Huawei and ZTE Equipment Removal Will Cost Billions More

WebProNews
Huawei and ZTE Equipment Removal Will Cost Billions More

FCC Chairwoman Jessica Rosenworcel has informed lawmakers that removing equipment from Huawei and ZTE will cost billions more than anticipated.

The United States banned Huawei and ZTE networking and telecoms equipment over national security concerns. Both companies were deemed a threat over their ties to the Chinese government. As a result, telecom operators were tasked with removing equipment made by the two companies from their networks. It appears the cost is significantly higher than anticipated.

According to Reuters, in a letter to Senator Maria Cantwell, head of the Committee on Commerce, Science, and Transportation, Rosenworcel outlined the massive shortfall in the available funding:

“To fund all reasonable and supported cost estimates…, the Reimbursement Program will require $4.98 billion, reflecting a current shortfall of $3.08 billion,” Rosenworcel wrote.

Without further funding, the FCC will allocate the original $1.9 billion according to Congress’ instructions.

“Absent an additional appropriation, the Commission will apply the prioritization scheme Congress specified,” Rosenworcel added.

The latest estimate appears to be slightly less than what the agency expected in February 2022, when it estimated the total cost to be $5.6 billion.

Huawei and ZTE Equipment Removal Will Cost Billions More
Matt Milano

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