Legislation Approved to Allocate $750 Million to U.S. Open RAN 5G Efforts
Legislation Approved to Allocate $750 Million to U.S. Open RAN 5G Efforts
November 19, 2020
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Last week, the House unanimously passed a bipartisan bill allocating $750 million in funding, over the next 10 years, to aid in U.S. 5G efforts and Open Radio Access Network (RAN) development. The goal is to continue building and advancing Open RAN 5G wireless networks in the U.S. and provide competitive, alternative solutions to those of foreign competitors.
This new bill is part of the USA Telecommunications Act, a federal grant program that was implemented earlier this year. This newly established grant program is led by the Department of Commerce’s National Telecommunications and Information Administration (NTIA) and is designed to provide funds and support for domestic deployment and development of Open RAN 5G wireless networks.
“We must support alternatives to companies like Huawei and ZTE,” said Frank Pallone (D-NJ), Energy and Commerce Committee Chairman, a primary sponsor of the bill. “Today most network equipment is produced by a handful of companies that provide a soup to nut solution, locking our networks into one single vendor at a time. That makes it hard for new competitors to break into the market, and currently there are no American vendors for the network equipment that fuels our wireless economy.”
According to Pallone, this bill is vital for growing and enhancing network equipment in the domestic market as well as creating a larger, more competitive telecommunications industry.