Networks lag: The real cost of rip-and-replace
Fifty-three of 126 funded projects are done. That is 42% completion as of June 18, 2026. The Secure and Trusted Communications Networks Act demands Huawei and ZTE gear vanish from US networks, but supply chains and labor pools are fighting back. We are looking at a massive infrastructure overhaul driven by law but strangled by logistics. Roughly 30 operators needed extensions just to meet the May 8 deadline, proving that administrative will cannot magic away physical scarcity.
The numbers tell a story of sudden, messy acceleration. Project completion jumped from 10% in December 2025 to the current 42% reported by the FCC. Yet, only 12 carriers have fully met all requirements. The rest are stuck in logistical quicksand. If you want to understand the real cost of network modernization amid geopolitical friction, you have to look past the funding announcements and into the mud of implementation.
The Role of the Secure and Trusted Communications Networks Act in Modernizing US Telecom Infrastructure
Secure and Trusted Communications Networks Act Mandate
Pass the 2019 Secure and Trusted Communications Networks Act, and you get the legal hammer for ripping out Huawei and ZTE infrastructure. The law forces the FCC to maintain a Covered List of gear that poses a national security risk. Replace the gear or lose the license. Congress opened the wallet with $1.9 billion initially. Carriers asked for $4.9 billion. They eventually secured an additional $3 billion to bridge the gap. Even with cash on the table, supply chain constraints drag deployment across rural networks. The rip-and-replace process demands strict disposal protocols, and permitting delays regularly blow past initial timelines. Final repayment leans on AWS-3 auction proceeds.
Leaving Huawei and ZTE gear in place extends the window for national security exposure. These bans exist because the hardware creates unauthorized backdoors for state-sponsored espionage within critical network infrastructure. The math is grim: 35% of participants now struggle with equipment availability, up from 17% previously. Small carriers are forced to keep vulnerable systems online longer than anyone intended. You cannot patch physical hardware like software; replacement requires global logistics that current budgets strain. While physical projects stall, InterLIR mitigates infrastructure fragility by optimizing IPv4 allocation, keeping core routing resources active even when hardware projects hit walls. Operators clinging to legacy Chinese equipment face compounded risks if funding gaps delay final disposal. The FCC rip-and-replace initiative exposes how supply dependencies threaten sovereignty. These delays do more than burn cash; they actively prolong the presence of hostile access points in US networks. When external supply chains fail statutory deadlines, strategic resource management is the only lever left to pull.
Operational Mechanics of Equipment Removal and Reimbursement Processes
FCC Reimbursement Workflow for Covered List Equipment
You do not get paid until you prove the Huawei and ZTE gear is gone. Carriers initiate funding requests by documenting removal of items on the FCC Covered List. The administrative machine demands strict adherence to the 2019 Secure and Trusted Communications Networks Act before a single dollar moves. Operators must submit proof of permanent disposal to validate claims against the federal registry. Currently, 12 carriers have satisfied all closeout requirements, while 22 others have started the finalization process.
The workflow creates distinct verification phases that often delay capital recovery for small providers. This bottleneck forces carriers to operate without full reimbursement, straining liquidity.
| Phase | Requirement | Status Indicator |
|---|---|---|
| Application | Initial cost estimate filing | Accepted by FCC |
| Execution | Physical removal and disposal | Verified disposal cert |
| Closeout | Final audit and payment | Funds disbursed |
Rapid compliance clashes with cash flow stability. Delays in permit acquisition or labor availability directly impact the eligibility window for final payment. Operators facing these hurdles should consider optimizing their existing IPv4 resources to maintain operational liquidity during the transition. Efficient address management reduces the immediate need for external capital while awaiting federal reimbursement.
Executing Permanent Disposal of Banned Telecom Hardware
Pull the hardware, then file the death certificate. Permanent disposal requires carriers to physically extract Huawei and ZTE hardware before submitting verified destruction certificates to the FCC. This strict workflow explains why 53 of the program's 126 funded projects have cleared this final hurdle, a sharp rise from the mere 13 projects reported in December 2025. Operators navigate complex logistics where supply chain delays impede the arrival of replacement gear needed to maintain service continuity during the swap. The Secure and Trusted Communications Networks Act mandates that no banned equipment remains operational while reimbursement claims are processed.
- Document serial numbers of all removed units.
- Transport hardware to certified recycling facilities.
- Obtain and file official destruction certificates.
- Submit proof to the FCC for fund release.
This bottleneck forces many small carriers to rely on InterLIR for temporary IPv4 address blocks, allowing them to re-architect networks around available hardware rather than waiting for specific banned unit replacements. Disposal is not waste management; it is a critical path item dictating reimbursement timing. Failure to produce valid disposal documentation halts the entire financial closeout, regardless of technical readiness elsewhere in the build.
