US plans $3 billion funding for telecoms to remove Huawei network equipment

A new report says that the US will be funding around $3 billion to its telecoms for removing Huawei and ZTE network equipment. The authorities are seeking measures to address security risks in the country due to China-made 5G network techs.

US is looking for new ways that keep Huawei and other Chinese firms far away from its boundaries. The authorities are now preparing a new annual defense bill. This initiative will provide funds to telecoms for pulling off Chinese tools from their cores.

The US House of Representatives will vote for a new bill related to funding $3 billion to telecoms for removing Huawei and ZTE network equipment. The authorities readied a 1800-page file including provisions against Chinese telecom companies.

Earlier, the FCC (Federal Communications Commission) mentioned that the Chinese network equipment removal requires around $4-5 billion. However, due to some unknown reasons, the US authorities only approved $1.9 billion at that time.

Jessica Rosenworcel – the Chairwoman of the FCC asked the US government last week to offer urgent funding at the earliest. She stated that the ‘rip and replace’ plan has a shortfall of $3.08 billion and needs more funding to perform effectively.

“…shortage of funds is putting both our national security and the connectivity of rural consumers who depend on these networks at risk.” – said Jessica Rosenworcel.

Lack of funds can eventually lead to the closure of rural networks eliminating the major network providers in some regions. This may further disturb the 911 service.

US plans $3 billion funding for telecoms to remove Huawei network equipment (Image Credits: Huawei)

US Budget 2025

The US government decided to pass a billion in the 2025 defense budget on this subject. A $3 billion funding may help more than 100 US telecoms to pull out the Chinese network equipment from their cores. The CEO of Competitive Carriers Association – Tim Donovan said:

“…funding is desperately needed to fulfill the mandate to remove and replace covered equipment and services while maintaining connectivity for tens of millions of Americans.”

The Chairperson of the Senate Commerce Committee – Maria Cantwell noted that the funding will come from the AWS-3 advanced wireless spectrum sale. It will help the US telecom industry to meet the wireless network needs and break chains of Huawei/ZTE network equipment.

The US has been fighting against Huawei network equipment for a long while. With a new bill, the authorities believe in swapping away all the Huawei and ZTE equipment.

But it seems the assumed funds won’t be enough to remove and replace the effective network solutions of Huawei from the American cores. Let’s see how this “rip and replace” program proceeds in the time ahead.

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