US plans $1.9bn scheme to displace Chinese telecoms network gear

US lawmakers are anticipated to endorse $1.9 billion in funding for a programme to remove telecom network equipment that the US government says pose national security risks within a year-end spending bill and Covid-19 bill, a source said on Sunday.

Lawmakers are also expected to back $3.2bn for an emergency broadband benefit for low-income Americans.

The Federal Communications Commission said in June it had formally designated China’s Huawei Technologies and ZTE Corporation as threats, a declaration that bars US firms from tapping an $8.3bn government fund to acquire equipment from the firms. Earlier this month, the FCC finalised rules that require carriers with ZTE or Huawei equipment to “rip and replace” that equipment but is awaiting funding from Congress.

The bill "establishes a temporary, emergency broadband benefit programme at the FCC to greatly help low-income Americans, including those economically challenged by the Covid-19 pandemic, get linked or remain connected to broadband," the foundation said.

The foundation also said the programme will give a $50 monthly subsidy to qualifying households "to greatly help them afford broadband service and an internet-connected device."

The $7bn Covid Relief Broadband Package also expands eligibility for the rip-and-replace reimbursement programme to communications providers with 10 million subscribers or less but prioritises reimbursement for providers with 2 million subscribers or less.

In addition, it includes about $250 million for additional FCC support for telehealth and $1bn for a tribal broadband connectivity grant programme.