The US spent nearly 6 billion USD to wipe out Huawei and ZTE equipment

The cost of dismantling and replacing Huawei and ZTE equipment in the US telecommunications network has increased many times compared to the estimate at the end of 2020.

Logos of Huawei and ZTE companies. Photo: Reuters

Federal Communications Commission (FCC) Chair Jessica Rosenworcel told Congress yesterday that service providers have asked for $5.6 billion in compensation to "dismantle and replace" approved equipment. Government rated as unsafe.

This number skyrockets compared to the FCC's estimate in September 2020, when the agency estimated the US would lose about $ 1.8 billion. The US Congress then approved a $1.9 billion budget to compensate service providers.

However, Chairman Rosenworcel said the FCC has received more than 181 applications from carriers. "I look forward to working with Congress to ensure that there is sufficient funding for the project, to advance our security goals, and to ensure that the United States remains at the forefront of 5G security," she said.

The SCRP Supply Chain Compensation Program was launched after US intelligence agencies expressed concern about the risk of Chinese equipment in the country's 5G network. The FCC considers ZTE and Huawei a national security threat and bans telecommunications carriers from buying their products.

However, many carriers at that time ordered and installed ZTE and Huawei equipment, while the small firms insisted that they could not bear the replacement cost, especially when the advantage of Chinese equipment was the low price. SCRP aims to "compensate the removal, replacement and write-off of equipment from ZTE and Huawei to modern telecommunications service providers".

Statistics released by the FCC do not mean that the US Congress will spend $ 5.6 billion on this program. The FCC chairman said the agency is evaluating applications and it is likely that the overall compensation fee will be lower.

Via The Verge

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