US to Increase Funding to Replace Chinese Network Equipment

The US House of Representatives will vote on a new defense bill that could provide telecom companies in the country more than $3 billion. The funds should aid efforts to strip out kits made by Huawei and ZTE.

The vote is one of many provisions included in an 1800-page document aimed directly at China. The report includes an intelligence assessment of the state of China’s biotechnology capabilities and a look into alleged efforts to avoid US security regulations.

Funding for the US’ rip and replace program has been a hot topic. Federal Communications Commission chair Jessica Rosenworcel has long lobbied for the US government to approve more than $3 billion in funding to remove equipment deemed a security risk. She stated in May that nearly 40% of participants involved in the program claimed they could not complete the swap out without additional funding.

She followed up on her comments last week, stating the program to replace equipment in networks of 126 operators faces a shortfall of around $3 billion. Rosenworcel added this puts national security and the connectivity of rural consumers who depend on these networks at risk.

Operators serving less than 10 million customers could be in line to claim expenses for costs incurred in removing kits made by Chinese vendors. A total of $1.9 billion has been allocated to the program, but the FCC estimates the cost could run up to just shy of $5 billion. Biden administration asked for $3.1 billion in 2023, but Congress did not approve the request.