Do More on Network Security, Starks Says; Local Officials Worry on Other FCC Overreach

PROVIDENCE, R.I. -- FCC Commissioner Geoffrey Starks told the Competitive Carriers Association he met with CCA members before a keynote Tuesday to discuss security of network equipment from Huawei and other Chinese equipment makers (see 1909170023). Starks warned gear that isn’t secure will likely have to be removed from networks. Commissioner Brendan Carr said he hasn’t decided whether issues raised in a public notice Friday (see 1909160018) will be his next focus on wireless infrastructure.

“The two things that I heard most distinctly were the need for certainty and the need for us in the federal government to drive the solution,” Starks said of the meeting with CCA executives. “Folks are not entitled to a certain outcome, but clearly it is imperative that we have your input.” Security is a “national problem,” he said. “It requires a national solution.”

Starks hosted a workshop in June (see 1906270039). The U.S. might be able to address security by quarantining some equipment in parts of the network, Starks said now. It's more likely all equipment from “suspect manufacturers” will have to be removed, he said. "Nokia and Ericsson have said that they are willing to create products and financing options geared toward smaller carriers that need to replace Chinese equipment,” he said: “They also claim that they have handled similar replacement efforts with minimal customer disruption.”

Starks said Congress should fund removal. “We shouldn’t expect small carriers, who acted legally and in good faith, to replace their insecure equipment on their own,” he said. “Many of the carriers who purchased this equipment operate on tight margins in rural areas and may not be able to cover the costs of replacement without financial support.” Smaller carriers did no wrong in buying Huawei gear, Starks stressed. Some providers “bought this equipment, often a decade or more ago, because it was far less expensive than other options, and because Huawei was willing to work with them to create customized networks,” he said: “These purchases did not violate any rules or laws.”

“The FCC won’t be able to do it on its own,” Starks told us. “We are battling on a number of fronts.” The agency must address its supply chain NPRM "as expeditiously as possible,” he said. Starks mentioned the recent Senate letter asking the FCC to open a proceeding to review revoking Communications Act Section 214 certifications of China Unicom and China Telecom to operate on U.S. networks (see 1909160054). “We need to resolve those as quickly as possible,” he said. “We need to be as forward-looking as possible.”

Starks told us he sees “bipartisan consensus” on security issues, citing commissioners' 5-0 vote in May to revoke the license of Chinese government-owned provider China Mobile (see 1905090039). “All of us are thinking hard about these national security issues,” he said. “I’m kind of leading the way a little bit. … It’s something I’m going to keep talking about.” Starks said he has been discussing the issues with staff for Chairman Ajit Pai.

The FCC Friday sought comment CTIA and the Wireless Infrastructure Association petitions seeking clarity on wireless siting rules. “I haven’t made any final decisions in terms of timing or directions or costs or any of that,” Carr told us: “I’m aware, obviously, that the petitions have come in.” Carr hopes stakeholders across the board will make their views known. “We’ve made significant progress in term of reforms that we’ve already adopted,” Carr said: “I’m always open to more ideas. … No decision as to what comes first or next.”

Carr told CCA smaller communities should be “front and center” as 5G launches. “Those are the thousands of places where regulatory reform truly matters. We get it right, we can flip the business case and make it economical for you all to serve those communities.”

“Members are deeply concerned about maintaining network security,” said CCA President Steve Berry. “We’ve had continued dialogue with the FCC … the national security agencies, the Department of Homeland Security, particularly about securing our national networks and finding a solution that will not be detrimental to competitive carriers.”

Pre-emptive Concerns

States cautioned against pre-emption as local governments continued to sound alarms about the FCC's next push on wireless infrastructure.

"Federal regulators interpreting a law that on its face can override local democratically elected officials actions ... should exhibit considerable regulatory humility when 'clarifying' a federal statute," emailed NARUC General Counsel Brad Ramsay. "Ideally, the FCC will take a federalist approach, listen to their State and local brethren, and hew to the least preemptive construction of the statutory text."

Localities want fair and balanced broadband policies, said Georgia Municipal Association Executive Director Larry Hanson, an FCC Broadband Deployment Advisory Committee member. The BDAC's purpose “was to bring industry, local governments, trade associations and others together to seek mutually developed solutions to broadband deployment,” he emailed. “It is always a concern when parties choose actions outside the good faith negotiations conducted by the very mechanism created to develop and recommend sound public policy.”

"This is a continuation of the FCC policy to give away public property and ask for nothing in return," emailed Maryland's Montgomery County ultraMontgomery Program Director Mitsuko Herrera. The commission hasn't been able to resolve RF emissions rules in six years, she noted. In less than three weeks, it "agreed to consider industry requests to have urban communities provide greater subsidies to communications companies," she said.

“Local governments should be concerned,” emailed local telecom attorney Ken Fellman. “This appears to me to be the next step in a continuing effort by the industry to restrict local authority.” Cities represented by Fellman are reviewing the filings “and hopefully will decide to respond and participate in the proceedings,” he said: It’s sure to be a topic at NATOA's conference next week in Tampa.