International Markets & Team Telecom

Protecting the U.S. communications supply chain from national security threats has become a priority for the Federal Communications Commission (“FCC” or “Commission”) and the agency’s recent Communications Supply Chain Protection proceeding resulted in new rules restricting the use of universal service support funds for certain equipment and services and the designation of Huawei and ZTE as national security threats to the communications networks and supply chain. The recently enacted Secure and Trusted Communications Networks Act of 2019 (“Secure Networks Act”) requires the FCC to adopt additional communications supply chain protection measures and the Declaratory Ruling (“Declaratory Ruling”) and Second Further Notice of Proposed Rulemaking (“Second FNPRM”), adopted by the FCC’s at its July Open Meeting, continues the Commission’s implementation of the Secure Networks Act. The Declaratory Ruling/Second FNPRM declares the Commission’s compliance with the Secure Networks Act’s federal funding prohibition requirement and seeks comment on the FCC’s proposed interpretation and implementation of other provisions including key definitions and the identification of equipment and services subject to federal funding prohibitions.

Comments on the Second FNPRM are due by August 31, 2020 and reply comments are due by September 14, 2020.


Continue Reading FCC Remains Focused on Communications Supply Chain Protection; Seeks Comment on Continued Implementation of Secure Networks Act

Last Thursday, the President issued two executive orders (“E.O.s”) targeting social media applications TikTok (and its parent company, ByteDance) and WeChat (and its parent company, Tencent Holdings).  The E.O.s direct the Department of Commerce (“DOC”) to prohibit transactions involving the applications.  Companies that deal directly with TikTok or WeChat in the United States and abroad

The FCC is moving full steam ahead this summer with a jam-packed agenda for its next open meeting, scheduled for July 16, 2020. Headlining the meeting is the creation of the National Suicide Prevention Lifeline, establishing 988 as the 3-digit dialing code for the suicide and mental health crisis hotline. All telecommunications carriers and VoIP providers would be required to implement 988 on their networks by July 16, 2022. The FCC continues to move forward on eliminating unwanted and illegal robocalls, planning to carve out safe harbors from liability for call blocking based on reasonable analytics and seeking comment on any additional obligations for blocking providers. The supply chain rulemaking would adopt the Commission’s prohibition on using universal service funds to support equipment or services provided by identified companies posing a national security threat, and propose further requirements for securing communications networks. The agency also plans to affirm and build upon vertical location requirements for enhanced 911 location accuracy and to establish procedures for enhanced broadband mapping and data collection. In addition, the agenda includes items to modernize the leased access rate formula and streamline and update the priority service program rules for emergency workers.

While FCC action historically dwindles going into an election year, the July agenda shows no signs of slowing down on the Commission’s main priorities. You will find more details on the most significant July meeting items after the break:


Continue Reading FCC Previews a Jam-Packed July Open Meeting with National Suicide Prevention Lifeline, Call Blocking, and Supply Chain Items Leading the Agenda

The Federal Communications Commission (“FCC”) seeks to refresh the record in a long-dormant 2016 proceeding that sought to lend greater certainty to reviews by the group of Executive Branch agencies informally referred to as “Team Telecom.” As we discussed in a prior post, an April 4, 2020 Executive Order 13913 (“E.O. 13913”) formalized Team Telecom – including naming it, officially, the “Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector.” Despite E.O. 13913 conferring some structure on the Team Telecom review process, many aspects of the review process remain to be developed. Intent on lending a helping hand filling in gaps, the FCC seeks comment on whether and how E.O. 13913 affects the 2016 proceeding proposals. The 2016 proceeding floated some proposals that would be broadly applicable, such as new certifications for all applicants not just those involving disclosable levels of foreign ownership, the usual trigger for Team Telecom review. Consequently all licensed providers may want to assess if this proceeding warrants a close look.

For those interested in participating, comments and replies are due by June 18, 2020 and July 2, 2020, respectively.


