US government to spend $3 billion to remove Chinese-made telecommunications equipment

On Monday, December 23, 2024, US President Joe Biden signed the National Defense Authorization Act (NDAA) for fiscal year 2025. The NDAA for fiscal year 2025 includes $3 billion (approximately 470 billion yen) for the 'rip and replace' program to remove and replace Chinese-made telecommunications equipment.

Statement from President Joe Biden on HR 5009, Servicemember Quality of Life Improvement and National Defense Authorization Act for Fiscal Year 2025 | The White House
https://www.whitehouse.gov/briefing-room/statements-releases/2024/12/23/statement-from-president-joe-biden-on-hr-5009-servicemember-quality-of-life-improvement-and-national-defense-authorization-act-for-fiscal-year-2025/

FCC 'rip and replace' provision for Chinese tech tops cyber provisions in defense bill | The Record from Recorded Future News
https://therecord.media/fcc-rip-and-replace-china-tech-tops-ndaa

US House To Vote On $3B For Rip And Replace Telecom Program
https://thecyberexpress.com/us-house-to-vote-on-rip-and-replace-program/

US allocates $3B to 'rip and replace' Chinese technology at smaller telcos - SiliconANGLE
https://siliconangle.com/2024/12/25/us-allocates-3b-rip-replace-chinese-technology-smaller-telcos/

In the United States, the threat of hacker groups believed to be linked to the Chinese government, such as Salt Typhoon and Bolt Typhoon , has become apparent, making it necessary to address the potential risks of Chinese-made telecommunications equipment.

China denies claims by the U.S. government and Microsoft that the Chinese government is behind the hacker group 'Bolt Typhoon,' calling it a 'farce of its own making' - GIGAZINE

Chinese-made telecommunications equipment is widely used throughout the United States, and the cost of removing and replacing telecommunications equipment is a huge burden for small and medium-sized telecommunications providers. Therefore, the Federal Communications Commission (FCC) secured a budget of $1.9 billion (approximately 300 billion yen) in 2019 and implemented a subsidy program called the ' Rip & Replace Program (official name: Secure and Trusted Communications Networks Reimbursement Program) ' from October 2021 to January 2022.

The Removal and Replacement Program provided the cost of removing telecommunications equipment to 'telecommunications providers with 10 million or fewer customers that acquired Huawei or ZTE telecommunications equipment before June 30, 2020.' However, the FCC estimated that $4.98 billion (about 780 billion yen) was needed to remove at-risk telecommunications equipment, and the $1.9 billion approved by Congress was insufficient.

The recently enacted NDAA for fiscal year 2025 includes an additional $3 billion in funding for the rip-and-replace program, which is expected to help advance the removal and replacement of Chinese-made telecommunications equipment remaining in the United States.

The U.S. government is calling on the FCC to use the revenue from the spectrum auction to fund the rip-and-replace program.