The U.S. government intends to invest $1.5 billion in domestic 5G equipment production to replace Huawei and ZTE 5G telecom gear.

According to Android Headlines, this is a part of an effort to remove Chinese gear from the U.S.’s current telecom network.

The outlet noted that countries worldwide want to purchase 5G gear from Huawei and ZTE due to low prices. However, the Federal Communications Commission has added both firms to a trade blacklist as both firms have alleged military ties with China.

The real purpose of this plan is not just to “rip and replace” but to create a unique “standard-based” replacement for Huawei, ZTE, Ericsson, Nokia, and Samsung.

This means this program is only developed by the U.S., while overseas companies are forbidden to join. Moreover, the wireless firms in the country are also required to purchase 5G telecom gear only from domestic suppliers.

The plan will primarily focus on ORAN (Open Radio Access Network), which uses standard computing components to replace overseas networking gear.

The U.S. 5G program will start with a public comment period, which will last until January 23, next year. The budget comes from the Chips and Science Act.

ORAN is already used by Dish Wireless and Japan’s Rakuten. Dish Wireless has signed a $1 billion agreement with Samsung to purchase RAN, vRAN software, and ORAN radio units.

Therefore, the new U.S. 5G plan might prompt Dish Wireless to review its contracts with overseas producers. Android Headlines reported that the Biden administration is allocating $1.9 billion to take out Huawei and ZTE gear from domestic wireless firms. Another $3 billion will also be allocated following approval from Congress.

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