FCC to reimburse $1.9 billion to replace Huawei, ZTE equipment in U.S networks
Jul.14,2021

According to media reports, the U.S. Federal Communications Commission (FCC) voted unanimously to approve a compensation plan involving $1.9 billion to assist U.S carriers, mainly the ones in rural areas, in replacing their network equipment from Chinese companies such as Huawei and ZTE.

Earlier, the FCC officially listed Huawei and ZTE as national security threats, banning U.S. companies from using $8.3 billion in government funds to buy equipment from the two companies.

Last December, the FCC finalized a plan to require carriers that use ZTE or Huawei equipment in their networks to remove or replace them, as the use of Huawei and ZTE equipment in U.S. networks is considered detrimental to national security.

However, only a few carriers have chosen to remove Huawei and ZTE equipment already in use, primarily because carriers cannot afford the cost without federal assistance.

The FCC estimates that removing Huawei and ZTE equipment from U.S. networks will cost $1.8 billion, of which $1.6 billion will be eligible for federal reimbursement. Last December, U.S. lawmakers were expected to approve a $1.9 billion grant program to help replace telecom network equipment from Huawei, ZTE, and other companies.

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