Spectrum auction urged to remove Chinese telecoms equipment

Outgoing FCC Chairwoman Jessica Rosenworcel is calling for a quick spectrum auction to finance the removal and replacement of Chinese telecoms equipment.

The issue has been thrust back into the spotlight following the Salt Typhoon revelations that found Beijing-linked threat groups had compromised US telecoms networks. While it’s not been made public what specific hardware was compromised, the removal of Chinese telecoms equipment is seen as vital to secure US communication networks against hostile foreign threats.

The effort stems from the “Rip and Replace” programme, formally known as the Secure and Trusted Communications Networks Reimbursement Programme. Originally backed by $1.9 billion in government funding, the initiative fell short of the amount required due to overwhelming demand.

Congress has now authorised additional funding through the recently approved National Defense Authorization Act (NDAA), allowing the FCC to borrow up to $3.08 billion from the US Treasury. This loan is set to be repaid through the proceeds of the newly proposed spectrum auction.  

“With ‘Salt Typhoon’ and other recent incidents, we are all acutely aware of the risk posed by Chinese hackers and intelligence services to our privacy, economy, and security,” Chairwoman Rosenworcel said, highlighting the urgency and significance of the proposal.

“Today’s proposal is a critical step toward finally filling the shortfall in the Rip and Replace Programme. I am confident that the FCC’s world-leading and award-winning auction team will meet this important moment.”

A spectrum auction for national security  

Huawei and ZTE, both Chinese firms, have long been flagged as national security risks by the US. Their hardware has been deemed vulnerable to exploitation by malicious state actors for intelligence gathering and cyberespionage purposes. Consequently, the Rip and Replace programme was established to assist American network operators in removing, replacing, and disposing of equipment from these manufacturers.  

To generate the necessary funding, the FCC will auction unallocated licences within the Advanced Wireless Service-3 (AWS-3) spectrum bands. These bands – which include the 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz frequencies – remain partially unlicensed due to various circumstances. The AWS-3 spectrum auction represents the FCC’s first since its general auction authority expired in March 2023. 

The Notice of Proposed Rulemaking circulated by Rosenworcel suggests updates to the FCC’s competitive bidding rules to grant these licences. If approved, the auction would conform to updated small business definitions under the Small Business Act’s five-year lookback period, ensuring that bidding remains consistent with regulatory standards. These adjustments are designed to ensure fairness and compliance within the fast-evolving telecoms sector.

Crucial to bolstering network security  

The Rip and Replace programme is vital to safeguarding critical communications infrastructure from undue foreign influence. While the US government initially provided $1.9 billion in 2021, that sum proved insufficient to reimburse all eligible providers grappling with costly replacements.  

This shortfall jeopardised the full removal of insecure Huawei and ZTE equipment, leaving gaps in the intended protective measures for national networks. Now, with Congress’s support through December’s NDAA – a law which grants the FCC authority to finance the outstanding requirements via the AWS-3 auction – the programme has been reinvigorated.  

The Chairwoman has been a vocal advocate for ensuring adequate funding, previously sending no fewer than nine letters to Congress urging resolution to the critical financial gap.  

Rosenworcel has also reiterated her call for Congress to restore the FCC’s full spectrum auction authority, which lapsed in early 2023. She remains steadfast in her belief that spectrum auctions have been key to the FCC’s ability to facilitate technological advances, drive economic growth, and strengthen national security.  

“For more than thirty years, the FCC’s authority to auction the nation’s airwaves proved to be an indispensable tool for harnessing the promise of new wireless technologies while also spurring economic growth, creating jobs, and strengthening our national security and international leadership,” Rosenworcel has previously stated.  

A sensitive technological and political tipping point  

The urgency of protecting US networks is underscored by alarming events such as Salt Typhoon. These threats serve as stark reminders of the need to eliminate insecure foreign-made equipment from domestic networks.  

Huawei and ZTE’s ties to the Chinese government have long raised concerns among US officials and allies. As the US seeks to harden its communications infrastructure and encourage innovation in services like 5G, this new auction not only promises to fund Rip and Replace but also provides an opportunity for emerging players and smaller firms to gain access to valuable wireless frequencies.  

Through reallocating unassigned AWS-3 spectrum bands for auction, the FCC aims to maximise their utility while also addressing a pressing national security issue.  

Though today’s announcement lays the groundwork for the new auction, challenges remain. The competitive bidding process mandated for the AWS-3 spectrum auction must navigate both regulatory adjustments and practical economic constraints.

There is also a delicate balancing act in ensuring that small network operators, particularly those in underserved areas, can secure reimbursement under Rip and Replace while also fostering competition in the telecoms landscape.  

Continued bipartisan support will be essential for the programme’s success, particularly as the FCC navigates lingering scepticism surrounding its borrowing authority and the long-term stability of spectrum auction revenue.

However, Rosenworcel remains optimistic about the agency and its capacity to advance this critical mission. Her belief in the FCC’s auction team reflects confidence in their ability to ensure the US meets ever-pressing technological and security challenges head-on.

Chairwoman Rosenworcel has now proposed the Notice of Proposed Rulemaking to her FCC colleagues, starting a vital rulemaking process as the agency prepares for its first spectrum auction in over a year. 

With renewed Congressional backing and regulatory updates, the auction could jumpstart the next phase of the Rip and Replace programme while reaffirming the FCC’s indispensable role in the advancement and security of vital telecoms systems. 

(Image Credit: FCC)

See also: China launches first satellites for GuoWang constellation

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Tags: 4g, 5G, auction, china, connectivity, cyber security, cybersecurity, fcc, infosec, LTE, mobile, national security, Networks, salt typhoon, Security, spectrum, telecoms, usa