FCC agenda meeting to evaluate items of interest for manufacturers and operators of radiofrequency equipment

At its December 10 agenda meeting, the Federal Communications Commission (FCC) will consider two items of interest to manufacturers and network operators that use radiofrequency equipment.  

Threats to the telecommunications supply chain

This first addresses threats to the telecommunications supply chain by adopting new rules to implement the Secure and Trusted Communications Networks Act of 2019.  As summarized by the draft order, the document would:

• Adopt rules to publish and modify a list of “covered communications equipment and services” that pose an unacceptable risk to the national security of the United States.
  • The list will be compiled from four sources that have made such determinations:  1) any executive branch interagency body with appropriate national security expertise, including the Federal Acquisition Security Council; 2) the Department of Commerce pursuant to Executive Order No. 13873 relating to securing the information and communications technology and services supply chain; 3) the communications equipment or service described in the 2019 NDAA; or 4) any other appropriate national security agency.
• The draft order would prohibit the use of any federal subsidy that is made available through a program administered by the FCC for obtaining any covered communications equipment or services.
• Establish the Secure and Trusted Communications Network Reimbursement Program, which will reimburse entities for the removal, replacement and disposal of covered communications equipment and services, and condition the start of the program on Congress appropriating the funds the Commission estimates that program will cost.
• Require eligible telecommunications carriers and participants in the Secure and Trusted Communications Network Reimbursement Program to remove, replace and dispose of covered communications equipment and services in their networks.  
• Require all providers of advanced communications services to report whether their networks use any covered communications equipment or services acquired after August 14, 2018.

Equipment approval and importation

The FCC will also consider a notice of proposed rulemaking (NPRM) addressing the marketing and importation of radiofrequency devices.  As described in the draft NPRM, the item proposes to modify the Commission’s rules to permit conditional sales prior to equipment authorization provided that the equipment is not delivered to consumers until equipment authorization has been completed.  

In addition, the draft document would permit a limited number of devices to be imported for pre-sale activities prior to the device receiving equipment authorization.  Pre-authorization activities would include packaging and shipping devices to retail locations as well as loading the devices with software to demonstrate features and capabilities of the devices.  

Both proposals would significantly increase the ability of manufacturers and distributors to market devices prior to receiving equipment approval.   

Please contact Nancy Victory or Michael Lewis if you or your clients wish to discuss either of these proceedings.