US House to vote to provide $3 billion to remove Chinese telecoms equipment
The U.S. House of Representatives is set to vote next week on an annual defense bill that includes $3 billion to support U.S. telecom companies in removing equipment made by Chinese telecom firms Huawei and ZTE from American wireless networks. This measure aims to address security risks posed by these companies’ equipment, which the U.S. government has deemed potentially harmful to national security.
Key details about the bill and the funding:
- The FCC (Federal Communications Commission) has estimated that removing the insecure equipment will cost about $4.98 billion, but previous funding approved by Congress was only $1.9 billion, leaving a $3.08 billion shortfall.
- FCC Chair Jessica Rosenworcel has expressed urgent need for additional funding, warning that the lack of support could put both national security and the connectivity of rural consumers at risk. She noted that without sufficient funding, rural networks might be forced to shut down, potentially eliminating the only service provider in some areas and threatening 911 services.
- Competitive Carriers Association CEO Tim Donovan praised the announcement, stressing the importance of funding to maintain connectivity while replacing the Chinese-made equipment.
The bill also includes other provisions aimed at addressing China’s influence, such as:
- A requirement for a report on Chinese efforts to evade U.S. national security regulations.
- An intelligence assessment of China’s biotechnology capabilities.
This bill comes after years of pressure from the U.S. government, which in 2019 ordered the FCC to mandate that telecom carriers receiving federal subsidies remove Chinese-made gear. In 2023, the White House requested $3.1 billion for this purpose.
The bill’s funding for the rip-and-replace program and additional money for regional tech hubs will be supported by proceeds from a spectrum auction by the FCC, which will help meet the increasing demand for wireless spectrum.
