The president and CEO of the Competitive Carriers Association (CCA) said he’s encouraged by the White House’s request to Congress to fill the $3 billion gap in the FCC’s Secure and Trusted Communications Networks Reimbursement Program, aka “Rip and Replace.”
But it’s critical that the funding gets allocated asap, said CCA President and CEO Tim Donovan.
“We are very encouraged to see the White House formally asking Congress to fully fund the program,” he told Fierce.
The Biden-Harris Administration’s appeal was part of a $55.9 billion request for domestic aid that includes a call for $6 billion to continue the Affordable Connectivity Program (ACP), which is due to run out in April 2024 without additional funding.
The White House’s move came on Wednesday, the same day Republicans elected Rep. Mike Johnson as House speaker, enabling that body of government to get back to business.
Of course, when legislation actually clears both the House and Senate is anyone’s guess. The Senate Appropriations Committee has a hearing scheduled on Tuesday to review the administration’s national security supplemental request.
Donovan said he’s hopeful something will pass this year.
“We’re going to continue our outreach with the administration and Congress to continue to press the case on just how urgent and important it is that this funding be made available,” he said. “It’s a national security issue, and we’re on the clock.”
Congress in 2020 required broadband providers to replace equipment from Chinese companies, namely Huawei and ZTE, over national security concerns. At that time, $1.9 billion was allocated to reimburse companies for the cost of removing and replacing gear, but that was far short.
The deadline for companies to request reimbursement for rip & replace passed on July 15, and the FCC has been granting one-year extensions. FCC Chairwoman Jessica Rosenworcel recently told lawmakers that the FCC received 122 reimbursement claim requests and approved distributions for 112 of them.
About a dozen CCA members have what’s been deemed insecure equipment in their networks, and for them, it is the most important issue, threatening their ability to stay in business. As more time passes, it makes it more likely more companies will go out of business, Donovan said.
“It’s really hard to make a viable business case when you’ve had the extensive delay on top of competitors continuing to advance,” he said. On top of that, they face the uncertainty of the funding shortfall, making it difficult for these operators to keep going.