[Federal Register Volume 85, Number 87 (Tuesday, May 5, 2020)]
[Proposed Rules]
[Pages 26653-26655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08822]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[WC Docket No. 18-89; DA 20-406; FRS 16678]
National Security Threats to the Communications Supply Chain
Through FCC Programs
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
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SUMMARY: In this document, the Wireline Competition Bureau (Bureau) of
the Federal Communications Commission (Commission) seeks comment on how
the recently enacted Secure and Trusted Communications Networks Act of
2019 (Secure Networks Act), signed into law on March 12, 2020, applies
to proposals under consideration in the Commission's Protecting Against
National Security Threats to the Communications Supply Chain rulemaking
and related proceedings.
DATES: Comments are due on or before May 20, 2020 and reply comments
are due on or before June 4, 2020. If you anticipate that you will be
submitting comments but find it difficult to do so within the period of
time allowed by this document, you should advise the contact listed as
soon as possible.
ADDRESSES: Interested parties are invited to file comments and reply
comments on or before the dates indicated on the first page of this
document. Comments may be filed using the Commission's Electronic
Comment Filing System (ECFS).
[ssquf] Electronic Filers: Comments may be filed electronically
using the internet by accessing the ECFS: https://www.fcc.gov/ecfs/.
[ssquf] Paper Filers: Parties who choose to file by paper must file
an original and one copy of each filing. Filings can be sent by
commercial courier or by the U.S. Postal Service. All filings must be
addressed to the Commission's Secretary, Office of the Secretary,
Federal Communications Commission. Filings will not be accepted via
hand or messenger delivery.
[ssquf] Commercial deliveries (not including those sent using the
U.S. Postal Service) must be sent to 9050 Junction Drive, Annapolis
Junction, MD 20701.
[ssquf] U.S. Postal Service First-Class, Express, and Priority mail
must be addressed to 445 12th Street SW, Washington, DC 20554.
People with Disabilities. To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an email to [email protected] or call the
Consumer & Government Affairs Bureau at 202-418-0530 (voice, 202-418-
0432 (tty).
Ex Parte Rules. This proceeding shall be treated as a ``permit-but-
disclose'' proceeding in accordance with the Commission's ex parte
rules. Persons making ex parte presentations must file a copy of any
written presentation or a memorandum summarizing any oral presentation
within two business days after the presentation (unless a different
deadline applicable to the Sunshine period applies). Persons making
oral ex parte presentations are reminded that memoranda summarizing the
presentation must: (1) List all persons attending or otherwise
participating in the meeting at which the ex parte presentation was
made; and (2) summarize all data presented and arguments made during
the presentation. If the presentation consisted in whole or in part of
the presentation of data or arguments already reflected in the
presenters written comments, memoranda, or other filings in the
proceeding, the presenter may provide citations to such data or
arguments in his or her prior comments, memoranda, or other filings
(specifying the relevant page and/or paragraph numbers where such data
or arguments can be found) in lieu of summarizing them in the
memorandum. Documents shown or given to Commission staff during ex
parte meetings are deemed to be written ex parte presentations and must
be filed consistent with section
[[Page 26654]]
1.1206(b) of the Commission's rules. In proceedings governed by section
1.49(f) of the rules or for which the Commission has made available a
method of electronic filing, written ex parte presentations and
memoranda summarizing oral ex parte presentations, and all attachments
thereto, must be filed through the electronic comment filing system
available for that proceeding, and must be filed in their native format
(e.g., .doc, .xml., .ppt, searchable .pdf). Participants in this
proceeding should familiarize themselves with the Commission's ex parte
rules.
FOR FURTHER INFORMATION CONTACT: Brian Cruikshank, Wireline Competition
Bureau, [email protected], 202-418-7400 or TTY: 202-418-0484.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Public
Notice in WC Docket No. 18-89, DA 20-406, released April 13, 2020. Due
to the COVID-19 pandemic, the Commission's headquarters will be closed
to the general public until further notice. The full text of this
document is available at the following internet address: https://docs.fcc.gov/public/attachments/DA-20-406A1.pdf.
Synopsis
I. Introduction
1. On November 26, 2019, the Commission adopted the Protecting
National Security Through FCC Programs Report and Order, Further Notice
of Proposed Rulemaking, and Order (R&O, FNPRM, or Information
Collection Order), FCC 19-121, which, in part, prohibits the use of
Universal Service Fund (USF) support to purchase equipment or services
from any company identified as posing a national security risk to
communications networks or the communications supply chain.
2. In the R&O, the Commission also initially designated Huawei
Technologies Company (Huawei) and ZTE Corporation (ZTE), and their
subsidiaries, parents, or affiliates, as companies that may pose such a
risk to the communications networks and supply chain, and established a
process for future designations of other companies posing such a risk.
3. In the FNPRM, the Commission sought comment on a reimbursement
program proposal that would reimburse eligible telecommunications
carriers (ETCs) receiving USF support for the cost to remove and
replace communications equipment and services from finally designated
companies in their networks.
