Outgoing FCC Chair Jessica Rosenworcel is urging swift action on the spectrum auction process to expedite the removal of Chinese-made telecom equipment from U.S. networks. The push comes as part of ongoing efforts to secure U.S. telecom infrastructure and address the shortfall in funding for the rip-and-replace program.
Accelerating the Rip-and-Replace Program
Rosenworcel’s statement emphasized the need for immediate action to adopt rules that would enable a spectrum auction to fund the removal and replacement of Huawei and ZTE equipment from U.S. telecoms networks. This action comes in response to a critical funding gap that has arisen, exacerbated by the recent Salt Typhoon cyberattack, which has highlighted vulnerabilities in U.S. telecom infrastructure.
The FCC’s proposed spectrum auction aims to raise funds to cover the shortfall in the rip-and-replace program, which was originally allocated $1.9 billion but faced applications totaling nearly $5 billion. This auction is seen as a necessary step to protect U.S. communications networks from security risks linked to Chinese-made equipment and to ensure privacy and economic stability.
The Impact of the Salt Typhoon Cyberattack
The Salt Typhoon campaign, attributed to Chinese hackers, targeted U.S. telecom networks to steal sensitive data. This incident has intensified concerns over the security implications of using Chinese-made telecom equipment, making the FCC’s efforts even more critical. According to Rosenworcel, “With ‘Salt Typhoon’ and other recent incidents, we are all acutely aware of the risk posed by Chinese hackers and intelligence services to our privacy, economy, and security.”
The urgency of the situation underscores the importance of completing the rip-and-replace program quickly. As Rosenworcel prepares to depart the FCC later this month, she has expressed confidence in the Commission’s ability to move forward with the spectrum auction and ensure the continued safety of U.S. telecom networks.
Spectrum Auction Set to Raise $3 Billion
The FCC has been authorized to auction off AWS-3 spectrum licenses to help fill the $3 billion shortfall in funding for the rip-and-replace program. AWS-3 licenses, previously offered in Auction 97, will now be re-auctioned to raise the necessary funds for replacing banned equipment.
The auction is expected to take place soon, as the FCC moves to address unassigned spectrum licenses within the AWS-3 band. This effort follows a previous attempt to allocate funding through the National Defense Authorization Act (NDAA), which included an additional $3 billion for the program.
Progress of the Rip-and-Replace Program
Since July 2022, over 20,000 reimbursement claims have been filed by U.S. telecom companies, with 122 of the 126 approved applications for funding already processed. However, as of January 2025, only five companies have completed the removal of Chinese telecom equipment from their networks, underscoring the challenges involved in executing the program on time.
The shortfall in funding has significantly delayed progress, but the FCC’s auction of the AWS-3 spectrum could provide the financial boost necessary to accelerate the process and meet the program’s objectives.
What’s Next for the FCC?
With Commissioner Brendan Carr set to take over as the next FCC chair, the incoming leadership will inherit the ongoing efforts to secure U.S. telecom infrastructure. Carr, appointed by President-elect Donald Trump, is expected to continue pushing for measures that strengthen U.S. cybersecurity and ensure the successful implementation of the rip-and-replace initiative.
FAQ Section
What is the rip-and-replace program?
The rip-and-replace program is an initiative aimed at removing and replacing Chinese-made telecom equipment, such as those from Huawei and ZTE, due to security concerns. The goal is to safeguard U.S. telecom infrastructure from potential espionage and cyberattacks.
Why is the FCC auctioning AWS-3 spectrum licenses?
The FCC is auctioning AWS-3 spectrum licenses to raise funds to cover the $3 billion shortfall in the rip-and-replace program, which is designed to remove insecure Chinese-made telecom equipment from U.S. networks.
How much funding does the rip-and-replace program require?
The rip-and-replace program initially required $1.9 billion, but due to high demand, the funding applications totaled nearly $5 billion, creating a shortfall of $3.08 billion. The FCC plans to address this gap through the auction of AWS-3 spectrum licenses.
What impact has the Salt Typhoon cyberattack had on the FCC’s actions?
The Salt Typhoon cyberattack, which targeted U.S. telecom networks with Chinese hackers attempting to steal sensitive data, has heightened concerns about the risks posed by Chinese-made telecom equipment, prompting the FCC to prioritize the rip-and-replace program and seek additional funding through spectrum auctions.
What is the role of FCC Commissioner Brendan Carr in the rip-and-replace program?
Brendan Carr, the incoming FCC Chair, is expected to continue the push for securing U.S. telecom networks from foreign security threats and to oversee the completion of the rip-and-replace program. He will inherit the responsibility of managing the spectrum auction and ensuring the program’s success.
