The Federal Communications Commission has raised about $3.5 billion from an auction of mid-band wireless spectrum, with most of the proceeds earmarked to fund the removal of Chinese-made telecom equipment from US networks.
The agency’s long-running “rip and replace” programme, which reimburses smaller carriers for swapping out gear from Huawei and ZTE, has spent years short of the money Congress promised it, and the auction was the mechanism chosen to close the gap.
Up to $3.3 billion of the proceeds will go towards repaying a Treasury loan that has been keeping the rip-and-replace effort alive.
The programme was established by a 2021 law with $1.9 billion in funding, but carriers submitted reimbursement requests closer to $5 billion, leaving a shortfall the FCC estimated at roughly $3 billion.
The 💜 of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!Rather than wait for a fresh appropriation, Congress authorised the agency to auction spectrum and direct the receipts back to the carriers doing the removal.
