Bill targets Huawei, ZTE in US telecoms overhaul

Huawei and ZTE face replacement as the US allocates $3 billion to secure telecom networks against security threats.
Washington blacklisted over two dozen Chinese entities for links to restricted chip technology in Huawei processors.

The US House of Representatives is preparing to vote on a defence bill proposing $3 billion for telecom companies to replace equipment from Chinese firms Huawei and ZTE. The legislation aims to address security concerns posed by Chinese technology in American wireless networks. A previous allocation of $1.9 billion was deemed insufficient for the programme, which the Federal Communications Commission (FCC) estimates will cost nearly $5 billion.

The initiative, known as the ‘rip and replace’ programme, targets rural carriers reliant on the equipment, which could lose connectivity if funding gaps persist. FCC Chair Jessica Rosenworcel warned that insufficient funding might force some rural networks to shut down, endangering services such as 911 emergency calls. Rural regions face significant risks without immediate support for the removal and replacement of insecure telecoms infrastructure.

The proposed funding would also cover up to $500 million for regional technology hubs, supported by revenue from an FCC spectrum auction. Advocates emphasise the importance of securing connectivity while maintaining services for millions of Americans. Competitive Carriers Association CEO Tim Donovan welcomed the proposed funding, calling it critical for network security and consumer access.