The US House of Representatives is set to vote on the 2025 defense budget, which includes a $3-billion allocation to replace telecommunications equipment previously acquired from Huawei and ZTE. The move comes as security risks associated with these companies’ equipment have become increasingly concerning, particularly with China’s massive cyber espionage campaign.
Congress wants an intelligence report outlining Chinese espionage efforts and biotech capabilities. The US Federal Communications Commission (FCC) has a $1.9-billion program to reimburse network operators for removing and replacing compromised hardware, but the total cost is estimated at $4.98 billion.
The $3 billion added to the National Defense Authorization Act may help over 100 US carriers replace potentially compromised equipment, covering around 10 million subscribers. However, FCC Chair Jessica Rosenworcel has urged Congress for additional funding of $3.08 billion, citing risks to national security and rural consumers’ connectivity.
Senator Maria Cantwell plans to fund this program through the auction of advanced wireless spectrum AWS-3, which is unlikely to burden taxpayers. Replacing compromised equipment with American-made products from Cisco and other major networking players is also expected to mitigate the threat.
If Congress passes the complete funding or provides more for the FCC, the US telecom industry may break free from the perceived threat posed by Huawei and ZTE communications equipment, ensuring the security of private telecommunications companies and protecting sensitive information.
Source: https://www.tomshardware.com/tech-industry/u-s-house-set-to-vote-on-usd3b-funding-for-the-replacement-of-chinese-telecoms-equipment-but-swapping-out-all-the-huawei-and-zte-equipment-will-cost-more