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US creates $1bn fund to replace Huawei kit

(Image credit: O2)

The US wants small and rural wireless providers to replace Huawei’s (opens in new tab)5G gear and it’s setting aside a bunch of money to make it happen. A new, bipartisan legislation was announced, earlier this week, setting aside $1 billion for local wireless providers.

The US government wants Huawei’s and ZTE’s 5G gear out of the picture, claiming it’s a liability and a risk to national security.

A bipartisan panel from the House Energy and Commerce Committee said the bill would defend the “nation’s communications networks from foreign adversaries by helping small and rural wireless providers root-out suspect network equipment and replace it with more secure equipment.”

The panel is expected to hold a hearing on the bill later this week, on Friday. Even though a direct successor to Huawei (opens in new tab)is not yet known, the media are speculating that Ericsson and Nokia are the biggest contenders.

Earlier this year, the US Senate Committee issued a similar legislation, approving some $700 million in grants for the same cause – eliminating Huawei’s gear from US networks.

Huawei hasn’t commented yet.

The company has come under attack from the US government, which claims its gear could be used by the Chinese government for espionage. Huawei (opens in new tab)has denied these accusations, offering audits, and even offering its own code so that independent analysts can determine the level of security.



Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.