Huawei, ZTE Ban: US Lawmakers Said to Back $1.9 Billion to Replace Telecom Equipment From Chinese Companies

Huawei, ZTE Ban: US Lawmakers Said to Back $1.9 Billion to Replace Telecom Equipment From Chinese Companies

• By Staff Writer

Huawei, ZTE Ban: US Lawmakers Said to Back $1.9 Billion to Replace Telecom Equipment From Chinese Companies

WASHINGTON: U.S. lawmakers are expected to endorse $1.9 billion to fund a program to remove telecom network equipment that the U.S. government says pose national security risks as part of a year-end spending bill and COVID-19 bill, a source briefed on the matter said Sunday.

Lawmakers will also back $3.2 billion for an emergency broadband benefit for low-income Americans.

The COVID-19 relief bill invests $7 billion to increase access to broadband, House Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer said in a statement, adding the low-income program will "help millions of students, families and unemployed workers afford the broadband they need during the pandemic."

The Federal Communications Commission said in June it had formally designated China’s Huawei Technologies Co and ZTE Corp as threats, a declaration that bars U.S. firms from tapping an $8.3 billion government fund to purchase equipment from the companies. Earlier this month, the FCC finalized rules that require carriers with ZTE or Huawei equipment to “rip and replace” that equipment but is awaiting funding from Congress.

The bill "establishes a temporary, emergency broadband profit program at the FCC to help low-income Americans, including those economically-challenged by the COVID-19 pandemic, get connected or remain connected to broadband," the source said.

The source also said the program will supply a $50 monthly subsidy to qualifying households "to help them afford broadband service and an internet-connected device."

The bill will include $285 million for connecting minority communities and will establish an Office of Minority Broadband Initiatives at the National Telecommunications and Information Administration (NTIA).

There is a separate $300 million NTIA grant program to promote broadband expansion to underserved Americans, especially in rural areas, and $65 Million for better broadband maps.

That fully funds the FCC’s development of new more accurate broadband availability maps to help the agency better target government funding for broadband deployment.

The $7 billion COVID Relief Broadband Package also enlarge eligibility for the rip-and-replace reimbursement program to communications providers with 10 million subscribers or less but prioritizes reimbursement for providers with 2 million subscribers or less, the source said, citing a draft fact sheet.

Note: - As every caution has been taken to provide our readers with most accurate information and honest analysis. Please check the pros and cons of the same before making any decision on the basis of the shared details.