In 2019, the U.S. Congress passed the Secure and Trusted Communications Networks Act, formally launching the "Rip and Replace" program to systematically remove Huawei, ZTE, and other Chinese-made telecommunications equipment from American networks. In 2021, Congress appropriated $1.9 billion to reimburse eligible carriers for the costs of removing, replacing, and disposing of covered equipment.

However, as applications surged, the FCC discovered that actual funding requirements far exceeded initial projections. Upon reassessment, the total nationwide cost of completing equipment removal and replacement was estimated at $4.98 billion, leaving a funding gap of $3.08 billion. This meant government reimbursement would cover only roughly 40% of actual replacement costs, imposing severe financial strain on numerous rural and small-scale operators—some of whom faced the prospect of being forced to shut down their network services.

Spectrum Auction

To close the massive funding shortfall, the Fiscal Year 2025 National Defense Authorization Act, signed in December 2024, authorized the FCC to borrow $3.08 billion from the U.S. Treasury to fully fund the Rip and Replace program. This loan is to be repaid through proceeds from an AWS-3 mid-band spectrum auction. On June 2, 2026, the FCC officially launched Auction 113—its first spectrum auction since its auction authority lapsed in March 2023. The auction encompasses 200 AWS-3 band licenses across the 1695–1710 MHz, 1755–1780 MHz, and 2155–2180 MHz frequency ranges, covering 48 states, two U.S. territories, and the Gulf of Mexico, serving a population exceeding 100 million.

As of mid-June 2026, Auction 113 has raised approximately $3.5 billion. Seventeen qualified bidders, including SpaceX, have participated, fueling market speculation regarding the company's potential satellite direct-to-device deployment strategies. The auction serves not only national communications infrastructure security objectives but also channels its proceeds directly toward repaying the Rip and Replace program loan, creating a closed-loop mechanism in which spectrum revenues are used to close security funding gaps.

Program Implementation Status

Despite the gradual alleviation of funding constraints, execution of the Rip and Replace program remains notably behind schedule. According to the FCC's latest report to Congress in June 2026, of 126 approved projects, only 53 (42%) have completed permanent removal, replacement, and disposal of covered equipment, while 12 carriers have fully satisfied all program closeout requirements. Approximately 30 operators have requested deadline extensions due to supply chain disruptions, weather-related delays, and other factors—more than seven years after the original 2019 legislation was enacted.

CONEVO Global ICs Distributor

Conevo Electronics is a Hong Kong-based global IC distributor, specializing in FPGA, MCU, DSP, converters, and MLCC for aerospace, automotive, medical, and industrial OEM/EMS clients. With a worldwide supply chain and in-house engineering team, Conevo offers component sourcing, project solutions, and design support services. Conevo's Featured Components are as follow.

● DRV8332DKDR:13A three-phase BLDC motor driver with integrated power MOSFETs, PWM control, and comprehensive fault protection in a 36-HSSOP package, ideal for industrial automation and robotics.

● 5SGXMA3K2F40I2LN: Stratix V GX FPGA featuring 340K logic elements, 696 I/Os, and 36 transceivers up to 14.1 Gbps, housed in a 1517-FBGA package for high-bandwidth networking and signal processing.

● AD5242BRZ10: dual-channel 256-tap digital potentiometer with I²C interface, 10kΩ nominal resistance, and 30 ppm/°C temperature coefficient in a 16-SOIC package for precision gain and offset adjustment.

Website: www.conevoelec.com

Email: info@conevoelec.com