FCC approves more 'rip-and-replace' extensions due to supply chain

The FCC last week approved additional requests from five service providers for extensions to complete the process of ripping and replacing network gear from Huawei and ZTE. The companies in question largely cited supply chain issues as their reason for the request, as well as the program's funding shortfall.

"Rip-and-replace" – shorthand for the Secure and Trusted Communications Networks Reimbursement Program, created by the 2019 Secure and Trusted Networks Act – provided $1.9 billion for network operators to remove and replace equipment from Chinese companies deemed insecure by the US government. The program has since received $5.6 billion in funding requests, resulting in calls for Congress to pass additional appropriations for the program. That request – like calls for Affordable Connectivity Program (ACP) funding – remains unfulfilled, despite bipartisan support.

But that lack of funding has hindered the program's progress. While providers are given a year from the initial disbursement of funds to finish replacing their network equipment, many have fallen behind.

Indeed, in a letter to Congress in May, FCC Chairwoman Jessica Rosenworcel said that "64 percent of the status updates filed in April 2024 indicated that the lack of full funding continues to be an obstacle to completing the permanent removal, replacement, and disposal of the covered communications equipment and services in recipients' networks" and that "nearly 40 percent of the participants reported that they cannot complete the work required under the Reimbursement Program without additional government funding."

Related:FCC warns of 'significant consequences' without more rip-and-replace funds

As such, the FCC has been fielding requests from operators for extended time to complete the process of replacing their network equipment, and issuing approvals as warranted.

Latest batch

In its latest notice on the matter, issued last week (August 29), the FCC approved five more providers' extension requests – some of which had been granted extensions before – due largely to supply chain issues.

That includes Advantage Cellular Systems (ACS), AST Telecom (Bluesky) and Country Wireless, which were each granted second six-month extensions due to supply chain issues. Inland Cellular was also granted its first eight-week extension for supply chain reasons.

On supply chain specifics, AST, for example, cited delays with "shipping [covered equipment] long distances by ocean freight from [its] remote island territory," and the "logistics of ocean transportation (to include weather challenges that may be posed by hurricanes)."

Related:The US is moving very, very slowly away from Huawei

Country Wireless noted that "the manufacturer of [its] replacement equipment experienced an 8-week delay in shipping between April and June of 2024" which "pushed back [its] construction start to mid-August on ten . . . towers."

ACS, too, pointed to equipment delivery delays, as well as delays in securing "available work crews."

In addition to those providers, NE Colorado Cellular was granted a second six-month extension due to the lack of full funding, which has forced the provider to "release some construction crews, leading to project delays." The FCC notes that the provider "has taken further steps to mitigate the lack of available funding" since it was granted its first six-month extension, but that "these mitigation steps have also resulted in project delays."

One take-back

The FCC's notice also rescinded one previously granted extension for Mediacom Communications.

According to the FCC, the agency had granted a three-month extension for Mediacom on July 31, 2024. However, the company has since filed a final certification, dated July 25, 2024, confirming it had completed its rip-and-replace work.

"[To] ensure program efficiency and overall clarity of the record, the three-month extension is moot, and the Bureau hereby rescinds the extension that it previously granted to Mediacom on July 31, 2024. Accordingly, Mediacom's deadline to have removed, replaced, and disposed of covered equipment and services in its network remains July 15, 2024," said the FCC.