Jan 14 2020
WASHINGTON – Today, a bipartisan group of leading national security Senators introduced legislation to encourage and support U.S. innovation in the race for 5G, providing over $1 billion to invest in Western-based alternatives to Chinese equipment providers Huawei and ZTE.
Heavily subsidized by the Chinese government, Huawei is poised to become the leading commercial provider of 5G, with far-reaching effects for U.S. economic and national security. With close ties to the Communist Party of China, Chinese state-directed technology companies present unacceptable risks to our national security and to the integrity of information networks globally. However, U.S. efforts to convince foreign partners to ban Huawei from their networks have stalled amid concerns about a lack of viable, affordable alternatives.
Today’s bipartisan legislation, the Utilizing Strategic Allied (USA) Telecommunications Act, would reassert U.S. and Western leadership by encouraging competition with Huawei that capitalizes on U.S. software advantages, accelerating development of an open-architecture model (known as O-RAN) that would allow for alternative vendors to enter the market for specific network components, rather than having to compete with Huawei end-to-end.
“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,” said Sen. Mark R. Warner (D-VA), who co-founded the wireless company Nextel before entering public service and currently serves as Vice Chairman of the Senate Select Committee on Intelligence. “We need to move beyond observing the problem to providing alternatives for U.S. and foreign network operators.”
“When it comes to 5G technology, the decisions we make today will be felt for decades to come. The widespread adoption of 5G has the potential to transform the way we do business, but also carries significant national security risks. Those risks could prove disastrous if Huawei, a company that operates at the behest of the Chinese government, military, and intelligence services, is allowed to take over the 5G market unchecked. This legislation will help maintain America’s competitive advantage and protect our national security by encouraging Western competitors to develop innovative, affordable, and secure 5G alternatives,” said Sen. Richard Burr (R-NC), Chairman of the Senate Select Committee on Intelligence.
“The Trump Administration’s lecturing of our allies about the dangers of relying on the Chinese for 5G is no replacement for the development of 5G alternatives,” said Sen. Bob Menendez (D-NJ), Ranking Member of the Senate Foreign Relations Committee. “This bill, which will supply the U.S. government with resources to help the private sector create viable 5G alternatives from all ends of the supply chain, is a long overdue step in the right direction. As I’ve said over and over again, confronting China is not the same as being competitive with China. It is time we do just that.”
“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,” Sen. Marco Rubio (R-FL), a member of the Senate Intelligence and Foreign Relations Committees, 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.”
“We should not accept a world that is forced to rely on Chinese telecommunication companies to unlock the benefits of 5G and next generation wireless technologies,” said Sen. Michael Bennet (D-CO), a member of the Senate Intelligence Committee. “It is imperative for America’s competitiveness and security that we develop alternatives for U.S. and foreign network operators. This $1 billion investment will send a strong, bipartisan signal that the United States is committed to developing viable, secure, and cutting-edge alternatives to China’s 5G technology while eliminating dependence on technology that poses real security threats.”
“5G technology presents a host of opportunities to transform American telecommunications,” Sen. John Cornyn (R-TX), a member of the Senate Intelligence Committee, said. “By helping to spur innovations in 5G, we can inoculate ourselves against the threat posed by China and encourage the development of technology that is secure, affordable, and economically beneficial to our allies.”
The Utilizing Strategic Allied (USA) Telecommunications Act would:
- Require the Federal Communications Commission (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.
“VMware is very supportive of the Utilizing Strategic Allied (USA) Telecommunications Act. Moving towards an open, virtualized RAN infrastructure will speed up 5G network integration and rollout, while decreasing deployment costs. We thank Senator Warner for his approach, which will foster U.S.-led innovation in the mobile technology space and give carriers more secure options to buildout our next-generation wireless infrastructure,” said Allwyn Sequeira, SVP & GM of Telco Edge Cloud Products for VMware.
“The security of America's communications networks is an essential component in ensuring our nation's economic leadership, now and in the future. It requires all of us -- the industry, the government and those who live and work here – collaborating on efforts to build and maintain smart and secure communications. Verizon appreciates the forward-thinking, bipartisan Members of Congress that introduced this bill today. We look forward to working with Congress as we move forward with this important measure,” said Robert Fisher, SVP Federal Government Relations, Verizon.
“AT&T applauds Senator Warner, Senator Burr and the bipartisan group of cosponsors for introducing legislation that will promote the development and deployment of open standards-based advanced telecommunications networks. We look forward to working with Congress through the legislative process to see this measure enacted,” said Tim McKone, Executive Vice President, Federal Relations, AT&T.
“Juniper Networks supports the ‘USA Telecommunications Act’ introduced by Senator Mark Warner, Senator Richard Burr and the bipartisan group of original cosponsors. The development of open standards and deployment of open standards-based interoperable equipment are crucial to the building of secure 5G networks. The Trust Funds that the Warner-Burr bill proposes would boost R&D spending as well as U.S. leadership in 5G. We look forward to working with Congress and the Administration to get this bill enacted into law and implemented," said Manoj Leelanivas, Executive Vice President and Chief Product Officer, Juniper Networks.
Bill text is available here.