CCA, CTIA, NATE, WIA and several other telecom trade associations urged the new Congress to fully fund the Rip & Replace reimbursement program. Congress created the program in 2020, to reimburse telecoms for the removal and disposal of Huawei and ZTE network equipment. The U.S. considers such gear a national security risk because the companies have ties to the Communist Chinese government, and federal government security agencies say the equipment could be used for espionage—a charge the telecoms deny.
But Rip & Replace was expanded, and in July 2020, the FCC identified a $3.08 billion shortfall, Inside Towers reported. “The shortfall means that carriers could only be reimbursed for approximately 40% of their costs, which would preclude them from completing the removal and replacement process, placing their networks in jeopardy of failure and, in some cases, causing them to discontinue service in traditionally underserved areas of the country,” note the associations in a letter to leaders of the House Innovation, Data, and Commerce Subcommittee on Wednesday. They submitted their letter as part of the record for a hearing held yesterday titled: “Economic Danger Zone: How America Competes to Win the Future Versus China.”
The associations commended lawmakers on the hearing topic. They said: “a key element in securing America’s leadership and independence from influence or interference from China remains outstanding – a fully funded Secure and Trusted Communications Networks Reimbursement Program at the FCC.”
The program remains “significantly underfunded” and recent bipartisan Congressional efforts to correct the shortfall in the previous session of Congress “have languished.”
The shortfall “creates significant economic burdens on many smaller rural wireless carriers and allows a national security risk to continue unabated.” Impacted carriers have already begun the “Rip & Replace” process, “and many are now stranded mid-effort.” “Carriers cannot complete the job without full funding. Failure to fully fund the program means that untrusted equipment is still in service today, including some near military bases, airports, and other areas of strategic importance.” They also note that the FCC gave carriers one year to complete the program, a timeline that began in July 2022.
CCA, CTIA, NATE, and WIA were also joined in the effort by the Information Technology Industry Council, NTCA – The Rural Broadband Association, the Rural Wireless Association, the Telecommunications Industry Association and WTA — Advocates for Rural Broadband.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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