FCC Releases Results of Supply Chain Information Collection

The Federal Communications Commission released the results of its efforts to identify use of Huawei and ZTE equipment and services in US telecommunications networks that receive support from the federal Universal Service Fund. The FCC’s Nov 2019 order barring the use of USF support for the purchase of equipment and services from companies that pose a national security threat initially designated Huawei and ZTE as covered entities and directed FCC staff to conduct this information collection. In June 2020, the FCC’s Public Safety and Homeland Security Bureau issued final designations of Huawei and ZTE as posing national security threats to the integrity of communications networks. Sept 4’s announcement includes a list of eligible telecommunications carriers, or their affiliates and subsidiaries, that have reported using at least some Huawei and ZTE equipment or services in their networks.

Based on data FCC staff collected through the information collection, all filers report it could cost an estimated $1.837 billion to remove and replace Huawei and ZTE equipment in their networks. Of that total, filers that appear to initially qualify for reimbursement under the Secure and Trusted Communications Network Act of 2019 report it could require approximately $1.618 billion to remove and replace such equipment. Other providers of advanced communications service may not have participated in the information collection and yet still be eligible for reimbursement under the terms of that Act.