Industry backs Rosenworcel’s call for more Replace Cash funding

• The CCA supports Rosenworcel’s call for more funding to complete the Rip and Replace Cash program, citing security risks and rural connectivity issues.
• The program faces a $3.08 billion shortfall, with many carriers unable to remove Chinese-made equipment without additional funding.

What happened: Rosenworcel calls for more funding to fix Rip and Replace Cash program

US telecoms industry representatives, particularly those from smaller carriers, have strongly backed FCC Chair Jessica Rosenworcel’s renewed call for additional funding for the Rip and Replace Cash program. This initiative, designed to remove Chinese-made network equipment, including that from Huawei and ZTE, has faced a significant shortfall in funds. Rosenworcel sent a letter to Congress on November 26, stressing that the program requires an additional $3.08 billion to cover the cost of replacing insecure equipment in the networks of 126 carriers. While the government allocated $1.9 billion to the program, it has approved applications from telcos needing a total of $4.98 billion.

The Competitive Carriers Association (CCA) has raised alarms over the lack of funding, stating that rural and remote areas are particularly affected, with some operators forced to shut down portions of their networks, leaving communities without vital services, including emergency response capabilities. The CCA also emphasized the risks to national security posed by continuing to operate insecure foreign-made equipment.

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Why it’s important

The funding shortfall for the Rip and Replace program poses significant risks to US national security and the reliability of communications networks, especially in rural areas where smaller telcos often serve as the sole provider. Without sufficient funding, many carriers are at risk of having to shut down parts of their networks, depriving these communities of essential services and undermining the integrity of the nation’s telecommunications infrastructure.

Rosenworcel’s call highlights the urgent need for Congress to prioritize this funding, as the program’s success is essential for safeguarding US telecom networks from potential security threats posed by Chinese manufacturers. With only 30 out of 126 carriers having completed the necessary equipment removal, the ongoing delays and financial shortfalls threaten to hinder the program’s effectiveness and delay the broader goal of securing US communications infrastructure. The outcome of this request will have far-reaching implications, not only for the telecom industry but also for national security and public safety.