National Security NPRM Expected to Get 5-0 Vote Despite Small Carrier Concerns
Dissents from the two FCC Democrats appear unlikely when commissioners vote Tuesday on an NPRM 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. Mignon Clyburn and Jessica Rosenworcel appear unlikely to dissent, despite concerns raised by small carriers, industry and agency officials said.
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Weighing against dissents is that the record is thin, with only a Rural Wireless Association filing in docket 18-89 raising small carrier objections, the officials said. The item is an initial step toward rules, one noted. Clyburn, an advocate for Tier 3 carriers, in a March 29 speech at a Competitive Carriers Association conference, (see 1803290043) didn’t mention that NPRM.
CCA and NTCA raised questions but not in filings (see 1804030058 and 1804020054). RWA said many Tier 3 carriers look to Chinese companies Huawei and ZTE for devices at reasonable prices to serve rural markets (see 1803260037). "RWA is concerned that, if adopted, the rule as proposed would not only fail to effectively protect national security; but also shut down broadband services and deter future deployment in many parts of rural America," the group said. There have been only four filings in the new docket, including the notice opening the proceeding.
“Public safety and homeland security items are almost always unanimous votes," noted former Commissioner Robert McDowell. He said dissents would be "puzzling."
“Let’s see what the comments from all stakeholders look like,” said a lawyer who represents small wireless carriers. “Disallowing USF investment in Huawei or ZTE equipment doesn’t increase our nation’s cybersecurity one iota. We need to learn what this is really about.”
The NPRM proposes some strong measures, said Roger Entner, analyst at Recon Analytics: “Barring companies from being a recipient of USF funding is a quite dramatic step for a variety of reasons. As the small carriers point out, it will make their position considerably more difficult since Huawei is considerably cheaper and offers better service than any of the available alternatives. USF funding will have less bang for the buck.” Huawei and ZTE potentially could challenge rules in court and question "what kind of evidence will be presented that led to them being designated as companies that ‘pose a national security threat,’" Entner said. “The security flaws in all Huawei equipment are not as bad as you read in the papers," said a former senior FCC official. "They’re much worse.”