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Removing Chinese Telecommunications Equipment From U.S. Broadband Networks Would Cost More Than $1 Billion

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WASHINGTON, June 27, 2019 – When it comes to removing Huawei or ZTE telecommunications equipment from U.S. broadband networks, a strategy of “rip and place” would cost well over $1 billion.

Rural broadband carriers don’t have the budget for that, and they are concerned that the costs of a retrofit would delay the deployment of 5G wireless networks.

That was the message that multiple broadband providers – particularly rural entities – delivered to Federal Communications Commissioner Geoffrey Starks at a Thursday FCC workshop that had been framed as a discussion about network security.

Starks staked out a strong position against the use of Chinese telecommunications equipment in U.S. broadband networks, noting existing steps by the Trump administration to prohibit procurement of telecommunications equipment from Huawei and ZTE.

Starks convened the discussion at the agency, however, to address equipment that is already inextricable intertwined within U.S. networks.  “Network security is national security, and our interconnected networks are only as secure as their most vulnerable pieces,” he said.

The discussion applies to wired networks because equipment to run fiber-optic wires will be more instrumental in operating 5G networks than previous technologies. Mike Saperstein, vice president of policy and advocacy at US Telecom, said he is in support of federal risk management activities to “identify supply-chain threats.”

Others cited the distinction between trusting equipment and trusting suppliers. Much of 5G and 4G traffic will not necessarily pass through a network core, said Brian Hendricks, vice president of policy and government relations at Nokia. The radio layer of a mobile network has become a more vulnerable point of attack.

The issue of deploying 5G will fall “particularly hard” on small rural carriers in the United States, Hendricks said.

The only way to eliminate any risk would be to ban Chinese equipment entirely, said Jim Lewis, senior vice president and director for the Center for Strategic and International Studies. And such a “rip and replace” is not tenable, he said.

Moreover, he said, just as big American tech companies use Chinese components in their equipment, Chinese telecom depends on U.S. technological advancements.

And doing anything that would delay the deployment of 5G technology would ultimately hinder the economy.

Carri Bennet, general counsel at The Rural Wireless Association. Cited the figure of more-than $1 billion figure for replacing all Huawei and ZTE equipment. And attempting to replace network equipment while the network is still in operation could create service issues, including for public safety.

She suggested that it would be good to start with third-party monitoring of carrier networks.

“We should not be reliant on suppliers from adversarial nations to design manage and secure our critical infrastructure, especially as we develop cloud technologies,” said Travis Russell, director of cybersecurity at Oracle Communications. There is no finalized definition yet of what a stand-alone 5G network would look like, he said, so there is still time to “work out a solution” for this dilemma.

The FCC has a vital role in understanding the issues that small, rural carriers face, said Dileep Srihari, senior policy counsel at Telecommunications Industry Association.

Many rural providers lack the budget to replace banned equipment, said Jeff Johnston, senior economist at CoBank.

A “rip and replace” strategy to remove equipment that some have suggest is not secure would bear an “enormous” opportunity cost for rural carriers relying on Huawei for telecom infrastructure, said Christopher Reno, chief accounting officer at Union Telephone Company.

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5G

Google, Reliant On Success of 5G, Says It Wants Government-Funded Test Beds for Open RAN

Company says that the next generation of its products depend on 5G progress.

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Alphabet CEO Sundar Pichai

WASHINGTON, October 20, 2021 — Google made its case for regulators to make room for greater public-private collaboration in the wake of 5G and more research into open radio access network technologies.

Speaking at the FCBA’s “What’s New and Next in Wireless” session on Tuesday, Michael Purdy from Google’s product and policy team emphasized Google’s interest in the emerging 5G landscape, but wants a “collaborative environment” for innovation.

“5G is exciting because of Google’s products depend on 5G,” he said. “[Our] products can’t come to market without it.” Google’s recent product launches include smart-home technologies. Purdy says their products’ benefits are enhanced as 5G is deployed.

Google, like the technology sector at large, is building on the innovation that the “app economy” produced using existing 4G technology and plans to expand their software capabilities with 5G. “The app economy benefited consumers,” Purdy says. “Our lifestyles are going to depend on 5G.” For telehealth, “real time medical advice needs low latency [and] high speeds.”

However, Google hopes for better regulatory conditions during 5G deployment. “We haven’t been as focused on the FCC [for guidance] . . . we want stability to determine spectrum policy.”

Purdy said the company hopes to work collaboratively with government to find solutions for wider 5G deployment. “[We] want to know what position the government takes in creating an open RAN environment.”

The company said it wants government funded-test beds for open RAN, research into development to ensure that “the downside costs are defrayed.” In overcoming these challenges to 5G deployment, Purdy said Google wants the government to foster a “collaborative environment” to develop open RAN. “We don’t want government picking winners and losers in the innovation process” he said.

