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Home Market dynamics

It will cost at least $18 billion for US telecom operators to completely replace Chinese-made Netcom equipment.

Author: Mash Yang
December 2020, 09 - Updated on December 05, 2020
in Market dynamics, network
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According to estimates by the U.S. Federal Communications Commission (FCC), if U.S. telecom operators want to completely replace their existing Huawei and ZTE Netcom equipment, it will cost at least US$18 billion (approximately NT$540 billion).

It will cost at least $18 billion for US telecom operators to completely replace Chinese-made Netcom equipment.

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Even though the US government recently announced that it would allocate approximately US$16 billion in subsidies, since the US Congress has not yet passed this proposal, it will inevitably bring a significant burden to telecom operators, especially small local telecom operators, who are more likely to face subsequent operating pressures because they cannot afford to replace their existing network communication equipment.

The US government has already determined that Huawei and ZTE provide network equipment.Will cause national security risksTherefore, it requires domestic telecom operators in the United States not to use subsidy funds to purchase such network communication equipment, and even calls on domestic telecom operators to replace the Huawei and ZTE network communication equipment currently in use as soon as possible.

However, small telecom operators that provide local services usually purchase relatively cheap Huawei and ZTE network communication equipment for operating cost considerations. There are currently at least 50 small telecom operators in the United States that are in this situation. As the U.S. Congress has not yet agreed to the U.S. government to provide subsidies, it is much more difficult for telecom operators in the United States to replace such network communication equipment.

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Tags: FCCHuaweiZTESino-US trade warFederal Communications Commission
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Mash Yang

Mash Yang

Founder and editor of mashdigi.com, and student of technology journalism.

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