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| Replacing Huawei cell phones could cost billions |
The estimated cost of replacing Huawei and ZTE devices on US networks has increased significantly.
Federal Communications Commission Chair Jessica Rosenworsell told Congress that vendors have asked for $5.6 billion to replace devices the US government believes are unsafe.
The FCC estimated in September 2020 that the replacement could cost $1.8 billion. As of December 2020, Congress has appropriated approximately $1.9 billion for this process.
But Rosenworcel said in a statement that the FCC has received more than 181 requests from airlines that have drawn up plans to remove and replace equipment from their networks that poses a national security threat.
She went on to say she looks forward to working with Congress to ensure that the program is adequately funded to advance Congress' security goals and to ensure the United States remains a leader in 5G security.
The supply chain compensation plan came after intelligence agencies raised concerns about carriers using equipment from Chinese companies such as Huawei to build their 5G networks.
The Federal Communications Commission, led by former Chairman Ajit Pai, has said Huawei and ZTE pose national security risks and has partially banned carriers from buying devices from them.
By this time, some phone companies had already purchased and installed equipment from the manufacturer.
Huawei equipment replacement cost is $5.6 billion
Small carriers claim they can't afford the replacement. The main reason to prefer Chinese devices is the lower cost than other providers.
The plan aims to reimburse telecommunication service providers for reasonable costs incurred. The program is intended to remove, replace and dispose of Huawei and ZTE telecommunications equipment and services.
The FCC reported in 2020 that the cost of removal and replacement could exceed $1.8 billion. This came after checking the network with Chinese devices. It is estimated that $1.6 billion could be eligible for compensation.
Although the total number of launcher applications has tripled, the three-month application window that closed at the end of January. But the final cost is unlikely to reach $5.6 billion.
Congress has not allocated the money yet. The FCC also reviews claims, so the total may be reduced.