Purdy added that spectrum sharing between licensed and unlicensed users “can be good for consumers and for industry.”

The Federal Communications Commission has pushed for ways to develop open RAN to minimize network security risk, as the movement has gained significant momentum. FCC Acting Commissioner Jessica Rosenworcel has described open RAN as having “extraordinary potential for our economy and national security.”

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Huawei Avoids Network Security Questions, Pushes 5G Innovation

Huawei’s CTO avoided questions about concerns over its network infrastructure security as countries ban its products.

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Huawei carrier business CTO Paul Scanlan.

WASHINGTON, October 19, 2021 — Huawei’s chief technology officer did not address questions Monday about the company’s network security practices during a session on how 5G drives economic growth, but said the focus should be on the evolutionary technology instead.

Paul Scanlan, Huawei’s CTO in the carrier business group, focused his presentation at the Economist Impact Innovation@Work conference on the promise of 5G technology and ignored concerns about network safety.

“We can service more customers with 5G” to start bridging the digital divide, he said. The pandemic has given the company an insight into customer behavior to better channel its data traffic needs. “5G performs better for the types of services we use now” he says, such as video streaming and user-generated content.

Scanlan avoided specific questions about his company’s technology and steered the conversation toward providing faster speeds for the health care industry. “Give me some use instances where the company has introduced 5G and helped companies be efficient” asked the moderator, Ludwig Siegele. “I’d like to stick on the health care sector, that’s more topical as you can imagine,” Scanlan responded.

“People are missing [innovation in 5G] because of geopolitical issues around the world,” said Scanlan. “Being able to collect the data and analyze it is where the business benefit lies . . . 5G adoption through the [standardized network] ecosystem is very important and we see this with 5G” for interoperability with other companies and providers.

Huawei’s promotion of their telecommunications products continues as the U.S. maintains national security sanctions against the tech giant. The impact of U.S. sanctions results a drop in sales for the company in 2021. The FCC has also recommended that Huawei’s equipment be listed as “high risk” to U.S. network security. Huawei told the FCC it cannot show the company’s equipment is a threat to U.S. networks.

Huawei’s global head of cybersecurity said this summer that President Joe Biden‘s executive order banning investments in Chinese companies is a “policy misstep” that will not only lose the U.S. a huge market, but will just make the company more self-sufficient.

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Celebrating Progress on 5G, the FCC’s Brendan Carr Urges Broadband Mapping

5G crusader Commissioner Brendan Carr voiced pride in the FCC’s focus on 5G over the past four years

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Photo of Brendan Carr from the Tennessee Star

WASHINGTON, October 15, 2021–Federal Communications Commissioner Brendan Carr on Friday celebrated U.S. progress in 5G wireless investment and urged the completion of the agency’s broadband mapping initiative.

Speaking a the Free State Foundation gala luncheon, Carr argued that the United States has progressed in its 5G investments and is catching up to foreign networks. ”Years ago we imaged the U.S. would be left behind in 5G,” he said.

He touted his and former FCC Chairman Ajit Pai’s efforts to “remove the red tape.” Enabling the private sector has paid off, he said: The U.S. has jumped 20 places on the country internet speed index, signaling the installation of more robust U.S. 5G networks.

Further, the FCC should complete its broadband mapping process and take caution with the federal money allocated toward broadband deployment, he said, adding that he asked the FCC earlier this year to complete its map by fall 2021.

“There’s planning that can take place when the maps are completed” he said, reflecting a desire from the public and private sector for better, more accurate broadband maps.

He also said that federal money allocated toward the FCC’s efforts to bridge the digital divide should be used carefully, and that money to connect unconnected Americas should not be wasted.

Carr celebrated American investment in 5G progress earlier this year, calling U.S. leadership in 5G “one of the greatest success stories in of the past four years.” In that time, the FCC opened up more than six gigahertz of spectrum for 5G services.

Former FCC Commissioner Michael O’Rielly also gave remarks at the event, expressing concern about the federal Made In America policy’s implications on the telecommunications sector.

The Made in America policy refers to President Biden’s push to increase American made content in supply chains. O’Rielly, who left the Commission in December 2020, argued that the policy limits telecommunications companies to the kinds of products that can be made available to consumers.

The Free State Foundation’s Randy May at the Friday event

He also questioned “what it means to be an American manufacturer” because foreign companies are “in essence, being punished by law” for having “investments in the U.S. with U.S. workers as part of a U.S. subsidiary.”

In O’Rielly’s view, the location of the companies headquarters does not impact its national security risk to the U.S.

The remarks by Carr and O’Rielly were at the 15th anniversary celebration for the free-market think tank. Carr said that the foundation has been an “invaluable resource” and has been cited more than 200 times in FCC decisions.

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