Wireless carriers are getting understandably antsy about potentially having to foot much of the multi-billion-dollar bill for ripping and replacing suspect tech from their networks, which they must do at the command of Congress and the FCC.
In a letter to House and Senate leaders, the Competitive Carriers Association and others called on Congress to fully fund the program.
The FCC signaled last week it would come up about $3 billion short given how much money was applied for -- over $5 billion -- and how much Congress set aside -- under $2 billion -- in the Secure and Trusted Communications Network Act.
Also: FCC Is $3 Billion Short on Rip and Replace
If Congress does not fork over more, the FCC says that it has no choice -- given Congress' directive on the program -- to pay cents on the dollar and only to the first priority group. The FCC said that all the money it currently has will not even cover the eligible applicants in group 1 -- there are four groups -- which will only get 39.5 cents on the dollar.
Group one comprises applicants with fewer than two million customers.
“This is not only a national security issue, but it is an important consumer issue as well," said CCA President Steven K. Berry. "Failure to make up for the funding shortfall threatens the availability of advanced communications to residents and visitors in large parts of the country, especially in rural areas – an outcome that no one wants to see."
The outcome of cents on the dollar is definitely not the outcome Berry is looking for.
"The FCC has pro-rated available funds as directed by law, leaving affected carriers in a hole they may never be able to climb out of," he said. "I strongly encourage Congress to act immediately to help secure support to fully fund the program and provide the FCC with the necessary funds to address the current shortfall. Time is of the essence."
Help could be on the way.
On July 13, the House Energy & Commerce Committee unanimously approved -- 52 to 0 -- the Spectrum Innovation Act of 2022, which reauthorizes the FCC's spectrum auction authority. Among many other things, that bill would direct some of the proceeds from upcoming auctions to help pay for rip and replace. ■
