Wireless providers struggle to remove Chinese technology from cell towers

Cell towers across the United States have Chinese technology built into them that the U.S. government determined is a national security threat. But a multi-billion dollar funding shortfall is slowing down and even halting some companies from removing and replacing the equipment. 

In 2020, the Federal Communications Commission banned new equipment from two Chinese companies, Huawei and ZTE. Congress appropriated $1.9 billion to help smaller wireless providers take out what had already been installed and replace it. But the job isn’t done yet because they need $3.1 billion more. 

There are still an estimated 24,000 pieces of Chinese-made equipment in 8,300 locations.

“This is just one example of the pervasive threat Chinese-made equipment in our communications networks poses to our national security. We know that the Chinese Communist Party intends to exploit these vulnerabilities for all kinds of activities, including espionage,” Sen. Deb Fischer, R-Neb., said. 

Fischer and her colleague Sen. John Hickenlooper, D-Colo., introduced a bill to transfer leftover COVID money from bills like the CARES Act and Paycheck Protection Program to the FCC’s “Rip and Replace” fund. In September 2022, 30 Republicans and Democrats wrote a letter to Senate leaders saying they need to fully support the projects. 

“A funding shortfall requires the FCC issue a pro-rated reimbursement to eligible telecommunications providers—resulting in only 39.5% of funding for approved costs allocated for reimbursement,” the letter stated.  

The Biden administration is also on board.

“I certainly believe it poses national security risks. Huawei remains in American networks, including near military bases, and I think that Congress should fully fund the FCC’s Rip and Replace program,” Commerce Secretary Gina Raimondo said at a recent hearing. 

The issue hits rural communities with smaller service providers the hardest. Fischer said company executives have told her that if they don’t get the funding they have two options: go out of business or rip out the technology without replacing it, which reduces or eliminates coverage in certain areas. 

“If these carriers go out of business or reduce coverage, that will leave thousands of residents without wireless services — services that are essential for work, emergencies, and life in the 21st century. People traveling through these areas often won’t have service either,” Fischer said.  

Fischer contends the wireless providers are in a tough position after being mandated by the federal government to remove the equipment. But getting this bill approved won’t be easy. Similar bills have failed twice in the last year.