U.S. needs $3 billion more to remove Hawaii and SAT from U.S. networks, regulator says

WASHINGTON, July 15 (Reuters) – The U.S. telecoms regulator wants an additional $3 billion to remove equipment from U.S. networks made by Chinese telecom giants Huawei and ZTE. (000063.SZ)The company told Congress on Friday that it brought the total cost to $4.9 billion.

“For funding all fair and reasonable cost estimates…, The

The repayment plan would require $4.98 billion, reflecting a current deficit of $3.08 billion,” Federal Communications Commission Chairman Jessica Rosenworcel said in a letter to Senator Maria Cantwell on Friday.

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He added that because Congress has only appropriated $1.9 billion to fund the removal process, the companies will only be reimbursed for about 40% of the costs.

In 2019, Congress passed legislation directing the FCC that US telecom carriers that receive federal subsidies must pay back their networks of telecommunications equipment that pose a national security risk.

The FCC has named Huawei and ZTE as threats, requiring US companies to remove their equipment or be cut off from $8.3 billion in government funding to buy new equipment. However, Congress has only appropriated $1.9 billion to fund the so-called “rip down and replace” initiative, raising questions about the effectiveness of implementing the repressive agenda.

“In the absence of additional appropriations, the commission will use the priority plan specified by Congress,” Rosenworcel said in the letter, adding that “the appropriations will be made. The commission will begin processing the claims in the next few days.”

Companies are not required to complete work until they are reimbursed.

Reporting by Alexandra Alber; Editing by Cynthia Osterman

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