Senate Commerce Members Focus on Cybersecurity Concerns During 5G Hearing

A Wednesday Senate Commerce Committee hearing on 5G was dominated by lawmakers' concerns about the national security threat from China in its race against the U.S. President Donald Trump's administration is believed to be considering actions aimed at boosting U.S. competitiveness in 5G and other technologies, communications lobbyists told us. Trump barely mentioned tech during Tuesday night's State of the Union, matching officials' expectations (see 1901180032). Concerns about 5G security were also the focus of a Center for Strategic and International Studies event (see 1902060056).

Trump's potential 5G executive order would be aimed at encouraging carriers and other communications sector companies to enter the 5G race or to amplify deployment efforts, lobbyists said. The EO may diverge heavily from the much-maligned proposal last year for a government-funded national 5G network contained in a leaked draft National Security Council official memo (see 1801290034). It's instead likely to draw from feedback the administration gathered at the White House's September 5G summit (see 1809280054). The White House didn't comment.

Senate Commerce Chairman Roger Wicker, R-Miss., Wednesday told reporters the White House “ought to look at” issuing a 5G EO aimed at mitigating security concerns about the presence of Chinese telecom equipment manufacturers Huawei and ZTE and other suspected bad actors. Congress should also weigh in, he said: This is “a very serious security issue and we want to get to the real truth” about the threat bad actors pose to 5G cybersecurity.

Senate Commerce ranking member Maria Cantwell, D-Wash., led off what morphed into a bipartisan discussion about 5G security. "I'm all in for" the technology, but "we need to make sure we're not blind to some of the very important policy issues" involved, she said. The hearing topic had been expected (see 1902050046), but not as the dominant focus.

Cantwell believes Congress should ensure cybersecurity of U.S.-based 5G networks and the associated supply chain. “We can't tolerate a leaky valve or a back door into these networks,” Cantwell said. Congress' role should include a “serious conversation about what level, if any, of foreign components we are going to let in” for use in 5G networks. The FCC should use existing authority on telecom sector cybersecurity to ensure 5G networks' safety, Cantwell said.

'Broad' Problem

It's "better to err on the side of safety, as 5G will be the backbone of communications in the future," said U.S.-China Economic and Security Review Commission member Michael Wessel. "We cannot afford to ignore the actions and activities that China has engaged in with regard to predatory and protectionist policies, what their public pronouncements have identified are their plans and what actions they have engaged in in the cyber realm."

Wicker later pressed Wessel on whether “the horse was already out of the barn” on Huawei/ZTE penetration into the 5G component supply chain. Wessel said that Huawei holds 9 percent of essential patents for 5G equipment, but “risk management strategies” can further mitigate the threat. The Trump administration is paying attention to the issue, but “much more needs to be done” because it is "such a broad and deep problem," he said.

Senate Communications Subcommittee ranking member Brian Schatz, D-Hawaii, emphasized cybersecurity issues he and others invoked are “a little bigger” than concerns about the U.S. telecom sector maintaining dominance. “We can live with” other countries increasing their share, but a company that poses a cybersecurity risk needs to have its commercial share effective reduced to zero, he said. Huawei and others have committed to protecting consumers' data in foreign markets but they're far more likely to follow Chinese government directives, Wessel said.

Wicker and Sens. Marsha Blackburn. R-Tenn., and Tom Udall, D-N.M., are concerned some rural carriers are using Huawei and ZTE equipment because of lower costs. There is a “reason China is giving” away those components at “cut-rate” prices, Wicker said. Chinese companies are “giving it away … because they want our data,” Blackburn said.

Udall pressed Competitive Carriers Association President Steve Berry about the rural carriers' use of Chinese technology. It's a “tough issue” for rural carriers on a “shoestring” budget, Berry said. The transition to 5G could be an opportunity for those carriers to “cycle” into more “acceptable” security practices, he said.

Legislative Interest

Berry and others encouraged 5G-friendly legislation, including the to-be-refiled Advancing Innovation and Reinvigorating Widespread Access to Viable Electromagnetic Spectrum (Airwaves) Act. The bill aims to identify spectrum for unlicensed use and free up mid-band spectrum for wireless industry purchase via an FCC auction (see 1802070054).

House Commerce Committee Vice Chairwoman Yvette Clarke, D-N.Y., and Rep. John Curtis, R-Utah, touted the Airwaves Act Wednesday during a Hill event. CTIA Executive Vice President Brad Gillen also endorsed “swift” reintroduction of the Airwaves Act during the Senate Commerce hearing.

Senate Communications Subcommittee Chairman John Thune, R-S.D., noted he's evaluating how to revise his Streamlining the Rapid Evolution and Modernization of Leading-Edge Infrastructure Necessary to Enhance (Streamline) Small Cell Deployment Act. The bill, filed last Congress, aims to implement a “reasonable process and timeframe guidelines” for state and local small-cell consideration (see 1806290063).

Sen. Ed Markey, D-Mass., touted his Government Spectrum Valuation Act. It would require the FCC, NTIA and OMB to jointly determine the value of each agency's spectrum (see 1811140057).

Trump Speech

Trump made a generic call Tuesday for Congress to “unite for a great rebuilding of America's crumbling infrastructure.”

Congress “is eager to pass an infrastructure bill, and I am eager to work with you on legislation to deliver new and important infrastructure investment, including investments in the cutting-edge industries of the future,” Trump said. “This is a necessity.” Trump didn't mention broadband or other telecom infrastructure priorities during his speech last year either, but sought a bill “that generates at least $1.5 trillion for the new infrastructure investment” that relied heavily on public-private partnerships (see 1801310071).

Deputy U.S. Chief Technology Officer Michael Kratsios and the White House emphasized that Trump's reference to “industries of the future” included 5G, artificial intelligence and quantum computing. Trump's commitment “will ensure that these technologies serve to benefit the American people and that the American innovation ecosystem remains the envy of the world for generations to come,” Kratsios said. A White House fact sheet said it's important to upgrade rural broadband.

Senate Commerce quickly set a Feb. 13 hearing on infrastructure issues that will include American Cable Association President Matthew Polka. It will start at about 10:15 a.m. in G50 Dirksen, immediately after a committee executive session. The hearing will "focus on opportunities for infrastructure improvement, including federal funding, financing programs, and permitting and regulatory streamlining," the committee said. A follow-up Senate Commerce hearing on broadband infrastructure issues is possible later, lobbyists said.