FCC’s ‘rip and replace’ for ZTE and Huawei balloons to $5.6B

Chairwoman Jessica Rosenworcel notified Congress that providers have initially requested approximately $5.6 billion from the Secure and Trusted Communications Networks Reimbursement Program to cover the costs of removing, replacing, and disposing of insecure equipment and services in U.S. networks.

“Last year Congress created a first-of-its kind program for the FCC to reimburse service providers for their efforts to increase the security of our nations communications networks,” said Chairwoman Rosenworcel. “We’ve received over 181 applications from carriers who have developed plans to remove and replace equipment in their networks that pose a national security threat. While we have more work to do to review these applications, I look forward to working with Congress to ensure that there is enough funding available for this program to advance Congress’s security goals and ensure that the U.S. will continue to lead the way on 5G security.”

The Supply Chain Reimbursement Program will reimburse providers of advanced communications services for costs reasonably incurred for removing, replacing, and disposing of communications equipment and services produced or provided by Huawei Technologies Company and ZTE Corporation. The Commission opened the filing window for the program on October 29, 2021, and the window closed on January 28, 2022.

The Supply Chain Reimbursement Program was created by Congress in the Secure and Trusted Communications Networks Act to reimburse providers for reasonable expenses incurred in the removal, replacement, and disposal of covered communications equipment and services.

CT Bureau