UPDATE Nine more Rip & Replace reimbursement recipients have completed removal, replacement and disposal of Huawei and ZTE gear from their networks. That’s according to the FCC’s latest report to Congress which says 14 out of a total of 126 applicants have completed the process.
But many telecoms have asked for extensions of the one-year deadline, citing the $3.08 billion shortfall in the program. Nearly 40 percent of recipients have told the Commission they can’t complete the work required under the reimbursement program without full government funding. The FCC has granted 70 extensions to-date.
As of June 1, the agency reported $693,176,545 in reimbursement claim funds have been “fully disbursed to recipients or are in the process of being disbursed” through the U.S. Treasury.
Telecoms continue to report they’re experiencing five main challenges in their efforts to permanently remove, replace, and dispose of covered communications equipment and services in their networks:
(1) absence of full funding;
(2) supply chain delays;
(3) labor shortages;
(4) weather-related challenges; and
(5) extended review times in the processing of requests for reimbursement.
“Reimbursement claim review times correlate to the number of claims submitted and the sufficiency of information included in the claims,” states the FCC in the report. The fund administrator and the Commission continue to see a “significant volume” of reimbursement claims, as the majority of recipients now have defined deadlines to complete the removal, replacement, and disposal work.
“It also continues to be necessary for the fund administrator [Ernst & Young LLP] to ask recipients to provide additional information and detail about their requests for funds to address insufficient submissions,” says the agency. The fund administrator has hired more staff to handle the paperwork increase.
FCC Chairwoman Jessica Rosenworcel has stressed to lawmakers numerous times the critical need for more funding to fill the funding shortfall from the current appropriation of $1.9 billion. The latest status updates were due to the agency on Monday.
By Leslie Stimson, Inside Towers Washington Bureau Chief —
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