4. Finally, in the Information Collection Order, the Commission
required ETCs, and their subsidiaries or affiliates, to report whether
they had Huawei or ZTE equipment or services in their networks and to
estimate the cost to replace such equipment.
II. Discussion
5. Reimbursement Program. Section 4 of the Secure Networks Act is
largely consistent with the Commission's proposals in the FNPRM, which
proposed a reimbursement program for ETCs to replace potentially
prohibited equipment and services. Section 4 directs the Commission to
establish a reimbursement program for ``providers of advanced
communications service'' to replace covered communications equipment or
services. The legislation, inter alia, limits program eligibility to
providers with two million or fewer customers and restricts funding to
the permanent replacement of covered equipment and services obtained
before August 14, 2018 so long as the equipment and services replaced
are identified as ``covered'' on the initial list issued by the
Commission pursuant to Section 2 of the Secure Networks Act. If
equipment or services are subsequently added to the initial list, then
providers may use the funds to replace equipment and services obtained
no more than 60 days after the date the equipment or services were
added to the list. The Commission seeks comment on whether the
Commission should modify the reimbursement program proposed in the
FNPRM to implement these new statutory requirements. Commenters should
also specifically address how the Commission should interpret
``providers of advanced communications service.''
6. The Secure Networks Act directs the Commission on how to
structure the reimbursement program's application filing and review
process and describes a process that largely resembles the application
process proposed in the FNPRM. Specifically, under the statute, the
Commission must: (1) Require applicants to provide initial
reimbursement cost estimates; (2) act on applications within 90 days of
submission unless a 45 day extension is warranted; (3) provide
applicants an opportunity to cure a deficiency; (4) require
certifications as to the applicant's plan and timeline; and (5) ``make
reasonable efforts to ensure that reimbursement funds are distributed
equitably among all applicants.'' The Commission seeks comment on any
modifications the Commission should apply to the process proposed in
the FNPRM, if any, to implement these requirements.
7. The statute also requires program recipients to complete the
``removal, replacement, and disposal of any covered communications
equipment or services'' within one year after the Commission
distributes reimbursement funds to the recipient. The Commission can,
however, grant a six month general extension of time to all recipients
and individual extensions for up to six months ``if the Commission
finds that, due to no fault of such recipient, such recipient is unable
to complete the permanent removal, replacement, and disposal.'' What
challenges, if any, will carriers face in replacing equipment and
services in the timeframes required by the Secure Networks Act? Is the
Commission able to grant both general and individual extensions under
the statute or does the grant of a general extension prohibit us from
granting additional individual extensions? Can the Commission grant
multiple extensions to an individual recipient if the circumstances
warrant such action? Separately, if the Commission proceeds with having
a reimbursement process similar to the one used in the broadcast
incentive auction proceeding, how would the deadline for completing the
removal and replacement process be structured if the Commission uses
initial disbursement allocations based on cost estimates before
actually issuing support payments as expenses are incurred?
8. The statute requires the Commission to include disposal
requirements for covered equipment that ``prevent such equipment or
services'' from being used in other providers' networks. The Secure
Networks Act mandates that reimbursement recipients provide regular
status updates to the Commission and that these status updates be
posted on the Commission's website. The statute further requires that
the Commission take ``all necessary steps'' to prevent waste, fraud,
and abuse, including by conducting audits and random field
investigations of recipients and by requiring recipients to provide
regular reports on how they have spent reimbursement funds. The
Commission seeks comment on these provisions and the extent of the
changes needed, if any, to the proposals in the FNPRM to implement the
legislation.
9. The reimbursement program created by the Secure Networks Act
appears to require an express appropriation from Congress. The Secure
Networks Act, however, does not provide funding for the reimbursement
program and states that the program
[[Page 26655]]
must be ``separate from any Federal universal service program
established under section 254 of the Communications Act of 1934, as
amended.'' The Commission seeks comment on our reading of these
provisions.
10. List of Suggested Replacements. Section 4(d)(1) of the Secure
Networks Act directs the Commission to ``develop a list of suggested
replacements of both physical and virtual communications equipment,
applications and management software, and services or categories of
replacements of both physical and virtual communications equipment,
applications and management software, and services.'' The list must be
``technology neutral and may not advantage the use of reimbursement
funds for capital expenditures over operational expenditures, to the
extent that the Commission determines that communications services can
serve as an adequate substitute for the installation of communications
equipment.''
11. How should the Commission develop a list of suggested
replacement communications equipment and services? What are possible
sources of this information? How often should the Commission update the
list? What is the most efficient method of seeking public input on
appropriate equipment and services for the list? Can the list simply
include all equipment and services from certain companies, or must it
include the precise names of the equipment and services from those
companies that are eligible for reimbursement? Should the list include
suppliers of virtual network equipment and services?
Federal Communications Commission.
Daniel Kahn,
Associate Chief, Wireline Competition Bureau.
[FR Doc. 2020-08822 Filed 5-4-20; 8:45 am]
BILLING CODE 6712-01-P