FCC Foreign Equipment Order May Not Mandate Blanket Ban
A draft NPRM on rules potentially barring the use of the USF to buy equipment or services from companies that “pose a national security threat” to U.S. communications networks or the communications supply chain wouldn’t necessarily mean a blanket ban.…
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Smaller wireless carriers said they must buy equipment from Chinese providers Huawei and ZTE and don’t have good alternatives (see 1803260037). “One bright-line approach would be to prohibit use of USF funds on any purchases whatsoever from companies that have been identified as raising national security risks,” the FCC says in the draft. “Would such a rule be most appropriate here? Another approach would be to limit the scope of the proposed rule to equipment and services that relate to the management of a network, data about the management of a network, or any system the compromise or failure of which could disrupt the confidentiality, availability, or integrity of a network.” The FCC asks about a phased-in schedule for the ban and whether an effective date should be later for smaller USF recipients. The FCC also asks about potential waivers. “Should we establish a separate process from our general waiver provision for waivers of our proposed rule?” it asks. “If we provide such a waiver process, how should it function? Should we require a higher standard than good cause for granting waivers, such as ‘extraordinary circumstances?’”