Corinne Reichert / CNET
The Federal Communications Commission said Friday that removal and replacement could cost an estimated $ 1.8 billion Huawei and ZTE devices on US telecommunications networks that receive federal funding.
In June the FCC officially opened classified Huawei and ZTE as national security threatsHowever, as of 2019, the agency has stopped airlines from using their $ 8.3 billion-a-year Universal Service Fund to buy equipment from the two Chinese tech giants.
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US President Donald Trump also signed a bill in March preventing airlines from using government funds to buy network equipment from Huawei and ZTE.
"By detecting the presence of insecure devices and services on our networks, we can now ensure that these networks - especially those of small and rural airlines - rely on the infrastructure of trusted providers," said Ajit Pa, chairman of the FCC, in a Press release, adding that he would "again urge Congress" to allocate adequate funds to reimburse transportation services.
Earlier this year, the FCC began collecting data from U.S. carriers using Huawei and ZTE network equipment to compensate smaller and rural carriers for these costs.
The USA, United Kingdom and Australia have banned Huawei from deploying it 5G technology for their respective wireless networks because of security concerns that Huawei has close ties with the Chinese government. Huawei has repeatedly denied these charges. India is also expected Lock Huawei and ZTE from the 5G rollout.
Security concerns
The main problem with Huawei is its cozy relationship with the Chinese government. National security officials fear their equipment could be used to spy on other countries and companies.
One problem is the Chinese law, according to which companies in its jurisdiction have to comply with inquiries from intelligence services and not pass them on to third parties, which could endanger communication networks around the world.
Huawei has long denied that its equipment can be used to spy on or compromise US security.
Capitol Hill lawmakers, both Republicans and Democrats, have also sounded the alarm about these Huawei and ZTE and have worked to blacklist them from US communications networks.
Earlier this year, Congress passed and Trump signed the Safe and Trustworthy Communications Act. This legislation prohibits the use of federal funds to purchase equipment from companies that pose a national security threat, such as Huawei or ZTE. The law also creates a fund to help telecom operators, most of whom are located in rural areas, rip out equipment from these Chinese companies and replace them with equipment from "trusted providers."
Frank Pallone Jr., a Democrat from New Jersey who chairs the House Committee on Energy and Trade, said Friday it was now up to Congress to keep its promise to fund the replacement of this equipment in communications networks.
"The FCC's estimate of the cost of replacing suspicious devices on US networks shows how common suspicious devices are being replaced - especially with smaller airlines that cannot afford to replace them themselves," he said in a statement. "For this reason, it is important that Congress fund the Secure and Trusted Communications Networks Act's Rip and Replace program to secure our communications supply chain."
Secure networks and 5G
The use of 5G, the next generation of radio technology that is being introduced worldwide, is particularly high. This new technology promises much faster wireless service and a more responsive network. The ability to plug in more devices and provide real-time feedback is expected to spark a profound change in the way we live and work, ushering in new advances such as self-driving cars and enhanced augmented reality experiences.
Carriers around the world strive to provide networks. In the US, AT&T, Verizon and T-Mobile are well on their way to roll out 5G.
The country that is leading the way in adopting 5G could gain a head start in adopting these future technologies. And just as the US has benefited from the multitude of services and companies that have emerged from 4G - think everything from live streaming on Facebook to ridesharing like Uber - many believe that 5G will spark a similar renaissance of new companies.
Huawei is a dominant provider in the 5G market, which again increases stakes in 5G. National security experts say Huawei equipment could be used for espionage or to shut down critical communications networks during a future conflict.
"As we begin this 5G development and deployment phase, we are making sure that the devices that make their way into these networks and the standards that are being developed do not pose undue risk," Pai told WSJ in an interview last October Tech Live Conference.
Huawei equipment in the US
None of the major US telecom operators, including AT&T, Verizon or T-Mobile, which now include Sprint's assets, claim to have used Huawei or ZTE 5G devices in the US. The FCC has not released which airlines in the US have used Huawei or ZTE devices. However, the top three cellular operators in the US - AT&T, Verizon, and T-Mobile - each have stated that they don't have these devices on their 4G LTE networks either.
"Let me be clear - we don't use Huawei or ZTE network devices in any area of our network. Period. And we will never use them on our 5G network," said John Legere, former CEO of T-Mobile in written testimony in February 2019 before a communications subcommittee of the House on the company's merger with Sprint.
The airlines in the US that have used Huawei equipment are generally smaller rural operators. These operators have previously taken advantage of funding options that have made Chinese devices more affordable than alternatives from companies like Ericsson and Nokia, both based in Europe.
Steven Berry, President and CEO of the Competitive Carriers Association, an industry group representing rural airlines, told Congress how difficult it is to carry out such a large-scale project to replace Huawei and ZTE devices. March, he told the Senate Commerce Committee Tearing out and replacing equipment in rural networks would be like "trying to rebuild the plane in mid-flight".
He said the biggest difficulty smaller airlines face is making sure they are still able to maintain service.
"While those inside the bypass often refer to the process as' ripping and replacing '," Berry said in his testimony, "in practice, carriers typically need to' replace and then ripping" to ensure that consumers served by rural freight forwarders don't to do." Lose service. "
On Friday after the FCC released its report, he issued a statement saying that his organization "strongly supports efforts to protect and secure our nation's communications networks."
But he added that Congress needs to make sure it funds the project to replace the equipment.
"Today's release further underscores the need for Congress to fully fund the reimbursement program for secure and trusted communications networks to ensure that airlines, especially those serving rural areas, have the necessary resources to remove covered devices and services and at the same time keeping the Americans connected, "he said.
