Providers want money

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Due to their proximity to the government in Beijing, Chinese companies such as Huawei are under increased scrutiny in numerous countries.

(Bild: AFP)

Telecom companies in the US urgently need more money to remove Chinese components from their networks, according to the relevant regulatory authority, the FCC. Almost 40 percent of US companies that have received government aid need further support, FCC chief Jessica Rosenworcel told Congress. Some had warned that they might have to shut down their networks.

The cost of removing the technology from Huawei and ZTE is estimated at just under five billion dollars (4.67 billion euros). As part of the "Rip and Replace" program, only 1.9 billion dollars have been approved.

Due to their proximity to the government in Beijing, Chinese companies such as Huawei are under close scrutiny in many countries. The concern is that China could gain direct or indirect access to mobile phone users' data.

The USA has classified Huawei and ZTE as a threat to national security. In 2019, Congress instructed the FCC to oblige subsidy recipients under the US telecoms group to remove Chinese equipment. The Office of the President requested a further 3.1 billion dollars for this in October. Congress has not yet approved the funds.