FCC cites deficiencies in requests for funds to replace telecom equipment from Chinese companies

The Huawei logo is pictured in the Manhattan borough of New York, New York, U.S., July 22, 2019. REUTERS/Carlo Allegri

WASHINGTON (Reuters) - The Federal Communications Commission (FCC) told Congress on Wednesday that two thirds of applications for funds from a $1.9 billion program to reimburse mostly rural U.S. carriers for removing equipment from telecommunications networks from Chinese companies deemed national security threats are deficient.

FCC Chair Jessica Rosenworcel said of 181 applications filed, 122 were found to be "initially materially deficient." The FCC told applications they have 15 days to fix their applications, and it "expects to complete this process by July 15." The FCC currently estimates the cost estimate to remove the equipment from companies like Huawei and ZTE Corp from the "rip and replace" program is $5.3 billion, much higher than what Congress set aside.