Security News > 2022 > July > Bill for US telcos to bin Chinese kit blows out by $3 billion

The US Federal Communications Commission notified Congress on Friday that the cost to rip and replace equipment kit from Huawei and ZTE installed at US telcos is more than $3 billion higher than funding allocated for the program.

FCC chair Jessica Rosenworcel wrote to explain the situation, which arose from the USA's desire to remove Chinese comms kit at local carriers in the name of national security.

Carriers were offered cash to replace Chinese kit with American products.

The scheme first allocates funding to remove the kit for applicants with under two million customers.

No entity will be fully reimbursed for ripping out Chinese kit.

The FCC disclosed last month it received 181 applications for access to the funds, totaling $5.6 billion - of which 122 applications showed deficiencies like insufficient cost estimates or support materials to justify cost claims.

News URL

https://go.theregister.com/feed/www.theregister.com/2022/07/18/scrp_shortfall/