Tags: China | huawei | zte | carriers | fcc | congress

Replacing Huawei, ZTE Hardware Could Cost Carriers $1.8B

woman wearing a mask walks by a huawei store in beijing
(Nicolas Asfouri/Getty Images)

By    |   Friday, 04 September 2020 02:41 PM

It could cost U.S. carriers over $1.8 billion to remove and replace ZTE and Huawei equipment, according to estimates provided to the Federal Communications Commission.

Engadget noted that the estimates were provided by the carriers. However, more than $1.6 billion could be eligible for reimbursement. But Congress has yet to appropriate the money.

And Engadget pointed out it could present a problem for small carriers, who would face hefty bills.

In June, the FCC formally designated the two Chinese companies as posing threats to U.S. national security.

It had voted in November 2019 to issue the declaration and proposed requiring carriers to remove and replace equipment from the companies from existing U.S. networks. 

The FCC also barred U.S. firms from tapping a fund to purchase equipment from the companies.

A process to reimburse carriers for the cost of replacing the companies’ equipment was set up in March, but Congress has yet to appropriate the funds.

“By identifying the presence of insecure equipment and services in our networks, we can now work to ensure that these networks — especially those of small and rural carriers — rely on infrastructure from trusted vendors,” FCC Chairman Ajit Pai said.

“I once again strongly urge Congress to appropriate funding to reimburse carriers for replacing any equipment or services determined to be a national security threat.”

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It could cost U.S. carriers over $1.8 billion to remove and replace ZTE and Huawei equipment, according to estimates provided to the Federal Communications Commission. Engadget noted that the estimates were provided by the carriers. However, more than $1.6 billion could be...
huawei, zte, carriers, fcc, congress
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2020-41-04
Friday, 04 September 2020 02:41 PM
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