FCC Raises $3.5 Billion in AWS-3 Sale to Fund Huawei, ZTE Gear Removal
Updated
Updated · Cord Cutters News · Jun 24
FCC Raises $3.5 Billion in AWS-3 Sale to Fund Huawei, ZTE Gear Removal
3 articles · Updated · Cord Cutters News · Jun 24
Summary
$3.5 billion-plus from the FCC’s AWS-3 auction will largely reimburse borrowing for the Rip and Replace program, with up to $3.3 billion earmarked to remove Chinese telecom equipment from U.S. networks.
Nearly $4.98 billion is needed to fully strip out and dispose of the gear, far above the $1.9 billion Congress originally provided, prompting lawmakers to authorize this one-time spectrum sale.
About 200 returned licenses from a 2014 auction were resold, putting mid-band spectrum back into carriers’ hands for higher-capacity 5G services and future 6G use.
Only 42% of funded recipients had completed replacement and disposal as of last week, with permitting delays, supply-chain problems, labor shortages and severe weather slowing progress.
The sale also marks a rare FCC auction after broader auction authority lapsed in 2023, tying spectrum policy directly to Washington’s long-running push to secure telecom infrastructure.
Is federal infighting over military spectrum jeopardizing America's future dominance in 6G technology?
As the 'Rip and Replace' program stalls, what is the true cost of these delays for rural America's connectivity?
With Chinese gear gone, how will the US defend networks against attacks that exploit American-made equipment?
AWS-3 Spectrum Auction Raises $3.57 Billion to Fund "Rip and Replace" of Chinese Telecom Gear: National Security, Industry Impact, and Future Policy
Overview
The FCC's AWS-3 spectrum auction concluded on June 23, 2026, raising $3.57 billion. This auction provided up to $3.3 billion to repay money borrowed for the 'Rip and Replace' program, which removes insecure Chinese telecom equipment from U.S. networks. By addressing the program’s funding shortfall, the auction ensured its continued progress and made necessary resources available. As a result, the nation’s telecommunications infrastructure is now better protected against security threats, resolving a major national security challenge and helping to safeguard American networks for the future.