WASHINGTON, Sept 27 (Reuters) - The U.S. Federal Communications Commission (FCC) on Monday said it would open a $1.9 billion program to reimburse most

U.S. to open program to replace Huawei equipment in U.S networks

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2021-09-27 20:30:05

WASHINGTON, Sept 27 (Reuters) - The U.S. Federal Communications Commission (FCC) on Monday said it would open a $1.9 billion program to reimburse mostly rural U.S. telecom carriers for removing network equipment made by Chinese companies deemed national security threats like Huawei [RIC:RIC:HWT.UL] and ZTE Corp (000063.SZ).

Last year, the FCC designated Huawei and ZTE as national security threats to communications networks - a declaration that barred U.S. firms from tapping an $8.3 billion government fund to purchase equipment from the companies. The FCC in December adopted rules requiring carriers with ZTE or Huawei equipment to "rip and replace" that equipment.

The issue is a big one for rural carriers that face high costs and difficulty finding workers to remove and replace equipment.

The FCC's final order expanded the companies eligible for reimbursement from those with 2 million or fewer customers to those with 10 million or fewer customers.