The cost of dismantling and replacing Huawei and ZTE cellular equipment by US operators has increased significantly to $5.6 billion!

According to foreign media theverge, the estimated cost of replacing Huawei and ZTE equipment in the US network has increased significantly. From the estimated $1.8 billion in 2020 to $5.6 billion now, an increase of more than 3 times.

On Friday, Federal Communications Commission (FCC) Chair Jessica Rosenworcel told Congress that vendors had filed for $5.6 billion in reimbursement for "removing and replacing" equipment deemed unsafe by the U.S. government.

But Rosenworcel said in a statement Friday that the FCC had received "more than 181 applications from operators who have developed plans to remove and replace them." She went on to say that she "looks forward to working with Congress to ensure that there is enough money for the program to advance Congressional security goals and to ensure that the United States will continue to lead the way in 5G security." ”

The FCC announced security risks for ZTE and Huawei in the summer of 2020.

The supply chain reimbursement program was implemented after intelligence agencies expressed concerns about operators using equipment from Chinese companies such as Huawei to build their 5G networks. The FCC, led by former chairman Ajit Pai, said ZTE and Huawei had "national security risks" that more or less prevented telcos from buying equipment from them. But by then, some carriers had already bought and installed equipment from manufacturers, and smaller telcos claimed they couldn't afford replacement costs.

The plan aims to reimburse ZTE and Huawei for reasonable expenses incurred by advanced communications service providers in removing, replacing, and disposing of communications equipment and services. After investigating networks with Chinese equipment in 2020, the FCC reported that "demolition and replacement" would cost more than $1.8 billion and estimated that about $1.6 billion would be eligible for reimbursement.