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Stimulus package earmarks $1.9 billion to rip and replace Huawei, ZTE equipment from U.S. networks

In June, the FCC officially designated Huawei and ZTE as national security threats, accusing the companies of having close ties to the Chinese government and its military. The designation meant that U.S. telecom companies cannot use the FCC’s $8.3 billion subsidy fund to purchase any equipment made by the two companies. After conducting a survey in September, the agency had determined that networks in the U.S. will require around $1.8 billion to replace the banned equipment.

The $7 billion broadband funding also includes an Emergency Broadband Benefit provision of $3.2 billion that will let low-income families access broadband services capped at $50-per-month. Sen. Ron Wyden (D-Ore.), the main backer of the low-cost plan, stated that access to broadband is essential for Americans seeking to get new jobs, and to access school, health care and other government services.” The funding also includes $1 billion in grants for tribal broadband programs, $300 million for rural broadband deployment and $285 million for a pilot program to help with broadband issues in historically Black colleges and universities. Forbes

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