US to spend $3 billion to remove Chinese telecom equipment

(CLO) Next week, the US House of Representatives is expected to vote on a $3 billion spending bill to help US telecommunications companies remove equipment from two Chinese companies, Huawei and ZTE.

The 1,800-page bill, released Saturday night, also contains provisions on other security issues aimed at China.

Huawei branch headquarters in Paris, France. Photo: REUTERS/Gonzalo Fuentes

The US Federal Communications Commission (FCC) estimates that removing insecure Huawei and ZTE equipment would cost about $4.98 billion. However, Congress previously approved only $1.9 billion for the “rip and replace” program, leaving a $3.08 billion shortfall.

FCC Chair Jessica Rosenworcel last week called on Congress for additional emergency funding, warning that without additional funding, some rural telecom networks could shut down, which would not only take away the sole provider in some areas but also threaten emergency 911 service.

Tim Donovan, CEO of the Competitive Carriers Association, welcomed the move, saying: "The funding is critically needed to carry out the task of removing and replacing equipment and related services, while maintaining connectivity for tens of millions of Americans."

Since 2019, Congress has asked the FCC to force carriers that receive federal subsidies to remove equipment from Chinese telecom companies from their networks. In 2023, the White House has requested $3.1 billion to continue the program.

The US not only requires domestic carriers to remove Chinese telecommunications equipment, but also actively calls on allies to do the same.

Cao Phong (according to Reuters, CNN)

Source: https://www.congluan.vn/my-sap-chi-3-ty-usd-de-loai-bo-thiet-bi-vien-thong-trung-quoc-post324624.html