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A US annual defence bill that would see equipment made by Chinese telcos removed from American wireless networks is set to be voted on in the US House of Representatives.
Among other moves to improve security against China, the bill will allocate over US$3 billion (A$4.7 billion) to US telcos for the removal of networking equipment developed by Chinese telecoms such as ZTE and Huawei.
The “Rip and Replace” program, which was originally only granted US$1.9 billion (almost A$3 billion), is expected to cost US$4.98 billion (A$7.8 billion), according to the Federal Communications Commission (FCC).
The program, originally called the Secure and Trusted Communications Networks Reimbursement Program, was established in the Secure and Trusted Communications Act 2019.
The additional funding has been heavily pushed by FCC chair Jessica Rosenworcel, who wrote to Congress on 2 December saying that the lack of funding will heavily impact telco operations, saying that the lack of funding could jeapordise both the connectivity of those in remote areas and the country’s national security.
“Some participants in the Reimbursement Program have informed the FCC that they fear that they may need to shut down portions of their networks and withdraw from this process without completing the removal of insecure equipment,” wrote Rosenworcel.
“Because so many of the Reimbursement Program participants serve rural and remote areas of the country, any shut down of network facilities could remove the only provider available.”
Tim Donovan, CEO of the Competitive Carriers Association, commended the push for funding.
“Funding is desperately needed to fulfil the mandate to remove and replace covered equipment and services while maintaining connectivity for tens of millions of Americans,” Donovan said.
Congress had previously told the FCC that US telcos that receive government subsidies are required to remove Chinese equipment from their networks.
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