‘Rip and Replace’: The Tech Cold War Is Upending Wireless Carriers

As the US and China battle for geopolitical and technological primacy, the fallout has reached small wireless carriers in dozens of states. They are on the receiving end of the Biden administration’s sweeping policies to suppress China’s rise. What the wireless carriers must do, under a program known as “rip and replace,” has become the starkest physical manifestation of the tech Cold War between the two superpowers. The program, which took effect in 2020, mandates that American companies tear out telecommunications equipment made by the Chinese companies Huawei and ZTE. US officials have warned that gear from those companies could be used by Beijing for espionage and to steal commercial secrets. Instead, US carriers have to use equipment from non-Chinese companies. The Federal Communications Commission, which oversees the program, would then reimburse the carriers from a pot of $1.9 billion intended to cover their costs. But cleansing US networks of Chinese tech has not been easy. The costs have already ballooned above $5 billion, according to the FCC., more than double what Congress appropriated for reimbursements. Many carriers also face long supply chain delays for new equipment. The program’s burden has fallen disproportionately on smaller carriers, which relied more on the cheaper gear from the Chinese firms than large companies like AT&T and Verizon. Given rip-and-replace’s difficulties, some smaller wireless companies now say they may not be able to upgrade their networks and continue serving their communities, where they are often the only internet providers.