The US Federal Communications Commission said an auction of wireless mid-band spectrum raised more than $3.5 billion, which will largely be used to fund the replacement of Chinese telecom equipment. Up to $3.3 billion of the auction's proceeds will cover funds borrowed to support the FCC's "Rip and Replace" program to purge Huawei, ZTE, and other Chinese gear from wireless networks and support other programs.

The agency previously estimated that removing the Chinese equipment would cost $4.98 billion, but Congress had only approved $1.9 billion before deciding to hold the auction. The FCC reported last week that 42 percent of federal funding recipients have completed replacement and disposal of all Chinese equipment, citing delays due to permitting, supply chain issues, labor shortages, and severe weather.

Congress approved the funding and authorized the one-time spectrum auction by the FCC for advanced 5G-grade wireless spectrum in the band known as AWS-3 to help meet rising spectrum demands of wireless consumers. The FCC previously auctioned AWS-3 spectrum licenses for commercial use in 2014, but some winning bidders defaulted on their payment obligations and approximately 200 licenses were returned to the FCC's inventory.

Washington has aggressively urged US allies to purge Huawei and other Chinese gear from their wireless networks. In 2019, Congress instructed the FCC to require US telecom carriers that receive federal subsidies to purge their networks of Chinese telecommunications equipment. The FCC last auctioned spectrum in 2022, and in 2023 it lost broad authority from Congress for wireless sales.