The Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel has urged a rapid launch of a spectrum auction to support the removal and replacement of Chinese telecom equipment. This move addresses national security concerns and follows alarming revelations such as the Salt Typhoon attack, which highlighted vulnerabilities in US telecom networks potentially exploited by Beijing-linked threat groups.
In response to these threats, the “Rip and Replace” initiative was established. Officially called the Secure and Trusted Communications Networks Reimbursement Programme, it originally received $1.9 billion in government funding, though this proved insufficient. Recently, Congress has allowed the FCC to borrow up to $3.08 billion from the US Treasury, facilitated by the newly authorized National Defense Authorization Act (NDAA). This funding is set for repayment through proceeds from the upcoming spectrum auction.
Rosenworcel explained the current situation’s urgency: “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,” highlighting the necessity to act swiftly.
The proposal aims to enable FCC to auction licenses within the Advanced Wireless Service-3 (AWS-3) spectrum bands. Despite some bands being partially unallocated, the auction could be a decisive step in meeting the crucial needs of the Rip and Replace initiative. Furthermore, Rosenworcel has proposed updates to the FCC’s bidding rules to align with small business regulations. This ensures fairness and compliance within the telecommunications industry.
Security experts express concerns over Huawei and ZTE’s hardware, which risk exploitation for espionage. The FCC initiated the Rip and Replace programme to aid US network operators in replacing components from these manufacturers. The upcoming auction seeks to offer additional financial support, given the previous funding shortfall left several providers without adequate resources.
The auction aims to address AWS-3 unlicensed bands, granting small and emerging players access to valuable wireless frequencies. This decision to reallocate the spectrum aligns with national security goals and encourages technological innovation within the telecommunications sector.
