US House Set to Approve $3 Billion Fund to Replace Chinese Telecom Gear

The US House of Representatives is poised to approve a bill that would allocate $3 billion in funding to help US telecom providers remove and replace Chinese-made telecommunications equipment from their networks. The move is aimed at addressing national security concerns surrounding the use of equipment from companies like Huawei and ZTE, which have been deemed a security risk by the US government.

The bill, which is expected to pass with bipartisan support, would provide funding to small and rural telecom providers to help them replace equipment from Chinese companies with gear from trusted vendors. The legislation is seen as a crucial step in ensuring the security and integrity of US telecom networks, which are critical to the country’s economic and national security.

The US government has long been concerned about the potential security risks posed by Chinese-made telecom equipment, particularly in the wake of the Huawei CFO’s arrest in Canada and the subsequent US ban on the company’s products. In May 2020, the US Federal Communications Commission (FCC) designated Huawei and ZTE as national security risks, citing their ties to the Chinese government and the potential for their equipment to be used for espionage.

The FCC’s designation made it difficult for US telecom providers to use federal funding to purchase equipment from these companies. However, many small and rural providers had already installed equipment from Huawei and ZTE in their networks, and replacing it would be a costly and time-consuming process.

The $3 billion funding package aims to address this issue by providing financial assistance to these providers to help them replace the Chinese-made equipment with gear from trusted vendors. The funding would be administered by the FCC, which would work with the telecom providers to identify and prioritize the replacement of equipment from Huawei and ZTE.

The bill has received widespread support from lawmakers on both sides of the aisle, who see it as a critical step in ensuring the security and integrity of US telecom networks. “This bill is a necessary step to protect our national security and ensure that our telecom networks are safe from foreign interference,” said Rep. Anna Eshoo (D-CA), the chair of the House Energy and Commerce Committee’s Subcommittee on Communications and Technology.

The bill has also received support from the telecom industry, which has been working to address the security risks posed by Chinese-made equipment. “We applaud the House for taking this important step to ensure the security and integrity of our nation’s telecom networks,” said a spokesperson for the US Telecom Association.

The Senate is also expected to take up the bill, which is likely to pass with bipartisan support. Once the bill is signed into law, the FCC would begin working with telecom providers to identify and prioritize the replacement of equipment from Huawei and ZTE.

The $3 billion funding package is seen as a significant investment in the security and integrity of US telecom networks. However, some lawmakers have expressed concerns that the funding may not be enough to cover the full cost of replacing the Chinese-made equipment. “We need to ensure that we are providing enough funding to cover the full cost of replacing this equipment,” said Rep. Greg Walden (R-OR), the ranking member of the House Energy and Commerce Committee.

Despite these concerns, the bill is expected to pass with widespread support. The funding package is seen as a critical step in ensuring the security and integrity of US telecom networks, and lawmakers are eager to move forward with the legislation.

In addition to the funding package, the bill also includes provisions aimed at promoting the development of 5G technology and ensuring that US telecom networks are secure and resilient. The legislation would require the FCC to work with the National Institute of Standards and Technology (NIST) to develop standards for 5G security, and would provide funding for research and development of 5G technology.

The bill would also establish a program to provide funding for the development of open radio access network (RAN) technology, which is seen as a key component of 5G networks. The program would provide funding for the development of open RAN technology, which would allow telecom providers to use equipment from multiple vendors in their networks.

Overall, the $3 billion funding package is seen as a significant investment in the security and integrity of US telecom networks. The legislation is expected to pass with bipartisan support, and would provide critical funding to help small and rural telecom providers replace Chinese-made equipment with gear from trusted vendors.

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