Lawmakers Resume Talks on Telecom Supply Chain Security Legislation

“We’re floating ideas and are in touch” with Sen. Mike Lee, R-Utah, on how to move forward on reaching a consensus between the House-passed Secure and Trusted Communications Networks Act (HR-4998) and the similar Senate Commerce-cleared U.S. 5G Leadership Act (S-1625), Wicker told us. Lee objected in December when Wicker attempted to pass HR-4998 via unanimous consent. Capitol Hill leaders had aimed to enact the bill in tandem (see 1912120071) with the Pallone-Thune Telephone Robocall Abuse Criminal Enforcement and Deterrence (Traced) Act (S-151) and the Broadband Deployment Accuracy and Technological Availability (Broadband Data) Act broadband mapping legislative package (HR-4229).

“We’re hopeful we’re close” to a deal with Lee, who after objecting to HR-4998 unsuccessfully tried to advance S-1625 via UC, Wicker said. Congress needs to act quickly to address the “problem” of the presence in U.S. networks of equipment from Chinese manufacturers Huawei and ZTE. S-1625 sets a limit of $700 million in equipment removal grants and specifies the money would come from spectrum auction proceeds. HR-4998 would allocate at least $1 billion in funding but allows lawmakers to expand that amount. That bill doesn’t delineate a clear funding source, which Lee said was his main concern.

Lee’s office didn’t comment.

House Interest

“We’re going to have some discussions this week on next best steps” to reach an agreement that will address Lee’s concerns, said House Commerce Committee ranking member Greg Walden, R-Ore. He and Chairman Frank Pallone, D-N.J., are HR-4998's lead sponsors.

“We had a pretty good product” in HR-4998, “but there was always an ongoing discussion on the funding piece, so I’m not surprised” it remains a stumbling block, Walden said. “The key is to find a solution here where we can make these networks secure and help small providers replace” suspect equipment, he said: “Recent events” like the rising threat of Iran-led cyberattacks “should lead us to value [network security] now more than ever.”

"The Senate's going to be a little preoccupied" given President Donald Trump's impending impeachment trial, "but we hope eventually" to reach an agreement to advance HR-4998, said House Communications Subcommittee Chairman Mike Doyle, D-Pa. "I'm not going to spend much time trying to predict" how the Senate will proceed on either that bill or S-1625, but supply chain security remains an important priority.

The Competitive Carriers Association and other communications sector groups are closely monitoring talks. Several lobbyists noted HR-4998 had unanimous bipartisan support in the House, as did S-1625 during a July Senate Commerce markup (see 1907240061).

The Senate’s failure to move HR-4998 via UC removed the fastest legislative avenue for funding equipment removal and replacement, but CCA is “optimistic that this is one of the items” Congress can advance in 2020, Senior Vice President-Legislative Affairs Tim Donovan told us. “One thing that has remained constant is that there is strong bipartisan support for addressing this issue and providing resources” to small U.S. providers that have suspect gear.

The challenge will now be finding “floor time” in the Senate to advance either HR-4998 or S-1625, since the chamber is consumed with other priorities, including the Trump impeachment trial, Donovan said. There are going to be “several instances” this year when the supply chain security issues that HR-4998 and S-1625 aim to address will be in the spotlight, including at the FCC, he said. National security supply chain rules barring Huawei and ZTE equipment from networks funded by the USF are taking effect (see 2001020027). Comments on initial designations of Huawei and ZTE as covered companies are due Feb. 3 in docket 19-352. A Further NPRM seeks comment on additional actions.

Other Issues

“This is going to continue to be a fascinating issue” to watch regardless of whether Congress is able to enact HR-4998 or S-1625 given the strong presence of Huawei and ZTE equipment on global networks, said American Enterprise Institute visiting fellow Shane Tews. “Huawei is providing this equipment to rest of the world and their stuff is really good” because of the Chinese government’s funding for 5G development. Some U.S. telecom executives are concerned “we’re going to get boxed in” and there are questions about whether a better approach might be to use software-defined networks to mitigate the surveillance threat posed by Huawei and ZTE gear, she said.

Huawei also faced pressure elsewhere on the Hill Wednesday. Sen. Tom Cotton, R-Ark., filed legislation aimed at barring the U.S. from sharing intelligence “with any country that permits operation within its national borders” of Huawei-produced 5G equipment. Cotton filed the bill ahead of an expected decision by the U.K. government on whether to allow Huawei equipment on the country’s 5G infrastructure. The U.S. “shouldn't be sharing valuable intelligence information with countries that allow an intelligence-gathering arm of the Chinese Communist Party to operate freely within their borders,” Cotton said. “I urge our allies around the world to carefully consider the consequences of dealing with Huawei to their national interests.”

The House passed S-2881 on a lopsided 413-3 vote. HR-2881 and Senate version S-893 would require the president develop a strategy for ensuring security of 5G networks and infrastructure (see 1903270065). The three lawmakers who voted against the measure were Reps. Justin Amash, I-Mich., Clay Higgins, R-La., and Thomas Massie, R-Ky.

Lawmakers cleared the other three 5G bills on voice votes. They were: H. Res. 575, the Promoting U.S. International Leadership in 5G Act (HR-3763) and the Promoting U.S. Wireless Leadership Act (HR-4500). H. Res. 575 would express the sense of the House that 5G development stakeholders should consider adhering to proposals adopted at the May Prague 5G Security Conference on a cooperative approach to security, with each nation free to develop its own policies (see 1905030052). HR-3763 would direct the secretary of state to provide assistance and technical expertise to enhance U.S. leadership at international standards-setting bodies that handle 5G and other telecom issues. HR-4500 would direct NTIA to encourage U.S. companies and others to participate in international standards-setting bodies (see 1905150066).