UPDATE, December 18: Today, the U.S. Senate passed the National Defense Authorization Act, which includes more than $3 billion in funding for the Federal Communications Commission’s (FCC) rip-and-replace program.
Industry voices were quick to applaud the action. Competitive Carriers Association (CCA) President and CEO Tim Donovan said, “This funding has been desperately needed to meet the national security mandate created by Congress and fulfills Congress’s commitment to small and rural telecommunications carriers and the communities they serve.”
Just over two weeks ago, FCC Chairwoman Jessica Rosenworcel sounded the alarm about the consequences if Congress did not fund the program. (See story below.)
Original Story Follows: December 3, 2024
Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel wrote an open letter to U.S. Representative Steny Hoyer last week urging action to provide more funding for the rip-and-replace program and warning of the dangers if no action is taken.
Rosenworcel — who announced that she will leave the FCC in January when the Trump administration takes power — sounded the alarm for the rip-and-replace program. According to Rosenworcel’s letter, the program, officially known as the Secure and Trusted Communications Networks Reimbursement Program, is billions of dollars short in funding.
“This program to replace insecure equipment in the networks of 126 carriers faces a $3.08 billion shortfall,” wrote Rosenworcel, “putting both our national security and the connectivity of rural consumers who depend on these networks at risk.”
The program intends to help carriers replace existing wireless equipment from “covered” manufacturers. Those manufacturers include Chinese companies such as Huawei and ZTE. According to the federal government, those suppliers’ equipment threatens national security.
“As my earlier correspondence explained,” Rosenworcel wrote, referring to a May 2024 update she provided, “were the Commission to fund all reasonable and supported cost estimates in the approved applications, the Reimbursement Program would require approximately $4.98 billion, reflecting a $3.08 billion shortfall from the current appropriation of $1.9 billion.”
Last May was not the only time the FCC has expressed concerns about the budget for the rip-and-replace program. In July, the FCC cautioned that 40% of wireless providers could not complete their rip-and-replace requirements without more funding. At that time, the commission noted that “notwithstanding this funding shortfall, recipients remain subject to the requirement… that they remove all of the covered communications equipment and services in their networks.”
