Politico | Congress approves US$1 billion to help rural telecoms companies ditch Huawei and ZTE
- Funds will go to firms to rip and replace any gear in their networks from the Chinese telecoms giants
- Dozens of small US carriers use Huawei and ZTE equipment, largely due to its low cost
This story is published in a content partnership with POLITICO. It was originally reported by John Hendel on politico.com on February 27, 2020.
The Senate unanimously voted on Thursday to pay rural telecoms carriers US$1 billion to rip and replace any gear in their networks from Chinese telecommunications giants Huawei and ZTE.
The Senate action sends the legislation to President Donald Trump for his signature. Top administration figures have indicated general support for the funding, which would mark yet another victory in the president's efforts to exclude Huawei from telecoms networks in the US.
The administration has alleged that Huawei is an arm of China’s communist government – something it denies – and would pose a national security threat if allowed to help build the 5G networks of the US or its global allies. The new legislation is aimed at ensuring Huawei's gear also vanishes from existing, slower networks.
The House unanimously passed the Secure and Trusted Communications Networks Act in December following bipartisan consensus on the House Energy and Commerce Committee.
Senate Commerce Chairman Roger Wicker had sought to move the measure by unanimous consent in his chamber soon afterward only to face a block from Senator Mike Lee, who worried over how lawmakers would pay for this funding.
FCC orders US phone companies to report use of Huawei, ZTE equipment
As POLITICO reported earlier this month, Lee dropped his objections, paving the way for Thursday’s sign-off.
Dozens of small US carriers have Huawei and ZTE equipment embedded in their networks. Many bought the equipment years ago, largely due to the gear's low cost.
Huawei has warned that the legislation would probably spell lay-offs among its US operations.
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