US lawmakers create US$1.9 billion fund to help carriers remove Huawei and ZTE equipment from their systems
- Covid-19 relief package includes subsidies to ‘rip and replace’ equipment deemed to be threats to national security
- Funding follows moves by the US Federal Communications Commission to require the removal of such systems
Tucked into the Covid-19 relief package that the US Congress passed late on Monday night was US$1.9 billion in subsidies for US telecoms carriers to remove and replace Huawei Technologies and ZTE Corp networks and equipment that have been deemed national security threats.
The US Federal Communications Commission (FCC) first raised the idea early last year to remove and replace those systems, but since then, the affected carriers – mostly small companies in rural areas – warned that such a move could upend their businesses.
Two weeks ago, the agency finalised rules requiring US carriers to remove Huawei equipment, shortly after it designated the Chinese telecoms giant a national security threat.
Washington is wary that Huawei and ZTE gear might have bugs that would enable the companies to transfer US data and information to Beijing. Both companies have denied the allegations repeatedly.
Ajit Pai, the FCC chairman, praised congressional leaders on Monday for “working together in a bipartisan manner to reach agreement on this consequential legislation that will help protect our national security, close the digital divide, advance tele-health, and promote American leadership in 5G”.
The US$1.9 billion Congress approved “will strengthen both network security and our national security”, Pai said.
The relief package now heads to US President Donald Trump, who is expected to sign it into law in the coming days.
