The Commerce Department proposed new procedures for reviewing transactions, including imports, that involve information and communications technology and services seen as a potential national security threat, it said Tuesday. The proposed rules are aimed at implementing President Donald Trump's May executive order, which directed Commerce to issue regulations to bar some foreign companies' technology from U.S. networks. The order was seen potentially targeting Chinese's Huawei and ZTE (see 1905150066). Commerce proposes "a case-by-case, fact-specific approach to determine those transactions that meet the requirements" in the EO. Parties subject to it will be expected to "maintain records related to such transaction in a manner consistent with the recordkeeping practices used in their ordinary course of business for such a transaction," Commerce says in Wednesday's Federal Register. Transactions are "any acquisition, importation, transfer, installation, dealing in, or use of any information and communications technology or service." Transactions subject to the reviews are any that involve people or property under U.S. jurisdiction, plus "any property in which any foreign country or a national thereof has an interest," it says. Transactions "initiated, pending, or completed" after May 15 would be subject to review. Comments are due Dec. 27 in docket DOC-2019-0005 via Regulations.gov. The Telecommunications Industry Association “has long maintained that supply chain risk management is best addressed by public-private partnerships and consensus-based, industry-driven standards, but there is a place for targeted and careful government intervention,” said CEO David Stehlin. “Today’s rules exemplify this approach and, through the invitation of comments from industry, represent a clear step forward towards a public-private effort." USTelecom is glad Commerce accepted “our recommendation to seek industry comment before establishing interim final rules, a process that should reduce the risk of unintended consequences,” said Senior Vice President-Cybersecurity Robert Mayer. “We are especially encouraged the Department has already adopted a process to determine whether a transaction meets the requirements.” The Information Technology Industry Council appreciates Commerce's “wise decision to issue proposed rather than final rules to maximize the ability of the Department to account for crucial industry feedback,” said CEO Jason Oxman. “The tech industry will continue to engage with the White House, Commerce, and other stakeholders to ensure this process furthers important national security imperatives while allowing U.S. innovation to thrive as it is finalized.”

An NPRM to modernize telecom network unbundling and resale requirements seeks "comment more generally on the impact of the Commission policy changes, including the recently concluded USTelecom forbearance proceeding, on the voice and broadband marketplace," the FCC said Tuesday in the Daily Digest for docket 19-308.

Report ISPs are deploying broadband to all Americans "in a reasonable and timely fashion," industry told the FCC in comments posted through Monday in docket 19-285 on a notice of inquiry for the 15th annual Communications Act Section 706 report (see 1910230065). Critics said the last report overstated broadband deployment (see 1905290017).

Commissioners voted 3-2 along party lines to issue an NPRM in FCC docket 19-308 on eliminating regulations on certain unbundling and resale requirements for ILECs to make parts of their facilities-based networks available to CLECs that want to use the unbundled network elements (UNEs) to sell voice and broadband services (see 1911190009). Jessica Rosenworcel and Geoffrey Starks dissented. The new rules would eliminate most requirements for ILECs to unbundle and resell certain voice-grade and DSL loops except for residential use in certain rural areas. The NPRM proposes a three-year transition.

The FCC approved national security supply chain rules Friday, barring equipment from Chinese vendors Huawei and ZTE from networks funded by the USF and establishing rules that could block other providers (see 1910290054). Commissioner Mike O’Rielly voted yes, with reservations. Commissioner Jessica Rosenworcel said the FCC needs to do more and should have acted more quickly. Commissioner Geoffrey Starks said smaller carriers using USF should be reimbursed for ripping Chinese gear out of their networks. Officials acknowledged the item got late changes sought by commissioners (see 1911200030).

The Dec. 12 FCC agenda will include an NPRM on designating 988 as a national three-digit suicide prevention and mental health crisis hotline. A draft NPRM announced Tuesday tees up several issues, including network configurations, Chairman Ajit Pai said after a National Council for Behavioral Health event. Asked how soon the commissioners might have a draft order before them, he said he couldn't guess how long it might take to assess what comes up in the public comments, but 988 "is a special priority for me." An item on 5.9 GHz band sharing is also expected for December (see 1911190066).

Delay plans to remove CLECs' access to an ILEC's unbundled network elements (UNEs) at regulated prices until more-accurate broadband maps can pinpoint where broadband competition actually exists, a group representing CLECs told the FCC. "You need new maps before you can have new rules,” Incompas CEO Chip Pickering told us. He visited with FCC officials in recent weeks to ask them to withdraw the draft NPRM in docket 19-308 that commissioners are expected to vote on Friday (see 1911150016).

Reed Smith hires from Arent Fox Sarah Bruno as partner-global intellectual property, tech and data, and Casey Perrino as associate-data privacy and security counseling ... Subject Matter adds Bill Ghent, ex-The Lugar-Hellmann Group, to government relations team, including tech focus ... K2 Intelligence names former Rep. Dan Donovan, R-N.Y., senior adviser.

USTelecom and Incompas held separate meetings last week with FCC officials about a draft NPRM in docket 19-308 for updating unbundling and resale rules for competitive LEC access to parts of an ILEC's facilities-based network at regulated prices. USTelecom CEO Jonathan Spalter spoke with FCC Chairman Ajit Pai Tuesday, plus Commissioner Geoffrey Starks, supporting the NPRM and "ongoing efforts to modernize outdated regulations," said a filing posted Friday. Incompas CEO Chip Pickering with Granite Telecommunications, Sonic and other member companies met Tuesday with Pai and each of the commissioners, plus Wireline Bureau staff, said a Friday posting opposing the NPRM. "Customers are clamoring for more competition," Incompas said. Commissioners are scheduled to vote Friday (see 1910300010).

Alaska Gov. Michael Dunleavy sought clarification of an FCC rule on rural telehealth, among petitions for reconsiderations posted in docket 17-310 Wednesday. Dunleavy said the new mechanisms for determining cost recovery rates "don't sufficiently acknowledge the logistical and economic challenges to delivering service throughout rural Alaska, nor does it recognize the dramatic differences between our regions and communities." Rule changes would lead to systemic underfunding of telecom needed to deliver healthcare services to hard-to-reach communities, the Republican said. Alaska Communications asked to promptly address all outstanding matters from the telehealth rulemaking. It said the FCC is better positioned than the Universal Service Administrative Co. to timely resolve questions about rural rate determinations. USTelecom has concerns about how the FCC will implement a new median rural rate framework, citing material errors or omissions, and "Alaska requires a different approach to setting a rural rate that is unique." The median rate calculation risks "defunding telehealth services for the neediest rural Alaskans," it said. The Schools, Health & Libraries Broadband Coalition said USAC may have overstated nonrural telehealth expenditures, and the FCC should reconsider major policy changes based on such data. It also warned against deprioritizing funding for nonrural telehealth consortium participants. The North Carolina Telehealth Network Association and Southern Ohio Health Network asked the FCC to modify the definition of rural for the purposes of the program's eligibility.