US gives nod to $1.9 bn fund to replace Huawei, ZTE telecom equipment: Report

Earlier this month, the FCC finalized rules that require carriers with ZTE or Huawei equipment to “rip and replace” that equipment but is awaiting funding from Congress.

US lawmakers are expected to endorse $1.9 billion to fund a program to remove telecom network equipment that the US government says pose national security risks as part of a year-end spending bill and COVID-19 bill, a source briefed on the matter said Sunday.

A smartphone with the Huawei and 5G network logo is seen on a PC motherboard. (REUTERS)

The Federal Communications Commission said in June it had formally designated China’s Huawei Technologies Co and ZTE Corp as threats, a declaration that bars US firms from tapping an $8.3 billion government fund to purchase equipment from the companies. Earlier this month, the FCC finalized rules that require carriers with ZTE or Huawei equipment to “rip and replace” that equipment but is awaiting funding from Congress.