Huawei, ZTE Ban: US Lawmakers Said to Back $1.9 Billion to Replace Telecom Equipment From Chinese Companies

The US Federal Communications Commission said in June it had formally designated China’s Huawei and ZTE as threats.

By Reuters | Updated: 21 December 2020 10:22 IST

Huawei, ZTE Ban: US Lawmakers Said to Back $1.9 Billion to Replace Telecom Equipment From Chinese Companies

US lawmakers will back $3.2 billion (roughly Rs. 23,600 crores) for an emergency broadband benefit

Highlights

FCC said in June it had formally designated Huawei and ZTE as threats
Huawei said earlier this month it was disappointed in the FCC’s decision
Bill expands eligibility for the rip-and-replace reimbursement programme

US lawmakers will back $1.9 billion (roughly Rs. 14,000 crores) to fund a programme to remove telecom network equipment that the US government says poses national security risks as part of a COVID-19 relief bill, two sources briefed on the matter said on Sunday.

Lawmakers will also back $3.2 billion (roughly Rs. 23,600 crores) for an emergency broadband benefit for low-income Americans, senior congressional aides confirmed after Reuters first reported the planned broadband spending.

The COVID-19 relief bill invests $7 billion (roughly Rs. 51,600 crores) to increase access to broadband, House Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer said in a statement, adding the low-income programme will "help millions of students, families and unemployed workers afford the broadband they need during the pandemic."

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The Federal Communications Commission said in June it had formally designated China's Huawei and ZTE as threats, a declaration that bars US firms from tapping an $8.3 billion (roughly Rs. 61,200 crores) government fund to purchase equipment from the companies.

Earlier this month, the FCC finalised rules that require carriers with ZTE or Huawei equipment to "rip and replace" that equipment but is awaiting funding from Congress.

Huawei said earlier this month it was disappointed in the FCC's decision "to force removal of our products from telecommunications networks. This overreach puts US citizens at risk in the largely underserved rural areas, during a pandemic, when reliable communication is essential."

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The bill "establishes a temporary, emergency broadband benefit program at the FCC to help low-income Americans, including those economically challenged by the COVID-19 pandemic, get connected or remain connected to broadband," according to a fact sheet seen by Reuters.

The source also said the program will supply a $50 (roughly Rs. 3,600) monthly subsidy to qualifying households "to help them afford broadband service and an Internet-connected device."

The bill also expands eligibility for the rip-and-replace reimbursement program to communications providers with 10 million subscribers or less but prioritises reimbursement for providers with 2 million subscribers or less, the source said, citing a draft fact sheet.

The bill will include $285 million (roughly Rs. 2,100 crores) for connecting minority communities and will establish an Office of Minority Broadband Initiatives at the National Telecommunications and Information Administration (NTIA).

It will also offer funding to "support minority-serving education institutions, including when they partner with minority-owned businesses, to expand broadband capacity and use at the school and in the surrounding community," the fact sheet seen by Reuters said.

It also includes about $250 million (roughly Rs. 1,800 crores) for additional FCC support for telehealth and $1 billion (roughly Rs. 7,400 crores) for a NTIA tribal broadband connectivity grant programme.

There is a separate $300 million (roughly Rs. 2,200 crores) NTIA grant programme to promote broadband expansion to underserved Americans, especially in rural areas, and $65 Million (roughly Rs. 500 crores) for better broadband maps.

That fully funds the FCC's development of new more accurate broadband availability maps to help the agency better target government funding for broadband deployment.

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