WASHINGTON, May 2 (Reuters) - The Federal Communications

Commission (FCC) said on Thursday nearly 40% of U.S. telecom

companies getting federal support need additional government

funding to remove equipment made by Chinese telecoms firms

Huawei and ZTE (Shenzhen:000063) from American wireless networks to

address security risks.

The FCC said removing the equipment is estimated to cost

$4.98 billion but Congress has only approved $1.9 billion for

the "rip and replace" program.

FCC Chair Jessica Rosenworcel on Thursday called on Congress

for urgent additional funding, warning some carriers in the

reimbursement program have told the FCC recently "that they

foresee significant consequences that could result from the lack

of full funding, including having to shut down their networks."

The White House in October sought another $3.1 billion to

further fund removal of equipment made by Chinese telecoms

giants but Congress has not acted.

In 2019, Congress told the FCC to require U.S. telecoms

carriers that receive federal subsidies to purge their networks

of Chinese telecoms equipment.

Under the law, the FCC is first allocating funding to

applicants with two million or fewer customers and they are

receiving just 39.5% of replacement costs.

After getting initial partial funding, telecoms companies

face deadlines to remove, replace, and dispose all Huawei and

ZTE (Shenzhen:000063) communications equipment and services ranging from May 29,

to Feb. 4, 2025, the FCC said.

The FCC said because telecom providers in the program "serve

many rural and remote areas of the country where they may be the

only mobile broadband service provider, a shutdown of all or

part of their networks could eliminate the only provider in

some regions."

Rosenworcel added that a failure by carriers to "fully

remove, replace, and dispose of covered equipment and services

would raise national security concerns by leaving insecure

equipment and services in our networks."