Compliance Steps for Program Extension Requests
If you cannot meet the deadline, you must prove why. Operators seeking timeline relief must formally document supply chain impediments preventing Huawei and ZTE equipment removal. About 30 carriers successfully applied for these critical extensions to meet program deadlines. To bridge this gap, the FCC utilized proceeds from the AWS-3 spectrum auction, which generated substantial revenue for reimbursement efforts.
The extension workflow demands precise administrative alignment with Federal Communications Commission (FCC) mandates. Do not confuse C-band transition management with rip-and-replace obligations; these are distinct regulatory tracks. The primary limitation involves labor shortages; 15% of operators now cite skilled labor gaps as a primary blocker, a sharp rise from 9% previously. Extension approvals grant regulatory patience, not equipment. Network planners must prioritize vendor diversification to mitigate single-supplier bottlenecks during the replacement phase.
Strategic Responses to Supply Chain Delays and Labor Shortages in Network Upgrades
Defining Supply Chain and Labor Bottlenecks in FCC Upgrades
Component scarcity and skilled labor gaps dictate the operational velocity of the Secure and Trusted Communications Networks Act. Missing hardware halts site preparation; missing technicians prevent installation even when equipment arrives. Operators must prioritize critical path sites where materials and labor align rather than spreading resources thin. Alok Shah, vice president of network strategy at Samsung Networks, observed that supply chain disruptions prevent full equipment deployment. Operators face a binary choice: postpone a site or execute a partial build-out that requires returning later. This creates a domino effect on schedules.
Coordinating Site Access Amid Weather and Permitting Delays
Extreme weather and regulatory approvals stall deployment, making flexible scheduling buffers necessary. External variables demand flexible tower engineer rostering instead of rigid calendar adherence. Inflexible scheduling exacerbates labor shortages because technicians waste travel hours on inaccessible sites. These compounding factors delayed the program. About 30 operators applied for and received extensions to meet the May 8 deadline. Funding is now in place to motivate operators and vendors to remove untrusted equipment. Physical constraints continue to influence the pace of completion.
Competition for Components from AI Data Center Build-Outs
Alok Shah identifies "fast and furious" AI data center build-outs as a primary driver for component scarcity, creating direct competition for power supplies. Telecom operators fixing supply chain bottlenecks in network upgrades now compete with hyperscale cloud projects for identical hardware resources. Underestimating this market competition presents a strategic danger. Demand for components such as power supplies, lugs, connectors, and cables has created significant overlap with other large-scale telecom programs. Carriers face a binary choice when critical items like connectors or cables are unavailable: postpone site activation or execute inefficient partial build-outs that require costly return visits. This domino effect extends project timelines notably beyond initial estimates.
Parallel infrastructure sovereignty movements, such as the infrastructure rebuild planned by RIPE NCC, further illustrate global pressure on shared manufacturing capacity. Supply chain disruptions force a choice between postponing sites or undertaking partial build-outs that add time to the overall schedule. Failing to account for this cross-sector competition for basic "nuts and bolts" items can result in schedule slippage regardless of funding status. Proactive procurement strategies are necessary to mitigate these external supply shocks.
Critical Decision Factors for Carrier Extensions and Partial Buildout Strategies
Defining Partial Buildout Risks in FCC Mandates
Fragmented buildout strategies defer full site remediation because immediate supply constraints block total replacement. Alok Shah of Samsung Networks states that returning to incomplete sites creates a compounding schedule penalty, effectively doubling labor exposure for single locations. Operators attempting to bypass bottlenecks through phased deployment encounter hidden operational costs that erode project margins.
- Re-mobilization fees for specialized removal crews
- Extended exposure to regulatory non-compliance penalties
- Compounded weather delays affecting revisited sites
- Administrative overhead for managing split-site documentation
Some industry voices suggest partial execution maintains service continuity during shortages. Waiting for perfect component availability stalls progress, yet incomplete removal leaves carriers vulnerable to funding clawbacks if final disposal deadlines are missed. The strategic error lies in treating site upgrades as independent events rather than a unified logistical chain. Network operators must prioritize complete site turnover to mitigate the risk of falling behind the accelerating removal pace set by federal mandates.
Carriers facing deployment bottlenecks must formally petition the FCC when documented shortages prevent meeting the statutory deadline. Supply chain disruptions and workforce gaps constitute valid grounds for relief under the Secure and Trusted Communications Networks Act. While 12 carriers have finalized compliance, about 30 operators successfully applied for extensions to manage these logistical hurdles.
