More than $1 billion u.S. politicians propose legislation to fund Western companies to challenge Huawei’s 5G dominance

A group of U.S. senators has proposed a new bill that would put the government in for more than $1 billion to develop 5G devices in the West to challenge Huawei’s technological dominance. In a statement, Senator Mark Warner, a co-sponsor of the bill, outlined the main objectives of the proposed Strategic Alliance Telecommunications Act. The country aims to “re-establish U.S. and Western leadership by encouraging us to compete with Huawei for its software advantages”.

More than $1 billion u.S. politicians propose legislation to fund Western companies to challenge Huawei's 5G dominance

He claimed that Huawei had “received a lot of subsidies from the Chinese government”, which helped it become a leader in commercial 5G.

The bill recommends that the Federal Communications Commission ,500, the U.S. regulator, allocate at least $750 million, or 5 percent of annual spectrum auction revenue, to create an O-RAN research and development fund that will drive a shift to open-end architecture and software-based technology.

In addition, it hopes to secure a 10-year $500 million grant to work with overseas partners to “accelerate the global application of trusted and security devices”.

Other proposals include a transition plan for operators to purchase new O-RAN-compatible equipment, increased U.S. influence in setting international standards, and expanded market opportunities for suppliers by coordinating new commercial spectrum allocations with partners as much as possible.

“Every month when the U.S. does nothing, Huawei is on track to become the cheapest, fastest and most popular global supplier of 5G, while U.S. and Western companies and workers lose market share and jobs. “Addressing the complex security and competitiveness challenges posed by Chinese telecommunications companies is a top priority for Congress. “