Senators propose $1 billion funding to bolster U.S. competitors in 5G

U.S. Senators Marco Rubio (R-FL), Mark Warner (D-VA), Richard Burr (R-NC), Bob Menendez (D-NJ), Michael Bennet (D-CO), and John Cornyn (R-TX) are proposing a $1 billion government to bolster Western-based alternative to Huawei and ZTE.

The Utilizing Strategic Allied (USA) Telecommunications Act would “reassert U.S. and allied leadership by encouraging competition with Huawei. Specifically, the bill would:

• Require the FCC to direct at least $750 million, or up to 5 percent of annual auction proceeds, from new auctioned spectrum licenses to create an O-RAN R&D Fund to spur movement towards open-architecture, software-based wireless technologies, funding innovative, ‘leap-ahead’ technologies in the U.S. mobile broadband market. The fund would be managed by the National Telecommunications and Information Administration (NTIA), with input from the FCC, Defense Advanced Research Project Agency (DARPA), and National Institute of Standards and Technology (NIST), among others;
• Create a $500 million Multilateral Telecommunications Security Fund, working with our foreign partners, available for 10 years to accelerate the adoption of trusted and secure equipment globally and to encourage multilateral participation, and require reports for Congress on use of proceeds and progress against goals to ensure ample oversight;
• Create a transition plan for the purchase of new equipment by carriers that will be forward-compatible with forthcoming O-RAN equipment so small and rural carriers are not left behind;
• Increase U.S. leadership in International Standards Setting Bodies (ISSBs) by encouraging greater U.S. participation in global and regional telecommunications standards forums and requiring the FCC write a report to Congress with specific recommendations;
• Expand market opportunities for suppliers and promote economies of scale for equipment and devices by encouraging the FCC to harmonize new commercial spectrum allocations with partners where possible, thus promoting greater alignment with allies and driving down the cost of Huawei alternatives. 

“We are at a critical point in history for defining the future of the U.S.-China relationship in the 21st century, and we cannot allow Chinese state-directed telecommunications companies to surpass American competitors,” Senator Rubio said. “It is not only in our national security interests to support American competition in the 5G market, but it is also in our economic interests to continue to build and support an economy that leverages American strengths and creates American jobs in the industries of the future without relying on malign Chinese state-directed actors like Huawei and ZTE.”

“Every month that the U.S. does nothing, Huawei stands poised to become the cheapest, fastest, most ubiquitous global provider of 5G, while U.S. and Western companies and workers lose out on market share and jobs. Widespread adoption of 5G technology has the potential to unleash sweeping effects for the future of internet-connected devices, individual data security, and national security. It is imperative that Congress address the complex security and competitiveness challenges that Chinese-directed telecommunication companies pose,” Warner said. “We need to move beyond observing the problem to providing alternatives for U.S. and foreign network operators.” 

https://www.rubio.senate.gov/public/index.cfm/press-releases?ID=80D299D0-F416-484F-B685-82FE1BAF3A89