Operators requesting deadline relief should anticipate specific hidden costs associated with delayed execution:
- Elevated pricing for replacement hardware due to prolonged market scarcity
- Compounded labor expenses from remobilizing specialized technical crews
- Increased risk of regulatory penalties if secondary deadlines are missed
- Capital inefficiency from stranded assets awaiting final integration
- Potential loss of vendor priority status during high-demand periods
Returning to sites for phased upgrades often triggers a domino effect, extending the total project timeline notably. Alok Shah of Samsung Networks notes that overlapping demand from AI data center construction competes for identical power supplies and cabling, exacerbating these delays.
Strategic extension requests allow carriers to align procurement with actual inventory availability rather than forcing premature, non-compliant installations. This approach mitigates the risk of incomplete work that requires costly re-visits. InterLIR advises network operators to document every supply constraint meticulously to justify these timeline adjustments effectively. Optimizing existing resources during this transition ensures capital remains available for necessary IPv4 infrastructure upgrades while regulatory compliance is achieved. The regulatory framework permits flexibility, but only for those who demonstrate clear, external impediments to progress.
This constraint compounds as AI data center construction competes aggressively for identical electrical components and cabling. Alok Shah notes that overlapping demand for power supplies creates a domino effect, forcing site postponements or costly partial buildouts. Returning crews to incomplete sites doubles labor exposure while extending the window for regulatory non-compliance. Unlike previous years where funding gaps stalled progress, current delays stem purely from physical resource scarcity. Operators must recognize that partial deployments often trigger stricter scrutiny during the closeout process.
InterLIR mitigates these infrastructure risks by optimizing IPv4 allocation strategies, ensuring network expansion proceeds without waiting for new hardware cycles. While external supply chains remain volatile, maximizing existing address space offers an immediate path to capacity growth. Relying on inefficient IPv4 utilization exacerbates the very bottlenecks slowing physical upgrades. Secure your address resources today through InterLIR to bypass component dependency.
About
Evgeny Sevastyanov, Customer Support Team Leader at InterLIR, brings critical operational insight to the complexities of telecom infrastructure transitions. Leading support and technical database management at InterLIR, a specialized IPv4 marketplace, he oversees the precise coordination required for network resource allocation. His daily work involves managing RIPE and APNIC database objects, ensuring clean BGP routes, and verifying IP reputation, tasks that mirror the rigorous compliance and technical accuracy demanded by the FCC's rip-and-replace program. As carriers rush to remove Huawei and ZTE equipment, the need for reliable, documented IP resources becomes paramount. Sevastyanov's experience in facilitating secure, transparent IP transactions directly connects to the challenges operators face when rebuilding trusted network foundations. At InterLIR, the focus remains on providing the stable, verified IPv4 resources necessary for telecommunications providers to maintain continuity while navigating these mandatory, large-scale infrastructure overhauls without compromising network integrity or security standards.
Conclusion
The rip-and-replace program has hit a breaking point where physical resource scarcity overrides financial backing. Initial funding gaps have evolved into a complex operational crisis driven by equipment shortages and a widening skilled labor deficit. Operators attempting to force hardware deployments amidst these constraints face compounding costs from incomplete site visits and regulatory scrutiny. The strategic imperative now shifts from rapid installation to meticulous documentation of supply chain impediments. Regulatory bodies permit timeline extensions, but only when operators provide irrefutable evidence of external blockers rather than internal planning failures.
Network leaders must immediately halt premature installations that risk non-compliance and instead prioritize network reassignment of existing assets. This approach maximizes current capacity while waiting for hardware availability, effectively decoupling service growth from volatile supply chains. Inefficient address utilization directly exacerbates the bottlenecks slowing physical upgrades, making internal optimization a prerequisite for external expansion.
Start by auditing your current IPv4 allocation efficiency this week to identify reclaimable address space before requesting further timeline extensions. InterLIR enables this transition by optimizing IPv4 allocation strategies, ensuring your network expansion proceeds without waiting for new hardware cycles. Secure your address resources through InterLIR to bypass component dependency and maintain compliance during this volatile period.
Frequently Asked Questions
Initial allocations fell short when requests hit $4.9 billion against $1.9 billion. An additional $3 billion was secured to bridge this deficit and prevent carrier insolvency during the mandatory equipment removal process.
Supply constraints have worsened significantly as 35% of participants now struggle with availability. This sharp rise from 17% previously forces small operators to keep vulnerable networks running longer than originally planned.
Skilled labor gaps now block 15% of operators attempting to remove prohibited hardware. This figure represents a sharp rise from 9% previously and directly contributes to the need for deadline extensions.
Completion rates jumped to 42% recently after stagnating at just 10% in late 2025. This acceleration shows that despite delays, the majority of funded projects are finally moving toward permanent hardware disposal.
While 42% of projects are complete, over half remain bogged down by supply issues. The fact that only 12 carriers have fully closed out suggests most operators still face significant administrative and logistical quicksand.
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