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'Significant Consequences'

Rosenworcel Urges Action on Rip and Replace; Proposes Lab Security Rules

The FCC released the text Thursday of a draft NPRM proposing to bar labs from entities on the agency’s “covered list” of unsecure companies from participating in the equipment authorization process. Chairwoman Jessica Rosenworcel and Republican Commissioner Brendan Carr announced the NPRM Wednesday. It will get a vote at the commissioners' open meeting May 23 (see 2405010073).

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Rosenworcel, meanwhile, sent a letter to Congress Thursday urging full funding to close the more than $3 billion shortfall in the FCC’s rip-and-replace program, which pays for replacing Huawei and ZTE communications gear and services. Many small carriers could be in financial trouble if Congress doesn’t fully fund the program (see 2404100067). Funding has also emerged as an issue as the Senate considers spectrum legislation (see 2405010055).

I am writing again to ... emphasize again the urgent need for full funding of the Reimbursement Program,” Rosenworcel said. Carriers face deadlines from May 29 to Feb. 4, she said. To date, the FCC has granted 64 extensions, “including 52 based in whole or in part on the funding shortfall,” to complete the removal and disposal, she said. Most recently, 64% of the status updates filed in April “indicated that the lack of full funding continues to be an obstacle,” she said.

Several recipients have recently informed the Commission that they foresee significant consequences that could result from the lack of full funding, including having to shut down their networks or withdraw from the program,” Rosenworcel said: “Because Reimbursement Program recipients serve many rural and remote areas of the country where they may be the only mobile broadband service provider, a shutdown of all or part of their networks could eliminate the only provider in some regions.”

The urgency of the Chairwoman’s letter highlights the dire necessity to secure our nation's communications infrastructure and prevent network failures and service reductions impacting tens of millions of consumers,” said Competitive Carriers Association President Tim Donovan: “We urge Congress to seize the opportunity to include full Program funding in the Securing Growth and Robust Leadership in American Aviation Act.”

The draft NPRM focuses on telecommunications certification bodies (TCBs) and measurement facilities, to which the commission delegates authority to conduct parts of the equipment authorization program. Nearly 640 test labs are on the FCC list, the draft says. FCC rules require that TCBs are located in the U.S. or in countries that have entered into “applicable Mutual Recognition Agreements” with the U.S.

The draft proposes to prohibit from participating in the authorization program any TCB or test lab in which a company on the commission’s covered list has direct or indirect ownership or control of 10% or more. It also proposes to direct the Office of Engineering and Technology to suspend these companies from the program and would require TCBs and test labs to report on any entity that holds a “5% or greater direct or indirect equity and/or voting interest in them.” The draft seeks comment on other revisions “to promote the integrity” of TCBs and test labs.

The Commission’s equipment authorization program, codified in the Commission’s part 2 rules, play a critical role in enabling the Commission to carry out its responsibilities under the Communications Act,” the draft says: The program “helps ensure that communications equipment” complies “with certain other policy objectives -- which include protecting the communications networks and supply chain from equipment that poses an unacceptable risk to national security.”