The cost of excluding Huawei and ZTE from network equipment in the United States exceeds 600 billion yen, exploding from the initial estimate of 190 billion yen

by Kārlis Dambrāns

In the United States, the ' Secure Equipment Act ' was passed in October 2021, and it was decided to exclude the products of major Chinese communication equipment manufacturers Huawei and ZTE from the communication network. The Federal Communications Commission (FCC) estimated the cost of eliminating this telecommunications equipment to be $ 1.8 billion (about 190 billion yen at the rate at that time), but a new estimate of exclusion cost is $ 5.6 billion (about 6458). It was announced that it reached 100 million yen).

Rosenworcel Notifies Congress of Demand for Rip and Replace Program | Federal Communications Commission
https://www.fcc.gov/document/rosenworcel-notifies-congress-demand-rip-and-replace-program

In the United States, in 2018, the Secretary of Intelligence such as the FBI, CIA, and NSA and the Secretary of State for the United States of America named Huawei and ZTE and warned that 'American citizens should not use products and services made by Huawei and ZTE.' In June 2020, the FCC has tightened regulations on Huawei and ZTE, such as designating Huawei and ZTE as 'national security threats.'

Huawei and ZTE are finally designated as 'National Security Threats'-GIGAZINE

by Kārlis Dambrāns

As part of this tightening of regulations, the FCC passed the ' Safe and Reliable Communication Network Law ' in 2020, which prohibits the purchase of 'communication equipment with unacceptable risks for national safety' with government funds. Furthermore, in 2021, the 'Act on Safe Equipment' was passed, which prohibits the acquisition of permission to use 'equipment considered to threaten the security of national communications', and the distribution of Huawei and ZTE products in the United States is not possible. It is now possible. The FCC also estimated that it would cost $ 1.8 billion to remove Huawei and ZTE communications equipment from the network, and it wasreported that this cost would be contributed by the government.

'Safe Equipment Law' to completely eliminate Huawei and ZTE equipment from communication infrastructure is passed --GIGAZINE

However, on February 4, 2022, FCC Chairman Jessica Rosenwessel revealed that she had received more than 181 exclusion plan applications from carriers in the United States, with estimates of Huawei and ZTE exclusion costs. Reported that it reached $ 5.6 billion. 'There's a lot to do to scrutinize these applications,' Rosen Warsell said, leaving the final estimate below $ 5.6 billion.

The United States is not the only country working to eliminate Huawei and ZTE. For example, in July 2020, the British government announced a policy to completely eliminate Huawei products from the 5G network by 2027.

The UK Government officially announces 'policy to completely eliminate Huawei products from 5G communication network by 2027' --GIGAZINE