The Federal Communications Commission (FCC) manages the Secure and Trusted Communications Networks Reimbursement Program, commonly known as the "Rip and Replace" program, to compensate eligible providers for the costs of removing, replacing, and disposing of communications equipment and services deemed a national security risk. According to the FCC, eligible applicants include providers of advanced communications services with 10 million or fewer customers that utilize equipment from Huawei Technologies or ZTE Corporation purchased on or before June 30, 2020.
Eligibility and Reimbursement Scope
The reimbursement program is restricted to entities that meet specific criteria defined under the Secure and Trusted Communications Networks Act of 2019. To qualify for funding, a provider must have 10 million or fewer customers and have obtained equipment or services from covered suppliers—specifically Huawei and ZTE—before the statutory cutoff date of June 30, 2020.
The FCC’s Wireline Competition Bureau oversees the claims process, which requires detailed documentation of the original equipment and the new, secure replacements. Reimbursement covers reasonable expenses incurred during the transition, including:
- Removal and disposal of non-secure equipment.
- Purchase and installation of replacement hardware and software.
- Professional services required to manage the network transition.
Funding Shortfalls and Congressional Oversight
While the program was initially authorized with $1.9 billion in funding, the FCC reported in 2022 that the total demand from eligible providers exceeded the available appropriation. According to official FCC filings, the initial round of applications requested approximately $4.65 billion, creating a significant funding gap.
Because the appropriation is capped, the FCC has implemented a prorated reimbursement system. In practice, this means that while providers are eligible for compensation, they may receive only a fraction of their total documented costs, depending on the availability of Congressional funding. Lawmakers continue to monitor the shortfall, as the removal of equipment from entities designated as security threats by the Public Safety and Homeland Security Bureau remains a priority for federal infrastructure policy.
Claims Process and Documentation
Providers must submit claims through the FCC’s online portal, providing proof of purchase, technical specifications of the replaced equipment, and invoices for the replacement costs. The FCC’s filing instructions emphasize that all claims undergo a rigorous audit process to ensure the equipment being replaced is on the "Covered List" and that the replacement equipment meets the required security standards.
Frequently Asked Questions
Who is eligible for the reimbursement program?
Providers of advanced communications services with 10 million or fewer customers who purchased Huawei or ZTE equipment on or before June 30, 2020.
What happens if the total claims exceed the funding?
The FCC uses a prorated distribution method. If total qualified claims exceed the $1.9 billion appropriation, providers receive a percentage of their total eligible costs.
Is there a deadline for equipment removal?
Deadlines are established by the FCC based on the date of funding approval and the scope of the project. Providers are expected to complete the removal and replacement process within the timeframe outlined in their approved reimbursement plan.
What equipment is considered a security risk?
The FCC maintains a List of Equipment and Services Covered by Section 2 of The Secure Networks Act, which identifies specific telecommunications equipment and services that pose an unacceptable risk to U.S. national security.
Worth a look