FCC OKs Network Security Ruling; Democrats Say Agency Not Doing Enough

Commissioners approved a declaratory ruling saying that regulator has fulfilled one of its obligations under the Secure and Trusted Communications Networks Act (HR-4998). The FCC approved the item despite the different stances of Mike O’Rielly and Brendan Carr. Commissioners Geoffrey Starks and Jessica Rosenworcel said the FCC still isn't doing enough to ensure secure networks in the U.S. After the draft item was circulated, the agency barred Huawei and ZTE from participating in the USF (see 2006300078).

“National security experts have warned that when companies are beholden to foreign governments with interests adverse to the United States their products and services can threaten our country,” said Chairman Ajit Pai: “This is certainly the case with … Huawei and ZTE.” Pai told reporters he had no update on the review of whether the FCC should revoke the domestic and international authorizations allowing four Chinese telecom providers to operate in the U.S. (see 2004240046). Huawei and ZTE didn’t comment.

O’Rielly said to proceed with care. The FCC relied on a “very broad definition” last year when it approved national security supply chain rules, barring equipment from Chinese vendors Huawei and ZTE from networks funded by the USF and establishing rules that could block other providers (see 1911220033), he said. Other federal agencies are taking a different approach, he said. “Given the lack of consensus on what equipment and services pose a national security risk, we should take a step back and delay any publication of the list of companies that reported covered equipment under our definition.” He said that "publicly exposing companies, which did not do anything wrong at the time they purchased their equipment, and potentially causing substantial financial harm should only be considered as a necessary step if their equipment is ultimately determined to pose a true threat.”

Carr noted China’s clampdown on Hong Kong, despite promises of independence. Carr is a strong critic of China (see 2004290061). Huawei asked repeatedly “why would the Chinese regime risk its years of investment in these companies for a leg up on spying?” Carr said. Those were “meant to be rhetorical questions” but “they can’t be after Hong Kong,” he said. If “one country, two systems ... revealed itself as a sham in Hong Kong, we cannot expect one company, two systems to fare any better at Huawei,” he said.

“Create an FCC National Security Task Force” and stop spreading oversight among the bureaus, Starks said. “This distributed structure makes internal coordination challenging and risks inconsistent treatment of national security issues between different bureaus,” he said. “Promote equipment supplier diversity and level the competitive playing field.” Starks wants more focus on paying for the replacement of equipment ripped out of networks, which carriers bought “in good faith.”

“There is more we can do to secure our 5G future,” Rosenworcel said: “There is more we can do to power the future of innovation. There is more we can do to make sure the United States has a fighting chance at leading in what comes next.”

Both Democrats want more focus on open radio access networks (O-RANs). Rosenworcel noted that Attorney General William Barr called O-RAN “just pie in the sky” in February. Barr is wrong, she said. “It may be audacious, but that’s exactly why the United States needs to lead,” she said: “Yet there are reports that the Department of State wants a watered-down version of the open RAN concept. This is troubling. Across the board we need a more cohesive government-wide 5G strategy, especially with open RAN.” The commission could require that companies replacing Chinese equipment “consider solutions offered by an O-RAN provider,” Starks said.

“The Commission finds that, by adopting its November 2019 ban on USF support for equipment and services produced or provided by companies that pose a national security threat, the agency has substantially implemented its obligation under" HR-4998 "to prohibit the use of federal subsidies for covered communications equipment and services,” said a news release.

Pai is pleased the U.K. barred Huawei from networks there (see 2007140023), he told reporters. “It speaks to the fact that here in the United States the FCC is working diligently and cooperatively."

Lead HR-4998 sponsor House Commerce Committee Chairman Frank Pallone, D-N.J., tweeted he’s “glad” the FCC “took further action” to implement the law. “Networks with equipment backed by adverse foreign nations leave us vulnerable to hacks and disruptions, and we must remain vigilant to get, and keep, it out,” he said.