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.
Go deeper with GlobalData
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“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.
