FCC Proposes Fine Against ISP Over 'Rip and Replace' Inspection Dispute

May 28, 2026 — The Federal Communications Commission has proposed a $14,000 fine against New York-based internet provider Stealth Communications for allegedly refusing to allow federal inspectors access to facilities tied to the agency’s “Rip and Replace” reimbursement program.

According to the FCC’s Notice of Apparent Liability for Forfeiture, Stealth Communications Services LLC denied inspectors access to two company equipment sites during scheduled compliance reviews conducted last November.

The agency said the refusal obstructed its ability to verify whether the company properly complied with program requirements governing the removal of equipment deemed national security risks.

“Such conduct obstructs the Commission’s ability to ensure the company’s compliance with program requirements,” the FCC wrote in the filing, adding that the actions hinder oversight efforts designed to prevent “waste, fraud, and abuse.”

Stealth, a fiber-based broadband provider operating in New York, participated in the Secure and Trusted Communications Networks Reimbursement Program, commonly known as ‘Rip and Replace.’ 

The initiative was established under the Secure and Trusted Communications Networks Act of 2019 and formally launched in 2022 to reimburse smaller telecommunications providers for removing and replacing equipment from companies considered national security threats, primarily Chinese manufacturers Huawei Technologies and ZTE Corporation.

The program applies to communications providers serving 10 million or fewer customers and was created amid broader federal concerns about potential Chinese government access to U.S. telecommunications infrastructure.

According to the FCC’s Enforcement Bureau, Stealth submitted more than 170 reimbursement filings by November 2025 covering equipment removal, replacement and disposal activities. The company has received more than $38,000 in reimbursement claims to date.

The agency said those two facilities collectively contained 67 pieces of covered equipment and 81 replacement devices, making the inspections particularly important to determining compliance.