According to the responsible regulator, the FCC, telecom companies in the US urgently need additional resources to remove Chinese components from their networks. Nearly 40 percent of U.S. companies that have received government assistance need further support, FCC Chief Jessica Rosenworcel said in a statement to Congress. Some have warned that they may have to turn off their networks.
The costs of removing the technology from Huawei and ZTE are estimated at almost five billion dollars (4.67 billion euros). Only $1.9 billion has been approved as part of the Rip and Replace program.
Due to their proximity to the government in Beijing, Chinese companies such as Huawei are under increased scrutiny in many countries. The concern is that China could gain direct or indirect access to mobile phone users’ data.
The US has classified Huawei and ZTE as national security threats. Congress ordered the FCC in 2019 to require subsidy recipients among US telecom companies to remove Chinese equipment. The presidential office requested another $3.1 billion for this in October. Congress has not yet approved the funds.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
