Small and rural network providers have made initial requests for $5.6 billion in funding in order to replace network equipment and services from Chinese vendors Huawei and ZTE in domestic networks.
That figure far outweighs the nearly $1.9 billion which Congress has appropriated for the program. Nearly 200 applications for reimbursement were submitted by telecom service providers.
The Secure and Trusted Communications Networks Act of 2019 established the rip-and-replace program, and Congress appropriated $1.9 billion to cover the anticipated costs — nearly double the $1 billion originally outlined. The program is designed to reimburse carriers with 10 million or fewer customers for the cost of removal, replacement and disposal of communications equipment or services in the network “that pose a national security risk,” according to the FCC—in this case, gear or services provided by Chinese vendors Huawei and ZTE that was purchased on or before June 30, 2020.
“Last year Congress created a first-of-its kind program for the FCC to reimburse service
providers for their efforts to increase the security of our nations communications networks,”
said Chairwoman Jessica Rosenworcel in a statement. “We’ve 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 the U.S. will continue to lead the way on 5G security.”
Eligibility for the program was expanded last year, with the FCC increasing the customer base cap size. Previously, only providers of advanced communications services with two million or fewer customers could participate in the reimbursement program; the FCC increased that cap to 10 million or fewer.
