This year’s defense authorization bill includes full funding for the rip and replace program for telecom networks
The U.S. Senate passed the National Defense Authorization Act, or NDAA, sending the legislation to President Joe Biden’s desk. The $895 billion bill includes full funding for the Secure and Trusted Communications Network Reimbursement Program, otherwise known as the rip and replace program, to remove gear and services from companies that have been identified by the U.S. government as national security threats.
The NDAA would authorize $3.08 billion for cellular companies to remove and replace sensitive telecommunications equipment. This is in addition to $1.9 billion that Congress has already allocated.
“We are overwhelmingly pleased that Congress has passed legislation to fully fund the ‘Rip and Replace’ program as part of the 2025 National Defense Authorization Act (NDAA),” said Competitive Carriers Association President and CEO Tim Donovan in a statement. “This funding has been desperately needed to meet the national security mandate created by Congress and fulfills Congress’s commitment to small and rural telecommunications carriers and the communities they serve.”
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 was first 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 other words, gear or services provided by Chinese vendors, including Huawei and ZTE, that was purchased on or before June 30, 2020. The program was expanded along the way to increase the size of eligible operators.
That $1.9 billion in funding ended up falling far short of the estimated costs of removal. Network operators had requested $5.6 billion in 2022 to cover the costs; the FCC eventually estimated costs at $4.98 billion.
The plan is to pay for the rip and replace program through an auction of AWS-3 spectrum. The NDAA gives the Federal Communications Commission limited authority under which to auction that spectrum.
The FCC has been without the legal authority to auction spectrum since early 2023, despite urging from multiple wireless industry organizations and companies as well as FCC Chairwoman Jessica Rosenworcel herself.
Rosenworcel’s statement on the rip and replace funding said, in part: “Full funding will not only help protect our Nation’s communications infrastructure but also ensure that rural communities who rely on these networks maintain vital connectivity. I want to thank the House and the Senate for allocating the full amount required to protect our Nation’s communications networks, and for recognizing that the FCC’s spectrum auction authority can play an important national security role. I call on Congress to restore it in full.”
Patrick Halley, president and CEO of the Wireless Infrastructure Association, praised the funding of the rip and replace program and added: “While granting limited spectrum auction authority was necessary to get this done, it is critical to our nation’s economic growth and security for Congress to pass a bill in the New Year providing a comprehensive spectrum pipeline with a long-term extension of auction authority.”
Dave Stehlin, CEO of the Telecommunications Industry Association, commented: “I’ve experienced, firsthand, how state-owned covered entities operate on the global stage, threatening the security of our networks. The security of our information communications technology networks is of paramount importance, and we will continue to work with operators and manufacturers to ensure that our networks are deployed with trusted vendors.
“Ensuring the security and resiliency of U.S. communications networks remains a primary goal for TIA,” Stehlin continued. “By fully funding this program, Congress is demonstrating their support of carriers nationwide as they continue their efforts to remove untrustworthy equipment. The recent high-profile and significant intrusions across ICT networks demonstrates that more must be done to secure our critical communications infrastructure.”
