Concern on Draft National Security FCC NPRM Builds With NTCA Questions
NTCA is the latest group to express concerns about an NPRM teed up for a vote at the April 17 commissioners’ meeting proposing to bar use of money in any USF program to buy equipment or services from companies that “pose a national security threat” to U.S. communications networks or the communications supply chain (see 1803260037). The draft NPRM cites a 2012 report by the House Intelligence Committee raising concerns about Chinese equipment makers Huawei and ZTE.
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So far, the FCC hasn’t posted any comments or ex parte filings on the item in new docket 18-89. An official is aware of the concerns expressed by small carriers and the agency will “keep that in mind” as it acts. A second official said there has been little activity on the NPRM so far on the eighth floor at the FCC and this week looks to be quiet. The FCC didn't comment.
“NTCA is not hearing anything more beyond” the proposal, said Michael Romano, senior vice president-industry affairs: “Our primary concern is simply to get a better sense of the extent to which proposals and questions in the notice could affect any member operations. NTCA is committed to working with the FCC through this process to ensure that concerns about security of the nation’s networks are appropriately addressed.”
A lawyer who represents small carriers is trying to get a handle on the NPRM. “If I understand it correctly, a small rural carrier using USF has a problem, but a big carrier with no USF can use Huawei or any other equipment, at least as of today,” the lawyer said. “This kind of sounds like locking only one door on your house.” A second lawyer who represents small carriers said the NPRM is already “pretty opened ended” so major changes are unlikely before the vote. Carri Bennet, general counsel to the Rural Wireless Association, said last week (see 1803260037) that many members use equipment from the Chinese suppliers because it works well and is readily available. The Competitive Carriers Association didn’t comment.
“Ironically, it will be limited to some rural areas, with small providers, where the impact will be to raise costs in the areas where the digital divide is already most acute,” said Blair Levin, analyst at New Street Research.
The draft NPRM asks open-ended questions about the types of equipment that might be subject to a ban. “Which components or services are most prone to supply chain vulnerabilities?” the draft asks. “Is there any reason to exempt certain categories of equipment or services from the scope of the rule? For example, should the rule cover all software or only software that manages the communications network or devices used on the network? Additionally, are there existing processes or methods, such as supply chain risk management processes, through which equipment can be certified not to present a supply chain risk, thereby allowing that equipment to be exempted from coverage under our proposed rule?”