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The US is around $3bn short of replacing Chinese telecommunications infrastructure, according to the FCC.
FCC Chair Jessica Rosenworcel wrote to US Congress today attempting to secure further funding for the FCC’s “rip and replace” programme to remove telco infrastructure supplied by Huawei or ZTE Corporation.
The FCC stated that this programme is intended to secure the US’ telco infrastructure against national security risks and improve network reliability.
In her letter, Rosenworcel stated that the rip and replace programme should be the FCC’s top priority but that it was severely lacking in funding.
The FCC is conducting a reimbursement programme to fund the replacement of Chinese tech and facilitate the removal of Huawei and ZTE Corporation technology from the US telco infrastructure.
So far, the FCC has only been given $1.9bn towards reimbursements but Rosenworcel estimated that it could actually cost around $4.98bn to replace all Huawei and ZTE Corporation tech.
“This program secures our communications networks by supporting the removal, replacement, and disposal of communications equipment and services produced or provided by Huawei Technologies Company or ZTE Corporation,” Rosenworcel’s letter to Congress read.
“I am writing… to emphasize again the urgent need for full funding of the Reimbursement Program,” she wrote.
Nearly 40% of the participant companies replacing Chinese tech stated that they need more funding to properly replace it to avoid a network outage.
A lack of funding has also pushed back the original rip and replace deadline to beyond its original target of July 2023.
“Several recipients have recently informed the Commission that they foresee significant consequences that could result from the lack of full funding, including having to shut down their networks or withdraw from the program,” wrote Rosenworcel.
“Because Reimbursement Program recipients serve many rural and remote areas of the country where they may be the only mobile broadband service provider, a shutdown of all or part of their networks could eliminate the only provider in some regions,” she continued.
Rosenworcel’s full letter can be found here.
"US needs $3bn to replace Chinese telco infrastructure, says FCC" was originally created and published by Verdict, a GlobalData owned brand.
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