In the US, operators have been banned from using Huawei and ZTE equipment since the end of 2019. Those who still did so could not count on subsidies. That costs the telecom sector money.
Small operators especially affected
This mainly affects small operators active in remote areas. The US has a handful of very large players: AT&T, Verizon and T-Mobile, with a few medium-sized players such as Dish or USCellular, but among them there are a lot of local operators that are mainly active in regions where the big players have little interest. .
To make that transition as quick and painless as possible, the American Congress has provided $1.9 billion, but the telecom regulator FCC points out that this is far too little. Nearly $5 billion would be needed. In a letter to the representatives, she points out that the applications (approved by the FCC) currently total $4.98 billion.
126 smaller players
The FCC recommends that the money should initially go to 126 smaller players with fewer than two million players. But they will also see less than forty percent of their actual costs reimbursed. The regulator warns that many cannot meet legal obligations. While these players are already dependent on subsidies to offer their services.
In collaboration with Data News
Tags: Dutch Channel government Chinese telecom hardware refuses support
