTE infrastructure would be out of the picture.
US Carriers Request $5.6 Billion in Reimbursements
According to Jessica Rosenworcel, the FCC Chairwoman, US carriers have requested for reimbursements in order for them to to take down and replace infrastructure owned by Huawei and ZTE. In addition, the reimbursements would cost approximately $5.6 billion in total.
A vote was made unanimously back in 2019 to "ban US carriers from using the Universal Service Fund." This was done so that the cost of purchasing certain network equipment, which was regarded by the FCC as a threat to national security, was subsidized.
Huawei and ZTE Added to the List of 'National Security Threat' Companies as per FCC
ZTE and Huawei have been added to the list of companies that the FCC regarded as a threat to the country's security. In addition, the Secure and Trusted Telecommunications Networks Act mandated carriers to remove and replace the equipment from the aforementioned companies.
That same year, the FCC also established a particular program with a goal of reimbursing smaller . Ttelecom operators. This so that these operators will be able to replace the equipment that was considered a risk to national security by the law.
Agency Estimates Budget of Just $1.9 Billion
Per the agency's estimations, a budget of $1.9 billion was set aside in order to cover the costs of reimbursements. A factor that contributed to the budget is that estimates for the total amount it would take over $1.8 billion for carriers carriers to comply with the order.
According to the story by Engadget, Rosenworcel gave a statement, which said that while the agency still has "more work to do" as far as reviewing applications is concerned, she is looking forward to working with Congress so that can be ensured that the program will receive adequate funding.
Funding to Replace Chinese Equipment from American Networks
Rosenworcel also noted that make sure the funding is available is very crucial in advancing the security goals of Congress. She also said that it is likewise just as important to "ensure that America will come to lead the way on 5G security."
Before the official filing window closed last Jan. 28, US carriers sent a total of 181 applications to the FCC in order to get funding support. However, the agency currently has enough budget to grand one-third of funding support requests received.
However, it is still unknown as of press time whether or not the agency will be able to add to its budget in the future. It likewise remains to be seen if the current budget of the FCC will be enough so that Americcan carriers will not have to use Huawei or ZTE equipment any longer.
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This article is owned by Tech Times
Written by Urian B.
