Next week, the U.S. House of Representatives plans to vote on an annual defense bill that allocates over $3 billion to help American telecom companies remove equipment from Chinese manufacturers Huawei and ZTE.
The push to remove Huawei and ZTE gear began in earnest in 2019, when Congress instructed the FCC to ensure federally subsidized carriers eliminated Chinese telecom equipment from their networks.
The Biden administration reinforced this commitment in 2023 by requesting $3.1 billion to fund the initiative fully.
This effort aims to address potential national security concerns tied to such equipment, which has been targeted by U.S. regulators for its perceived risks.
The comprehensive 1,800-page legislation, revealed late Saturday, contains other measures focused on countering China.
These include requiring an intelligence assessment of China’s advancements in biotechnology and a report on how Beijing may be attempting to bypass U.S. national security regulations.
These provisions are Washington’s broader strategy to curb Chinese influence in critical sectors like; network infrastructures, semiconductors (chips), and AI.
A program to replace insecure telecom equipment has been a top priority for the Federal Communications Commission (FCC), which estimated the total cost at $4.98 billion.
However, Congress had only previously approved $1.9 billion for this “rip and replace” initiative. The funding shortfall has raised concerns, with FCC Chair Jessica Rosenworcel urging lawmakers to allocate the remaining $3.08 billion.
Without this additional support, Rosenworcel warned, rural networks—some of which are the sole providers in certain regions—could face shutdowns, jeopardizing connectivity and even critical 911 emergency services.
Competitive Carriers Association CEO Tim Donovan lauded the proposed funding, emphasizing its importance for maintaining connectivity for millions of Americans while fulfilling the mandate to replace the compromised equipment.
The rural telecom carriers most affected by these requirements are particularly reliant on federal assistance to meet the program’s goals.
Senate Commerce Committee Chair Maria Cantwell highlighted a key funding source: proceeds from a one-time spectrum auction managed by the FCC.
This auction, covering advanced wireless spectrum in the AWS-3 band, aims to address increasing spectrum demands from consumers while providing up to $500 million for regional tech hubs and other critical technology initiatives.
Washington’s broader campaign to rid U.S. networks of Huawei and other Chinese equipment has also extended to its allies, as the U.S. pressures global partners to follow suit.
