The FCC voted Tuesday on final measures required to launch its “Rip & Replace” program, meant to reimburse carriers for the removal, disposal and replacement of untrusted network gear from Chinese companies Huawei and ZTE. The U.S. believes that equipment poses a national security risk.
During the meeting, FCC Acting Chairwoman Jessica Rosenworcel announced the agency is targeting October 29 as the date to begin accepting applications from carriers. “That means carriers can start planning for applications and new networks,” she said.
That’s sooner than the timing requested by manufacturers Ericsson and Nokia, though they, and lobbying organizations representing smaller carriers — such as the Competitive Carriers Association and the Rural Wireless Association — had urged the Commission to have the paperwork finalized as soon as possible, Inside Towers’ Intelligence reported.
In a 4-0 vote, the Commissioners passed a Third Report & Order that harmonizes its program rules with those set by Congress in the nearly $1.9 billion appropriation. The big changes would increase the number of carriers eligible for the program from those with two million or fewer customers, to carriers with 10 million or fewer customers. It still gives priority to smaller carriers, according to agency officials at the meeting.
Now, all communications equipment and services produced or provided by Huawei and ZTE will be covered by Rip & Replace. It establishes June 30, 2020 as the new date by which such gear and services must have been obtained to be eligible for reimbursement. It also clarifies time extension requests to be considered. It lays out funding priorities if the amount needed exceeds what was authorized.
Rosenworcel called Rip & Replace “a daunting task, because we are removing insecure equipment from existing networks after installation.” She characterized the program “as perhaps the most significant federally-funded effort to rebuild and secure communications equipment nationwide. This means we will evaluate network after network, base station after base station and router after router until we have rooted out our equipment that could undermine national security.”
The Commissioners are not glossing over the fact that a lot of work lies ahead. At his Rip & Replace workshop in 2019, Commissioner Geoffrey Starks said a representative from Union Telephone walked them through “the cost of equipment, software, installation and optimization needed to offer mobile service across the challenging terrain of his company’s footprint.” Starks said the rep explained “it was quite an extraordinary expense associated with ‘Rip & Replace’ that they could not bear.”
Last week, Union Telephone outlined to Starks the challenges the company now faces even with the funding. They include short construction seasons limited by severe weather, permitting delays for federal land, and perennial concerns such as getting to base stations located in some of the hardest to reach areas. Increasing costs for concrete and steel and a shortage of qualified workers are on that list too.
Pine Belt Cellular underscored concerns for numerous small carriers. “Many small carriers have been in a holding pattern for quite some time,” Starks said.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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