US Must Not Backslide on China, Says Carr as FCC OKs NPRM

The FCC approved 4-0 an NPRM proposing revised rules for a program to pay for the replacement of equipment from Huawei and ZTE in U.S. networks, as expected (see 2102110053), at the commissioners' meeting Wednesday. Acting Chairwoman Jessica Rosenworcel stressed that even more than the previous administration, she's emphasizing coordination with other parts of the federal government in her approach to supply chain risks. Commissioner Brendan Carr said the U.S. must stay tough on China.

The NPRM proposed changes to rules approved in late 2019 (see 1911220033) to align them with the combined FY 2021 appropriations and COVID-19 aid omnibus law (see 2012220061). It would reconcile differences between that law and the Secure and Trusted Communications Networks Act, approved in March (see 2003040056).

The NPRM proposes to raise the cap on eligibility for participation in the reimbursement program to providers of advanced communications services with 10 million or fewer customers, vs. 2 million under current rules. It seeks comment on a proposal to modify rules to let reimbursement program recipients use the funds to remove and replace equipment or services obtained on or before June 30, 2020.

“Any backsliding or softening of our approach to China will be a monumental mistake, leaving Americans less safe and our networks less secure,” Carr said. “Now is not the time for a return to the weak and timid approach to China that marked our approaches of the past.”

“The damage from recent supply chain attacks, like the SolarWinds software breach, demonstrates the need for a coordinated, multifaceted and strategic approach to protecting our networks from all threats,” Rosenworcel said: “I have already reached out to my peers in other parts of the federal government to help coordinate and advance our implementation of the law.” Rosenworcel said she spoke with top officials at NTIA, the Cybersecurity and Infrastructure Security Agency and the White House. Rosenworcel was critical in the past of the decision under the last administration not to include the FCC among the principal members of the Department of Homeland Security’s Information and Communications Technology Task Force (see 1903190055).

“If our communications networks are threatened, everything that we’ve come to value is threatened,” Carr said. “Our work to secure … networks certainly goes far beyond this supply chain proceeding, and that’s because the threats posed by Communist China do not end with Huawei or ZTE or any equipment supplier.” Multiple providers that still operate in the U.S. are owned or controlled by China, he said. “Their operations within our borders provide opportunity for … state actors to engage in malicious cyber activity, thus enabling economic espionage, as well as the disruption and misrouting of U.S. communications,” Carr said.

Carr said during a news conference that he's watching to see what stance President Joe Biden's administration takes on China. Members of the Senate Commerce Committee raised concerns during a confirmation hearing for Commerce Secretary nominee Gina Raimondo (see 2102030065), he noted. “I don’t have insight into the Biden administration on these issues,” he said, but the Trump administration “made just unprecedented progress in taking an appropriately strong approach to China.”

Commissioner Geoffrey Starks said Congress was right to recognize in the December law that it will cost an estimated $1.84 billion to remove and replace all covered equipment in U.S. networks. “Protecting America’s communications networks is a crucial step in protecting everything that we’ve come to value,” said Commissioner Nathan Simington.

Meeting Notebook

Commissioners voted 4-0 to approve an NPRM on curbing 911 fee diversion, as expected (see 2102160064). “It’s fitting that the first vote at my first meeting as acting chairwoman is this rulemaking to protect and strengthen our nation’s emergency number,” Rosenworcel said. Carr said the bipartisanship was a “good standard to set, and I’m sure one that we will undoubtedly continue to meet.” The FCC seeks nominations by March 19 for its new Ending 911 Fee Diversion Now Strike Force.

Lifeline rules will apply to the $3.2 billion emergency broadband benefit program, and the Universal Service Administrative Co. will administer the funds, officials said during the meeting. "This isn’t just a top priority for any individual commissioner,” Carr said. “I would go so far as to suggest it’s a top priority for the entire commission. Providers interested in participating in the emergency broadband benefit program should be able to offer services at the same time to avoid consumer confusion, Carr told reporters, answering our question. “That’s going to put the maximum strength behind our efforts to get people signed up and to publicize it, as opposed to a situation where you have some providers that can participate on month one and others that can participate on month three,” Carr said. “That would put the most clarity and also punch behind our public messaging efforts.” Scott Bergmann, CTIA senior vice president-regulatory affairs, said the wireless industry "stands ready to support the FCC’s efforts to quickly utilize" the EBB to keep low-income consumers connected, improve broadband maps, "protect national security, and ensure that state and local governments continue to maintain and enhance 911 services."

The FCC has a statutory deadline at year's end to start a 3.45-3.55 GHz auction and is preparing a new item for approval by commissioners, Rosenworcel said during a news conference following the meeting. “I hope to be able to share something with my colleagues about how we’ll proceed shortly.” She said the FCC is looking at “the best pathway” on further changes to 6 GHz rules. She noted that rules approved last year have been challenged in court (see 2102160082). Rosenworcel didn’t have an update on a proposed 2.5 GHz auction, after proposed rules were approved last month (see 2101130067). She noted spectrum sharing is important and that in her first week as acting chairwoman, she signed an agreement with NTIA and the National Science Foundation (see 2102030056). “I wanted to send a clear signal that we intended to work together on these matters,” she said.

Commissioners heard about progress on a second COVID-19 telehealth tranche. Over 70% of the first part’s funding was disbursed, said the Wireline Bureau. Carr said it helped address a pandemic spike in telehealth visits. Healthcare providers “deserve our gratitude, our prayers and every possible tool we can provide them to make their efforts a success,” said Rosenworcel.

Rosenworcel told reporters the commission is using “finely toothed combs and regulatory review” to assess winning bidders’ capabilities from the Rural Digital Opportunity Fund Phase I auction. “That is a process that is careful because we want to make sure if they are awarded these funds, they truly can deliver those services to the rural communities that stand to benefit,” Rosenworcel said. “We will, at the end of that process, assess how we proceed with the second phase.”

Rosenworcel said the FCC has a “slate” of upcoming broadcast items but couldn’t provide specifics when asked about possible items by journalists. After hesitating, Rosenworcel said she would have to get back to the reporter who asked: “I don’t have a list for you at this time.” She said the agency being down a member has “some impact” on its work, suggesting that may affect addressing “big ticket” broadcast items.