$3 Billion Approved to Stop Chinese Telecom in the US
The US House of Representatives is set to propose a $3 billion bill to eliminate Huawei and ZTE equipment from the US network telecom supply chain to address network security measures.
The removal of Huawei and ZTE equipment from US telecom networks shows a bigger effort toward the protection of national security and telecom resilience. The immediate goal of defending against potential cyber risks, the initiative is a new front in strengthening domestic telecom network security policy by relying on trusted suppliers and local infrastructure to cut down vulnerabilities linked with foreign technology such as China.
The move of national telecom security policy in the US is aligned with the global events that are taking place such as the UK and Australia have begun to ban 5G equipment from Huawei. The decision of the House to attach the funding with revenue from auction is a strategic one to push US wireless capabilities and broaden their infrastructure.
Telecom Supply Chain Management
The Federal Communications Commission (FCC) estimated that the cost of fully replacing the equipment was $4.98 billion. Congress has only approved $1.9 billion, creating a funding shortage of $3.08 billion.
FCC Chair Jessica Rosenworcel, who recently had been acting chair before Donald Trump’s election as the next US president, cautioned that “without additional funding, there is a real risk of providers shutting down networks,” which may leave areas “with no service and some people with no ability to call 911.”
“Without sufficient funding, small carriers in rural areas may have no choice but to turn off their networks,” Rosenworcel highlighted the possible jeopardy of telecom supply chain connectivity in regions relying on smaller telecom providers for wireless access.
Back in 2019, the movement to dismantle the gear supplied by Huawei and ZTE begun when the US Congress instructed the FCC that telecom companies receiving federal support must eliminate Chinese equipment from their networks.
Since then, this supply chain challenges in telecom move has since received bipartisan support.
Chief Executive Officer of the Competitive Carriers Association, Tim Donovan, appreciated the House’s recent funding initiative, deeming it crucial to protect the millions of Americans who are connected.
Telecom Security Policy’s New Funding
The Senate Commerce Committee has created a proposal to raise funds to implement the $3 billion plan through proceedings from an auction of advanced wireless spectrum in the AWS-3 band. The auction would enhance the supply of wireless services and also fund key enhancements of the supply chain of telecom companies in the US infrastructure.
The $500 million from the auction could also be used to set up regional technology hubs whose mandate would be to advance technological development to stimulate the local economies, Maria Cantwell the committee chair further explained.
A House vote in favor of the bill will be a reason in the advance of the security of American telecommunication networks and increase the chances of rural areas getting online. Lawmakers expect this supply chain resilience in the telecom industry to prevent the prevention on funds from resulting in network blackouts and guaranteeing the telecom supply chain quick access to emergency aid services.
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