The U.S. House of Representatives is scheduled to vote next week on an annual defense bill that includes a $3 billion budget allocation for replacing Chinese-made telecom equipment from companies like Huawei and ZTE. This move aims to address national security concerns associated with the use of foreign-manufactured hardware.
Since 2019, Huawei and ZTE have been under scrutiny in the U.S., facing trade sanctions. The U.S. government is taking further steps to mitigate potential security risks posed by their telecom equipment. The Federal Communications Commission (FCC) previously estimated the total cost of removing this equipment to be $4.98 billion, significantly higher than the currently allocated budget.
With Congress having previously approved only $1.9 billion, a substantial funding gap remains. FCC Chair Jessica Rosenworcel recently urged Congress to provide additional funding to replace equipment for 126 carriers. Rosenworcel warned that a lack of funding could lead to rural network shutdowns and disruptions to 911 services.
While the new funding is welcomed, concerns remain about the overall cost of replacing the equipment, especially given Huawei and ZTE's dominant market share and competitive pricing. Reuters reports that some EU countries are also facing pressure to replace Huawei equipment but are hesitant due to the high costs involved.