Continue Reading Comment Date on Refresh of Team Telecom Reform Proceeding Approaches

For decades, parts of the Federal government have examined transactions that introduce and increase foreign investment in United States telecommunications businesses. Transactions that implicate reviews by the Departments of Justice, Defense, and Homeland Security (collectively, “Team Telecom”) and/or by the Committee of Foreign Investment in the United States (“CFIUS”) can face procedural hurdles and delays

For years, there have been critiques about the lack of procedures surrounding the review, by a group of Executive Branch agencies commonly referred to as “Team Telecom”, of applications before the Federal Communications Commission (“FCC” or “Commission”) for licenses and transaction approvals involving foreign ownership, including the absence of timeframes for completing reviews. The FCC tried to implement limited changes within its jurisdiction by launching a rulemaking, but that never progressed to a conclusion. Now, by Executive Order (“EO”) on April 4, 2020, President Trump established a framework to govern such reviews and clearly include reviews of existing licenses and authorizations even where there are no current mitigations. There are still a lot of unknowns regarding the new “Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector” (the “Committee”). It is too soon to know whether the Committee will bring a welcome measure of regularity to a previously unshackled process or will prove to be an even greater bane to applicants and licensees than the Team Telecom process its work will replace.

Continue Reading President Formalizes Executive Agency Review of FCC Applications and Licenses; Quick Action on FCC License Revocation

The Federal Communications Commission (“FCC”) is acting swiftly on efforts to protect the communications supply chain from entities posing a national security threat. In a Public Notice (“Public Notice”) released yesterday, the FCC announced that U.S. telecommunications carriers receiving Universal Service Fund (“USF”) support, known as eligible telecommunications carriers (“ETC”), must report on their use of equipment and services from Huawei Technologies Company (“Huawei”) and ZTE Corporation (“ZTE”).

The information collection is mandatory for all entities that were ETCs as of December 31, 2019, and includes the ETC’s subsidiaries and affiliates. The information filings, which must be submitted via the FCC’s online filing portal, are due by April 22, 2020.


Continue Reading FCC Continues Supply Chain Protection Efforts; ETCs to Report on Huawei and ZTE Use by April 22, 2020

In a strongly worded Report and Order, Further Notice of Proposed Rulemaking, and Order (the “Order”) released on November 26, 2019, the FCC adopted several measures to protect U.S. communications networks from potential national security threats. Likely coming as no surprise to anyone following the proceeding or current news, the FCC identified Huawei Technologies Company (“Huawei”) and ZTE Corporation (“ZTE”), both Chinese telecommunications equipment manufacturers, as national security threats based, in large part, on the companies’ close ties to the Chinese government. Adding to numerous recent federal actions addressing national security concerns, the Order takes three significant steps, within the context of the universal service fund (“USF”) program, to try to mitigate national security threats to the nation’s communications networks.

Continue Reading FCC Prohibits Carriers Receiving USF Support from Using Providers Deemed to Pose a National Security Risk; Further Notice to Explore Using USF to Replace Equipment Already Installed

Editor’s note:  CommLaw Monitor primarily addresses developments in communications and technologies in the United States. We provide this special update regarding new regulations in Germany for the benefit of U.S. and foreign service providers alike. The security issues discussed below may have implications for all service providers.

The German Federal Network Agency, Bundesnetzagentur (BNetzA), recently launched a final public consultation on its new draft Catalogue on security requirements for telecommunications service providers and operators of public telecommunications networks. The draft is revamped significantly, but follows the same vein as its predecessors to prevent disruptions and manage security risks, by requiring providers and operators to implement technical security measures and safeguards for operating telecommunications and data processing systems. The deadline for comments on this version 2.0 of the Catalogue is 13 November 2019, but the BNetzA is unlikely to make fundamental changes at this late stage. Consequently, stakeholders should consider the draft as a reliable indicator of the official version, and assess how to best satisfy the requirements.


Continue Reading Proposed German Regulations To Require Additional Security Measures for Telecom Carriers

The FCC plans to prohibit the use of Universal Service Fund (“USF”) support to purchase equipment or services from foreign entities that it determines pose national security risks at its next meeting scheduled for November 19, 2019. As we previously reported, the ban may severely impact participants in all federal USF programs and involve a costly “rip and replace” process to remove foreign-made equipment from domestic telecommunications networks. The FCC also expects to move forward on its heavily-anticipated E911 vertical accuracy (i.e., z-axis) proceeding and adopt new requirements for wireless carriers to better identify caller locations in multi-story buildings. Rounding out the major actions, the FCC anticipates proposing new rules for suspending and debarring entities from participating in USF and other funding programs; removing longstanding unbundling and resale requirements for certain telecommunications services; and widening the contribution base for the Internet Protocol Captioned Telephone Service (“IP CTS”) to include intrastate revenues.

The draft items cover the gamut of telecommunications issues, affecting everything from the construction of next-generation 5G networks to legacy intercarrier competition rules, and should be closely watched. You will find more details on the most significant November FCC meeting items after the break:


Continue Reading FCC to Address Public Safety Concerns at November Meeting