US plans $1.9bn scheme to replace Chinese telecoms network gear

Lawmakers are also considering $3.2bn plan to fund broadband rollout to low-income homes

US lawmakers are considering a $1.9bn funding package to replace telecoms network equipment from China's Huawei and ZTE Corp, which the Federal Communications Commission has deemed a security threat. ReutersShow less

US lawmakers are expected to endorse $1.9 billion in funding for a programme to remove telecom network equipment that the US government says pose national security risks as part of a year-end spending bill and Covid-19 bill, a source said on Sunday.

Lawmakers are also expected to back $3.2bn for an emergency broadband benefit for low-income Americans.

The Federal Communications Commission said in June it had formally designated China’s Huawei Technologies and ZTE Corporation as threats, a declaration that bars US firms from tapping an $8.3bn government fund to purchase equipment from the companies. Earlier this month, the FCC finalised 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 benefit programme 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 programme will supply a $50 monthly subsidy to qualifying households "to help them afford broadband service and an internet-connected device."

The $7bn Covid Relief Broadband Package also expands eligibility for the rip-and-replace reimbursement programme to communications providers with 10 million subscribers or less but prioritises reimbursement for providers with 2 million subscribers or less.

It also includes about $250 million for additional FCC support for telehealth and $1bn for a tribal broadband connectivity grant programme.