Cutting Open RAN Funds Hurts U.S. Innovation and Helps China

Congress is on the verge of hamstringing a key tool in the fight against Chinese tech dominance. Today, Chinese companies, such as Huawei and ZTE, offer full-stack radio-access gear at basement prices, using global scale and unfair government policies to lock in carriers to unsecure equipment and steer emerging standards in Beijing’s favor.

To counter this threat, technology companies are developing “Open Radio Access Network” (Open RAN) concepts that encourage interoperable interfaces for each RAN component so that mobile networks need not be beholden to any one RAN provider. In an Open RAN framework radios, base-band units, and software can mix and match across vendors—cutting costs, boosting innovation, and diluting single-supplier security risk. But Open RAN also presents technical challenges.

The United States has been a leader in pushing the frontier of networking components and capabilities, including a $1.5 billion investment to create the Public Wireless Supply Chain Innovation Fund as part of the Chips and Science Act of 2022. The first two rounds have already obligated $550 million across 35 projects, building U.S. testbeds and prototypes. Round 3 drew more than 90 proposals and could award up to $450 million.

But now, just as funding is rolling out to innovators, Congress is seeking to cut it off. A section of the Senate Commerce portion of the One Big Beautiful Bill Act cuts all the remaining funds for Open RAN innovation. This move would make the United States less innovative and less competitive in the fight against Chinese dominance over wireless communications. As Congress votes on amendments to the full bill it should remove this section of the Commerce Committee’s title to fully fund the Public Wireless Supply Chain Innovation Fund, not cut it off.

Continue Reading