U.S. needs $4.98 billion to remove Huawei, ZTE from its communications networks, regulators say

IT House, July 16 (Reuters) – The U.S. telecoms regulator told Congress on Friday that it needed another $3 billion in funding to remove equipment made by telecom giants Huawei and ZTE from U.S. networks at a total cost of $4.9 billion.

“Funding all reasonable and supported cost estimates … and $4.98 billion in reimbursement, reflecting a current funding gap of $3.08 billion,” FCC Chair Jessica Rosenworcel Five said in a letter to Sen. Maria Cantwell, chair of the Commerce, Science and Transportation Committee.

With only $1.9 billion allocated by Congress to fund the process, U.S. companies are only able to reimburse roughly 40 percent of the cost, she added.

IT House understands that the U.S. Congress passed a bill in 2019 requiring the Federal Communications Commission (FCC) to force those U.S. telecom operators receiving federal subsidies to remove “networks of telecommunications equipment that pose a threat to national security,” and promised compensation .

At the time, the FCC viewed Huawei and ZTE equipment as a threat, forcing U.S. companies to remove such equipment or keep it out of an $8.3 billion government fund. However, Congress allocated only $1.9 billion to fund the so-called “removal” program, raising questions about its effectiveness.

“In the absence of additional funding, the committee will use the prioritization scheme designated by Congress,” Rosenworcel said in the letter, adding that “the funding will be released in the coming days” and the committee will begin processing reimbursement applications. Of course, the companies don’t need to do the work before they receive compensation, and Congress has nothing to say.