The Federal Communications Commission (FCC) program that aims to remove Chinese equipment from American wireless networks will cost billions more than anticipated. Affected companies have requested $5.6 billion to remove, replace and dispose of this equipment.
Back in 2019, the FCC voted unanimously to ban US carriers from using national funds to purchase networking equipment from sources that could be a "national security threat." Two firms included on the list were wireless carrier Huawei Technologies Company and internet service provider ZTE Corporation.
Sometime in 2020, former President Donald Trump mandated to remove and replace the equipment. The program is being implemented, but officials recently encountered a budget shortage.
FCC Rip and Replace Program: Huawei and ZTE
FCC initially set up a $1.9 billion fund before the ban went into effect. This should have been used to help affected companies search for replacement hardware.
FCC tweeted the official announcement on their social media page. They said the Supply Chain Reimbursement Program in the Secure and Trusted Communications Networks Act will reimburse affected parties "for reasonable expenses incurred in the removal, replacement, and disposal of covered communications equipment and services."
Congress created the Supply Chain Reimbursement Program in the Secure and Trusted Communications Networks Act to reimburse providers for reasonable expenses incurred in the removal, replacement and disposal of covered communications equipment and services. https://t.co/LfPV8j3Dnv
— The FCC (@FCC) February 4, 2022
However, on February 4, FCC Chairwoman Jessica Rosenworcel told Congress that companies have "initially requested approximately $5.6 billion from the Secure and Trusted Communications Networks Reimbursement Program to cover the costs of removing, replacing, and disposing of insecure equipment and services in US networks," per PC Mag.
It should be emphasized that the $5.6 billion is only an "initial" request, which implies more expenses can still be incurred in the long run.
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Rosenworcel tweeted that they have "received over 181 applications from carriers who have developed plans to remove and replace equipment in their networks that pose a national security threat."
While we have more work to do to review these applications, I look forward to working with Congress to ensure that there is enough funding available for this program to advance Congress’s security goals and ensure that America will continue to lead the way on #5G security.
— Jessica Rosenworcel (@JRosenworcelFCC) February 4, 2022
Rosenworcel said FCC is reviewing the applications to ensure that enough funding will be available for the program. She also promised that Congress aims to improve America's national security and 5G connectivity.
Unfortunately, Rosenworcel did not elaborate whether FCC will raise their budget or if it would be limited to a set amount. It can be assumed that FCC and Congress are still deliberating about the topic.
FCC Programs: The Fight Against National Security Threats
The New York Times noted that lawmakers and regulators have recently focused their attention on the potential threat of Chinese phone carriers. Note that these companies have already spread their influence across various states, which is the main reason for the shocking budget costs.
Taking into consideration, the FCC might continue to face challenges as it further implements its rip and replace program.
The FCC has yet to elaborate its plans to advance forward. They also failed to share details on whether the funds are ready for distribution to affected firms. For now, fans interested in the news are recommended to watch out for updates through news outlets.
