National Security NPRM Casts Wide Net; Concerns Mount on Any Chinese Equipment Maker Exit
The FCC broadened its focus in the national security NPRM, approved by commissioners Tuesday, beyond just the USF. Commissioner Brendan Carr discussed the change at the meeting (see 1804170038). And review of the text posted Wednesday shows a new paragraph. Rural Wireless Association General Counsel Carri Bennet said she appreciates the FCC’s change in focus, but RWA members are concerned about reports that Chinese equipment makers Huawei and ZTE could exit the U.S. market.
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The NPRM raises complicated questions, Bennet said in an interview. “If [the FCC is] trying to really resolve the cybersecurity issues and the threat to national security, they’re in a much better position by gathering this kind of information than they were by simply limiting it to the USF-funded parts of the network.”
The NPRM seeks comment “on other steps we should consider taking to the extent we identify companies that pose a national security threat to the integrity of communications networks or the communications supply chain. Should we consider actions targeted not only at the USF-funded equipment or services of those companies, but also non USF-funded equipment or services produced or provided by those companies that might pose the same or similar national security threats to the nation’s communications networks? Should we consider actions in addition or as an alternative to restricting the use of USF support?”
The NPRM asks whether there are “testing regimes, showings, or steps concerning the removal or prospective deployment of equipment” the FCC should consider. The FCC cites as justification an April 9 letter from Bennet in docket 18-89, saying the agency should consider rules that are “applicable to all communications networks in the United States” rather than communications networks funded in part through the USF.
Huawei is looking to potentially exit the U.S. market, executives indicated Tuesday at an analyst meeting. “There are many stories between China and the United States,” said Rotating Chairman Eric Xu. “Even if we spend the next 60 minutes, we won’t be able to complete the discussion. It’s certainly beyond me to clearly explain what’s going on between China and the U.S., or to drive resolution of these issues.”
Bennet said RWA members are concerned ZTE and Huawei will leave the U.S. market and there won’t be ongoing technical support for equipment already in use by carriers. The FCC will likely find out as it looks more deeply that a lot of Chinese-made equipment is in the U.S. even if it was sold by a non-Chinese company, she said. “The FCC doesn’t know what it doesn’t know,” she said. “This proceeding will bring in a lot of information and will educate a lot of people about what’s going on out there.”
“If this is really a threat, then it should be addressed by the Department of Homeland Security,” said a lawyer who represents smaller carriers. “Hopefully, this item will focus on carrier best practices and independent testing, which would actually increase our nation’s security, rather than removing a small amount of Chinese equipment from our infrastructure, which will not.” The Competitive Carriers Association and NTCA declined to comment Wednesday.