US House to vote to provide $3 billion to remove Chinese telecoms equipment
The US House of Representatives will vote next week on an annual military bill that includes just over $3 billion for US telecom companies to remove Huawei and ZTE (000063.SZ) equipment from American wireless networks to address security issues.
The 1,800-page draft was issued late Saturday and includes additional clauses aimed at China, such as demanding a report on Chinese efforts to circumvent US national security restrictions and an intelligence assessment of China’s present biotechnology capabilities.
The Federal Communications Commission estimates that eliminating unsecure equipment will cost $4.98 billion, while Congress previously funded only $1.9 billion for the “rip and replace” program. Washington has actively pressured US allies to remove Huawei and other Chinese equipment from their wireless networks.
Last week, FCC Chair Jessica Rosenworcel called on Congress to provide urgent additional funding, stating that the program to replace equipment in the networks of 126 carriers faces a $3.08 billion shortfall, “putting both our national security and the connectivity of rural consumers who depend on these networks at risk.”
She has warned the lack of funding could result in some rural networks shutting down, which “could eliminate the only provider in some regions” and could threaten 911 service.
Competitive Carriers Association CEO Tim Donovan on Saturday praised the announcement, saying “funding is desperately needed to fulfill the mandate to remove and replace covered equipment and services while maintaining connectivity for tens of millions of Americans.”
In 2019, Congress directed the FCC to force US telecom operators that receive federal subsidies to rid their networks of Chinese telecom equipment. In 2023, the White House requested $3.1 billion to fund the initiative. Senator Maria Cantwell, chair of the Senate Commerce Committee, said funding for the program and up to $500 million for regional tech hubs will come from the FCC’s one-time spectrum auction for advanced wireless spectrum in the AWS-3 band to help meet rising spectrum demands from wireless consumers.
