A scheme to have US carriers replace Chinese-made networking equipment with American equipment is nearly three times overloaded.
The Federal Communications Commission (FCC) established the US$1.9 billion (A$2.67 billion) fund in October to assist US carriers with less than 10 million customers in replacing Chinese-made equipment with American equipment from Cisco, Juniper Networks, and Arista.
In addition to the subsidies as a carrot, the FCC has a stick: if carriers do not comply, they will be denied access to the regulator’s universal service fund.
In an update, FCC Chair Jessica Rosenworcel stated that the programme had received 181 applications and that it would require US$5.6 billion to accommodate demand.
Rosenworcel stated that the FCC will consider the proposals, but she intends to seek extra financing.
“I look forward to working with Congress to ensure that appropriate funding is available for this programme to fulfil Congress’ security priorities and guarantee that the United States continues to lead the way in 5G security,” Rosenworcel said.
Huawei and ZTE fought a protracted campaign to prevent nations such as the United States and Australia from prohibiting the use of their equipment for national security reasons.
The Secure Equipment Act was signed into law by US President Joe Biden last year. The measure prohibits US officials from issuing new permits to Chinese-made equipment.
