FCC Should Seek Funding for Carriers Removing Chinese Gear, Say USTelecom, NTCA
NTCA and USTelecom seek reimbursement for carriers that must replace Huawei and ZTE equipment, in comments on an NTIA letter. The FCC designated the two businesses as the first covered companies in last year’s supply chain order (see 1911220033), while…
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Congress addressed the issue in the Secure Networks Act, enacted in March (see 2003120061). “Eligible telecommunications carriers risk being unable to upgrade or even maintain covered equipment if replacement funding is not in place prior to the Commission issuing a final designation that prohibits the use of USF support to procure or otherwise support equipment provided by a covered entity,” NTCA said. The FCC should promptly seek funding from Congress, USTelecom asked: “While carriers replacing wireless equipment should be able to upgrade to 5G, the carrier should be responsible for paying the delta between the cost of replacing the equipment and the cost of the upgrade so as not to disadvantage those who made the more costly decisions to enhance national security by avoiding Huawei at the outset.” Huawei said under the networks act, the FCC “is required to designate certain ‘communications equipment and services,’ not companies, to be covered by the law.” The act “confirms” the commission lacked “authority to promulgate the prohibition … and certainly lacks authority to make designations under the rule now,” Huawei said. Comments were posted Monday in docket 19-351.