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US-China relations
China

US telecoms carriers can access fund to replace Huawei, ZTE equipment starting on October 29, FCC says

  • Federal Communications Commission approves rules to guide the allocation of a US$1.9 billion fund established by Congress in December
  • Carriers with up to 10 million customers are now eligible to apply for the money, raising the previous cap of 2 million users

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Huawei and ZTE have denied allegations that they could give network access to foreign interests. Photo: Reuters
Jodi Xu Klein

The US Federal Communications Commission said on Tuesday that rural telecoms carriers could start requesting reimbursement for the cost of removing and replacing Huawei Technologies and ZTE equipment on October 29.

The FCC set the date after approving rules changes that guide the allocation of a US$1.9 billion fund established by Congress in December.

“We put the finishing touches on the reimbursement programme. That means carriers can start planning for their applications and their new networks,” said Jessica Rosenworcel, the acting FCC chairwoman.

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The money is crucial in implementing a law signed by then-president Donald Trump in March 2020 that requires the removal of equipment made by the two Chinese companies because of national security concerns.

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“There is a serious risk that this equipment may be manipulated, disruptive or controlled by foreign actors,” said Rosenworcel.

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