The Chairwoman of the Federal Communications Commission (FCC), Jessica Rosenworcel, has urged her colleagues to swiftly establish rules for conducting a radio spectrum auction. The proceeds from this auction are intended to fund the completion of the Rip and Replace program, under which U.S. telecom operators are dismantling equipment from Chinese manufacturers Huawei and ZTE.
The program, approved in July 2021, aims to remove equipment produced by Chinese companies deemed a national security threat in the United States, particularly Huawei and ZTE. However, by 2024, only 12% of operators had fully eliminated Chinese devices from their networks. Estimates suggest that an additional $3 billion will be required to complete the initiative.
Rosenworcel has persistently advocated for increased funding, citing ongoing cyberattacks, such as those attributed to Typhoon, during which hackers linked to Chinese authorities infiltrated critical networks. In December 2024, Congress passed the Spectrum and Secure Technology and Innovation Act, allowing the FCC to borrow up to $3.08 billion from the U.S. Treasury to finalize the Rip and Replace program.
To repay this loan, the FCC plans to auction licenses for unused AWS-3 radio frequencies. These bands are highly sought after by mobile operators due to their capacity to deliver high data transfer speeds and broad coverage.
The previous AWS-3 auction, held in 2015, saw major players like AT&T, Verizon, and T-Mobile US collectively pay nearly $45 billion for spectrum rights. The forthcoming auction is expected to cover the loan allocated for replacing Chinese equipment, with the funding essentially coming from private companies rather than the government.
Rosenworcel emphasized that the persistent cyber threats, including the Salt Typhoon attacks, underscore the urgency of eliminating risks posed by Chinese technology. Her proposal includes updating auction rules for the allocation of frequencies in the 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz bands.
Simultaneously, the FCC is developing new cybersecurity requirements, mandating telecom operators to bolster their network defenses. This initiative is driven by active cyberattacks and concerns over the potential ban on TP-Link routers in the United States due to fears of their use in cyber espionage.
Rosenworcel is set to step down as FCC Chair on January 20, coinciding with the inauguration of President-elect Donald Trump. Her successor will be Brendan Carr, a current FCC commissioner.
