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Three times the appropriation! FCC: It will cost $5.6 billion to replace Huawei and ZTE equipment

The Federal Communications Commission (FCC) reported that operators have applied for a total of $5.6 billion in funding to replace Chinese network equipment, nearly three times the $1.9 billion allocated by the government.

Three times the appropriation! FCC: It will cost $5.6 billion to replace Huawei and ZTE equipment

Operators with fewer than 10 million subscribers who used government subsidies to purchase Huawei or ZTE equipment before June 30, 2020 are eligible to apply for funding to cover the costs associated with removing, replacing, and disposing of equipment.

Three times the appropriation! FCC: It will cost $5.6 billion to replace Huawei and ZTE equipment

The FCC said 181 operators submitted their applications by the Jan. 28 deadline.

FCC President Jessica Rosenworcel pledged to work with the government to ensure the program has the funds it needs to advance so-called "national security" goals.

She added that the agency had not yet completed a thorough review of all 181 applications, but said carriers that submitted the applications "have planned to remove and replace devices in their networks that pose a threat to national security."

Steven Berry, chairman and CHIEF executive of the Association of Competitive Operators (CCA), issued a statement calling on the government to "ensure projects are adequately funded" to ensure operators remain connected as they "transition their networks."

The FCC has published a catalogue of eligible fees and estimated costs for operators to provide guidance on budgeting for "blood exchanges" for LTE and 5G networks based on information from multiple vendors.

Some operators and vendors have disclosed plans to use the FCC program to change the network architecture, which has also been included in the catalog.

Many Open RAN options are included. (C114 Jiang Junmu)

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