Rural US Carriers Secure $1.9B to Rip Out Chinese Equipment

Financial relief is finally on the way for rural U.S. carriers that are required to remove Chinese equipment from their networks. Financial relief is finally on the way for rural U.S. carriers that are required to remove Chinese equipment from their networks. A $900 billion coronavirus relief bill passed by Congress earlier this week includes $1.9 billion to fund the Secure and Trusted Communications Networks Act that became law in the early weeks of the COVID-19 crisis.  A corresponding program run by the Federal Communications Commission (FCC) and unanimously adopted earlier this month mandates that any equipment or services deemed to be a national security risk must be ripped out of all domestic networks. The FCC said it will publish a list of vendors that fall under that criteria, but Huawei and ZTE are the biggest targets.  The U.S. government has been running a years-long and multi-pronged campaign to rip out and replace network communications equipment supplied by Chinese vendors, but funding for that effort in particular was absent prior to the passage of this week’s bill.  Rural U.S. carriers most impacted by the “rip and replace” mandate have been lobbying for a government reimbursement to offset the costs of swapping out equipment considered insecure. The Competitive Carriers Association (CCA), which represents many of these tier-two and tier-three operators applauded the appropriation of funds this week.  “I cannot stress enough the significance of fully funding the Secure and Trusted Communications Networks Reimbursement Program. Carriers with covered network elements now have the assurance they need to move forward with replacing necessary equipment, while still being able to provide seamless coverage to their customers,” CCA President and CEO Steve Berry said in a statement. The $900 billion stimulus package earmarks $7 billion for broadband initiatives, including $3.2 billion for low-income broadband access through the FCC, $1.3 billion for broadband grants to be dispersed by the Commerce Department including $1 billion to improve broadband in tribal lands, and $65 million to improve broadband data mapping.  “This is a giant step in the right direction. The COVID-19 pandemic has only highlighted the need to ensure that every American, including those in remote and rural areas, have access to mobile broadband services,” Berry said. FCC Chair Ajit Pai, who is leaving the agency in January, said he was pleased by Congressional actions on these matters. Funding for the “rip and replace” program will help the agency ensure that insecure equipment is removed from U.S. networks, thereby strengthening network and national security, he said in a statement. “Too many people in too many places are struggling without the ability to go online. With so much of modern life now dependent on internet access, no one should have to choose between paying a broadband bill and paying rent or buying groceries,” FCC Commissioner Jessica Rosenworcel said in a statement. “This legislation is only a start, but it is important because it is the beginning of what needs to be a national effort to connect 100% of us to broadband,” she added. As this calamitous year comes to a close, America’s smaller carriers are breathing a sigh of relief knowing that government funding will be available to adequately compensate them for the removal and replacement of equipment and services from vendors that are designated as national security risks.