Consumer reports, FCC monitoring

FCC: 40% of U.S. Telecoms Need More Funds to Replace Huawei, ZTE Equipment, Risk to Rural Service

May 2, 2024, 07:30 PM

The Federal Communications Commission (FCC) has indicated that nearly 40% of U.S. telecom companies require additional government funding to replace Huawei and ZTE equipment, which were previously designated as national security threats. This situation has arisen despite the FCC's 2020 decision to prohibit U.S. telecoms from using federal funds to purchase equipment and services from these companies. The urgency of the funding needs is underscored by warnings that some rural areas might lose cell service if the necessary financial support is not provided. Small carriers, in particular, are struggling with delayed Huawei rip-and-replace funds and the financial burden of replacing the Chinese-made equipment.