The cost of replacing Huawei and ZTE equipment in US networks has significantly increased. Jessica Rosenworcel, the chairwoman of the Federal Communications Commission (FCC), told Congress on Friday that providers have requested for $5.6 billion in reimbursement for “ripping and replacing” equipment deemed unsecure by the US government (via Light Reading). The FCC predicted the effort would cost $1.8 billion in September 2020, while Congress authorized roughly $1.9 billion in December 2020.
The FCC, however, received “over 181 applications from carriers who have devised plans to remove and replace devices in their networks that pose a national security danger,” according to Rosenworcel. She continued, “I look forward to working with Congress to ensure that enough funding is available for this initiative to fulfill Congress’s security priorities and ensure that the United States continues to lead the field on 5G security.”
After intelligence agencies expressed worries about carriers expanding their 5G networks with equipment from Chinese corporations like Huawei, the Supply Chain Reimbursement Program was established. Former FCC Chairman Ajit Pai declared ZTE and Huawei to be national security threats, thereby prohibiting telecom companies from buying their equipment. However, several carriers had already purchased and installed equipment from the manufacturers at that time, and smaller telecoms said they couldn’t afford to replace it (especially since the main draw of the Chinese equipment was its low cost compared to other providers).
The program was created to “reimburse advanced communications service providers for reasonable costs incurred in removing, replacing, and disposing of communications equipment and services” from ZTE and Huawei. After evaluating networks using Chinese technology in 2020, the FCC predicted that “removal and replacement” would cost over $1.8 billion, with roughly $1.6 billion eligible for reimbursement.
While carriers submitted more than three times that amount during the three-month filing period (which ended at the end of January), the ultimate bill won’t necessarily be $5.6 billion — for one thing, Congress hasn’t approved the funds yet. On Friday, Rosenworcel tweeted that the applications were being evaluated, implying that the total may be reduced.
Jessica Rosenworcel mentioned on her Twitter handle :
“Over 181 applications have been received from carriers with plans to remove and replace equipment in their networks that poses a national security hazard.”
“While we still have work to do in reviewing these applications, I am looking forward to working with Congress to ensure that enough funds is available for this program to fulfill Congress’s security priorities and keep America at the forefront of #5G security.”
