US Carriers Under Extreme Pressure for Replacing Chinese Equipment: FCC Report

US Telecom Carriers

The small US carriers have to pay as much as $1.8 billion, for Removing Chinese equipment, according to a new FCC (Federal Communications Commission) report.

The FCC report estimates that as much as $1.6 billion of the cost would be eligible for federal reimbursement but Congress has yet to appropriate the necessary funds.

It’s been understood that the use of Huawei and ZTE equipment in US networks will a significant national security concern for the country but many small carriers are still struggling with the cost of replacing it.
The Eastern Oregon Telecom told that replacing the $500,000 of Huawei equipment was likely to cost as much as $1.5 million that is a too high cost for the small carrier to shoulder on its own.

The Federal Communications Commission report looks specifically at US carriers who receive support from the Universal Service Fund, meant to subsidize the coverage of underserved areas. It does not cover all carriers in the US using Huawei or ZTE equipment, and there may also be eligible carriers who have yet to report their equipment. Hence, the total cost of replacing Chinese equipment is likely even higher than the reported $1.8 billion.

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