FCC Approves National Security NPRM 5-0, Asks Questions Beyond Cutting USF Support

The FCC approved 5-0 an NPRM that proposes 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, as expected (see 1804110032). Commissioners said the NPRM was expanded while on the eighth floor to ask additional questions, including on what the FCC could do beyond the USF. Small carriers, especially members of the Rural Wireless Association, expressed concerns because many use devices and equipment provided by Chinese suppliers Huawei and ZTE. For other ZTE news Tuesday: 1804170018.

“For years, U.S. government officials have expressed concern about the national security threats posed by certain foreign communications equipment providers in the communications supply chain,” said FCC Chairman Ajit Pai. “The FCC doesn’t have the authority or capacity to solve this problem alone, but it does have a role to play.” The agency is “committed” to protecting national security, Pai later told reporters.

The NPRM was expanded to ask about additional actions the commission could take beyond cutting off USF support, said Commissioner Brendan Carr. He asked to “put even more remedies on the table,” he said. The FCC also seeks “additional information that will allow us to more fully assess the scope and nature of any threats and thus the costs and benefits of our decisions,” he said. Carr said cutting off USF support would be a “very reasonable” step.

Commissioner Mike O’Rielly said he has questions about the proposed approach. “While I firmly believe that there are significant potential threats to our nation’s communications networks from foreign suppliers, I do have some concerns regarding the proposed solution to cut off USF support under select circumstances,” he said. The NPRM “is the correct vehicle for discussing and resolving such debates,” he said.

Commissioner Jessica Rosenworcel voted yes but urged the regulator to investigate a Department of Homeland Security report that foreign governments are using cellsite simulators, known as StingRays, in Washington (see 1804040051). “These surveillance tools can transform cellphones into real-time tracking devices by mimicking legitimate cell towers and some may even have the technical capability to record the content of calls,” Rosenworcel said. “If these reports are true, someone needs to explain how foreign actors are transmitting over our airwaves.” The security of communications networks “is at stake right here, right now in Washington and this agency owes the public more than silence,” she said.

Commissioner Mignon Clyburn also voted yes, at what she later said will be her last meeting (see 1804170021). She expressed concerns about the implications for small carriers. “We must minimize national security threats, while [we] avoid putting undue burdens on small and rural communications service providers, and those living in high-cost areas where connectivity is either lacking or needs improvement,” she said.

“Many small carriers serve the most costly, remote and hard-to-reach areas, and provide low-income Americans with affordable device options,” said Steve Berry, president of the Competitive Carriers Association. “Any proposed solution should be cognizant of significant economic hardships on many operators, but also … must consider rural and low-income consumers’ choice of viable, affordable devices, in an already very limited market.”

Carr and O’Rielly said after the meeting they will watch that issue closely as comments come in. The record has been “very light” and the carrier questions haven’t been “fleshed out in actual filings,” Carr said. “We’ll just see where it goes when the comments are submitted,” O’Rielly said, saying he didn’t want to comment on any particular country or company. “There are a number of foreign nations that do not have the United States’ best interest at heart,” he said. Both Republicans said they're aware of cellsite simulator issue raised by Rosenworcel and are gathering information.

FCC Meeting Notebook

FCC members unanimously approved an NPRM seeking comment on streamlining authorization of small satellites. Existing agency rules weren’t written with modern small sats in mind, said International Bureau staff at Tuesday’s meeting. The proposal seeks comment on making it easier to apply for authorization for small satellites that have short “on-orbit lifetimes,” can share spectrum and won’t create much orbital debris, the IB said. “These procedures would be less burdensome while still preserving FCC interests in issues like efficient spectrum use and limiting orbital debris,” Pai said. The NPRM also seeks comment on revising the application fees for small sats using the streamlined plan, and asks questions about small sat spectrum use, the bureau said. Rosenworcel welcomes the proposal, saying the FCC should be more involved in orbital debris and growth in the commercial space industry. It’s “a glaring omission” the agency isn’t involved with the work of the National Space Council, Rosenworcel said. “Through our oversight of the airwaves and licensing of satellite services, we have an important role ensuring the viability of space for future generations.” Rosenworcel said the FCC should develop “a comprehensive policy to mitigate collision risks” from orbital debris. The NPRM mentions debris and seeks comment on a proposal that smallsat applicants must certify their satellites won't release operational debris (see 1803300014). Secretary of Commerce Wilbur Ross and NTIA Administrator David Redl issued a joint news release. “The federal government needs to do all it can to reduce barriers to innovation in the development and deployment of these new satellites, which can play an important role in advancing U.S. leadership in space initiatives,” Redl said. “The Department of Commerce is doing its part to streamline its licensing process for small satellites by working with the federal agencies and the FCC to make space accessible for non-traditional and new operators inside and outside government while reducing the regulations on federal agencies seeking certifications for small satellites,” Ross said. Commerce has prioritized deregulation of and fostering of commercial space efforts (see 1804050010).

Commissioners voted 5-0 to approve an NPRM seeking comment on eliminating rules requiring cable carriers to keep channel listings in their main offices, as expected (see 1804130038). It's “bizarre” that the rule remains on the books, when numerous other ways are available to find out channel information, Chairman Ajit Pai said. Pai and Media Bureau staff said it’s not clear why the rule was created in 1972. The FCC “didn’t actually explain back then why it thought that these regulations were necessary,” Pai said. Commissioner Mignon Clyburn expressed concern that the item also seeks comment on removing channel lineup information from online public inspection files. “Consumers should have access to more information, not less, and collecting information about entities we regulate then sharing it with the public is a core function of the agency,” Clyburn said.

Pai said he hasn’t made any “firm” decision to add extra members representing local governments to the Broadband Deployment Advisory Committee, after two local resignations from the group. Last week, Pai appointed David Young, fiber infrastructure and right-of-way manager in Lincoln, Nebraska, to replace Sam Liccardo, mayor of San Jose (see 1804090013). Pai is “very grateful” to remaining BDAC members for their hard work. Pai also said he’s not sure whether the advisory group will continue after its reports are complete, as several members expect (see 1804030066). “That’s one of the things we’re going to have to explore,” he said.

Also at Tuesday's meeting, for votes on broadband business and rural calling: 1804170025; and for auctions that could lead to spectrum for 5G deployments: 1804170036.