US Passes Bill to Fund Chinese Equipment Strip-Out

The US Senate voted in favor of a bill that will provide $3 billion to telecom companies in funding for the FCC rip and replace program. It is a part of the country’s efforts to remove kits made by Chinese vendors from networks.

The government plans to fund the program through the proceeds from an FCC auction of AWS-3 spectrum. The bill dubbed the National Defense Authorization Act (NDAA), has been passed following long-time lobbying from outgoing FCC chair Jessica Rosenworcel for more funding to aid companies in stripping out equipment deemed a security risk.

Rosenworcel stated earlier in December that a large chunk of those operators required to replace equipment in their networks face a $3 billion shortfall and the situation was putting the connectivity of rural customers who depend on these networks at risk. Reacting to the favorable vote, Rosenworcel said full funding will not only help protect the nation’s communications infrastructure but also ensure the rural communities who rely on these networks maintain vital connectivity.

Industry group the US Competitive Carriers Association (CCA) has also been vocal about the need for extra funding. President and CEO of CCA, Tim Donovan, said it was overwhelmingly pleased that Congress passed legislation to fully fund the rip and replace program. “This funding has been desperately needed to meet the national security mandate created by Congress and fulfills Congress’ commitment to small and rural telecommunications carriers and the communities they serve,” he added.