How the FCC's 'rip and replace' program may help kill some small carriers

The Federal Communications Commission's "rip and replace" program, formalized in June 2021 as the Secure and Trusted Communications Networks Reimbursement Program, is designed to reimburse small carriers so they can tear out network equipment from Chinese vendors like Huawei and ZTE that the US government has deemed insecure. The program's goal is to finance the replacement of that equipment with gear from "trusted" vendors. It has $1.9 billion in funding from Congress, and the FCC is expected to begin accepting reimbursement applications in the coming months. However, there are plenty of concerns that the FCC's reimbursement efforts could do more harm than good. "Small carriers have been between a rock and a hard place," explained Carri Bennet of the Rural Wireless Association (RWA). The trade group represents many of the small wireless network operators that have been caught up in the "rip and replace" drama during the past several years. In fact, RWA estimated in 2018 that 25 percent of its members use equipment from Huawei and ZTE. Bennet explained that many of her group's members have been stuck in limbo for years, unable to move forward because of federal prohibitions on business with their own network vendors. Even with an official rulemaking by the FCC and Congressional funding, the "rip and replace" program isn't expected to dole out significant reimbursements for another year or so. It also won't pay for new terminals like the fixed wireless receivers or cover any network-operating costs. For small carriers, the process could ultimately put their businesses in a tailspin.

[Mike Dano is Editorial Director of 5G & Mobile Strategies at Light Reading.]