US needs $5bn to completely divest telecoms equipment from Huawei and ZTE

The complete replacement of Huawei and ZTE telecommunications equipment will cost the United States nearly $5 billion, Federal Communications Commission (FCC) Chairman Jessica Rosenworcel said during a speech to Congress.

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The FCC received $1.9 billion in federal funding in the fall of 2021. Now, the commission is requesting an additional $3.08 billion in funding. So, unless additional costs are provided in the future, it will cost a total of $4.98 billion to replace the equipment.

Due to the lack of funding, the FCC has decided to primarily reimburse companies that have no more than 2 million subscribers. According to Jessica Roseworsel, the deadline for providers to apply is about to expire.

The US said several years ago that Huawei and ZTE telecommunications equipment posed a threat to national security. In 2020, a campaign was initiated to replace Chinese equipment, both in the US and in other states.

Despite the best efforts of US authorities, many countries continue to use Huawei products. In the UK, for example, 41% of 4G equipment comes from Huawei. However, the UK will exclude it from 5G network projects until 2027.

Germany, Poland, Portugal, Italy and Austria continue to buy Huawei's 5G equipment. Although it is worth noting that Germany plans to carry out a national security review. Berlin wants to make its own decision on the future of Huawei equipment, without pressure from the US.

Source: The Register