International Markets & Team Telecom

The upcoming election will bring changes to the FCC, regardless of which party wins the White House. In this episode of Kelley Drye’s Full Spectrum, Partners John Heitmann and Steve Augustino are joined by Dana Wood, co-chair of Kelley Drye’s Government Relations and Public Policy (GRPP) practice, for a discussion of the potential organizational

The FCC announced a jam-packed agenda for its penultimate meeting before the 2020 general election, with a focus on long-awaited spectrum sharing and caller ID authentication actions. At its meeting scheduled for September 30, 2020, the FCC plans to clear the way for eventual sharing of 3 GHz spectrum between commercial wireless providers and federal incumbents. The FCC announced earlier this year its intention to auction flexible use licenses in the 3.45-3.55 GHz band in December 2021. The Department of Defense, as a primary user of the band, has already devised a sharing framework for the spectrum. The FCC also plans to allow commercial wireless providers to lease spectrum in the 4.9 GHz band, which currently is allocated to public safety operations. The agency claims the band remains underutilized and that leasing arrangements could free up to 50 megahertz of mid-band spectrum to support commercial 5G services. In addition, the FCC plans to hold firm on its June 30, 2021 deadline for most voice providers to implement the STIR/SHAKEN caller ID authentication framework for IP networks and to extend such requirements to intermediate providers that neither originate nor terminate calls. Rounding out the major agenda items, the FCC plans to streamline executive branch foreign ownership reviews of certain applications formerly handled by “Team Telecom,” adopt a phase down in IP Captioned Telephone Service (“IP CTS”) compensation and impose IP CTS service standards, and launch an inquiry into state diversion of 911 fees.

FCC regulatory activity likely will slow in the immediate lead-up to and aftermath of the 2020 general election. As a result, the September agenda may represent the FCC’s last big push on major reforms for the year. You will find more details on the significant September meeting items after the break:


Continue Reading Spectrum Sharing and Caller ID Authentication Top Jam-Packed FCC September Meeting Agenda

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