Rip & Replace” is still facing a $3 billion shortfall and FCC Chairwoman Jessica Rosenworcel reminded Congress again about the consequences facing small, rural telecoms. The point of the program is to secure America’s communications networks by removing, replacing, and disposing of communications equipment and services produced or provided by Huawei Technologies Company or ZTE Corporation.
Congress only appropriated $1.9 billion toward the approximately $4.98 billion in reimbursable costs.
The Chairwoman cites the risks to national security, network reliability, and small businesses should the program funding fall short of achieving its goals. “The successful implementation of the Reimbursement Program is one of the Commission’s top priorities,” wrote Rosenworcel in a letter to lawmakers. “I am writing … to emphasize again the urgent need for full funding of the Reimbursement Program.”
Nearly 40 percent of participants reported they can’t complete the necessary “Rip and Replace” work without additional government funding. Several recipients have told the Commission that the funding shortfall could result in the shutdown of their networks or a need to withdraw from the program. Because program recipients serve many rural and remote areas of the country where they may be the only mobile broadband service provider, a shutdown of all or part of their networks could eliminate the only provider in some regions, she noted.
Given the funding shortfall, the Commission is required to first allocate funding to applicants with two million or fewer customers. These applicants will receive prorated support of only 39.5 percent of reasonable costs. “The inability of program participants to complete the work raises national security concerns by leaving insecure equipment and services in U.S. networks. It could also raise network compatibility issues associated with piecemeal replacement of covered equipment as well as vendors that may shift their work to carriers that are not participating in this program,” Rosenworcel noted.
Since July 2022, the Commission has received over 20,000 reimbursement claims across 122 of the 126 applications approved for funding. The agency has granted 64 extensions to complete their “Rip and Replace” obligations—including 52 based in whole or in part on the funding shortfall.
Competitive Carriers Association President/CEO Tim Donovan added his urgent plea for funding. “The urgency of the Chairwoman’s letter highlights the dire necessity to secure our nation’s communications infrastructure and prevent network failures and service reductions impacting tens of millions of consumers. We urge Congress to seize the opportunity to include full program funding in the Securing Growth and Robust Leadership in American Aviation Act (H.R. 3935).”
By Leslie Stimson, Inside Towers Washington Bureau Chief
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