On May 25, 2023, the National Telecommunications and Information Administration (NTIA) announced that, on behalf of the U.S. government, it filed responses to the European Commission’s public consultation on The Future of the Electronic Communications Sector and Its Infrastructure. The consultation explores the issue of how to best promote connectivity and ensure reliable broadband access throughout the EU, as well as the kinds of infrastructure and investments needed to support the evolving telecommunications landscape. Among other things, the consultation seeks feedback on whether content and application providers (also referred to as Over-The-Top (OTT) services in the U.S.) should make mandated “fair share” payments to telecom operators to subsidize current and future connectivity needs. NTIA’s filing comes amid an ongoing debate surrounding the future of the U.S. Universal Service Fund (USF) and whether and how to expand its contribution base.
FCC Steps Up Review of Foreign Ownership in Telecom Carriers; Proposes Cybersecurity Mandates
Last week, the Federal Communications Commission (“FCC”) released an Order and Notice of Proposed Rulemaking (“NPRM”) that could have significant compliance implications for all holders of international Section 214 authority (i.e., authorization to provide telecommunications services from points in the U.S. to points abroad), as well as all entities holding an ownership interest in these carriers. The item requires all holders of international Section 214 authority to respond to a one-time information request concerning their foreign ownership and proposes sweeping changes to the agency’s licensing rules for such licensees.
Although the FCC’s information request may be more relevant in the near term, it is a limited one-time requirement. By contrast, the rule changes on which the FCC seeks comment are far-reaching and, if adopted as written, could result in significant future compliance burdens, both for entities holding international Section 214 authority, as well as the parties holding ownership interests in these entities.
The FCC’s latest actions underscore the agency’s ongoing desire to closely scrutinize foreign ownership and involvement in telecommunications carriers serving the U.S. market, as well as to play a more active role in cybersecurity policy. These developments should be of interest to any carrier that serves the U.S. market and any financial or strategic investor focused on the telecommunications space, as well as other parties interested in national security developments affecting telecommunications infrastructure.
FCC Chairwoman to Propose More Frequent Foreign Ownership Review of FCC Licensees for National Security Purposes
Last week, Chairwoman Jessica Rosenworcel of the Federal Communications Commission (FCC) announced that she expects to circulate a proposal shortly that will authorize the FCC and/or certain national security agencies to periodically evaluate the foreign ownership of FCC licensees in light of national security considerations. She made this announcement in a speech that focused on
FCC Commissioner Simington Proposes Mandatory Security Updates for Devices
Last week, in remarks at an industry conference, Republican FCC Commissioner Nathan Simington proposed that the FCC consider requiring electronic device manufacturers to “take reasonable steps” to protect device security, including requiring them to issue software or firmware updates to patch security flaws and ensure that devices are designed to be easily patched.
His remarks
FCC Bans “Untrustworthy Communications Equipment” from the U.S. Market; Measure Could Have Broader Implications for All Device Manufacturers
On November 25, 2022, the FCC effectively banned certain Chinese telecom and video surveillance devices from the U.S. market – demonstrating the power of its authority over virtually all electronics equipment, which until last week’s decision had been exercised only to address technical, scientific and engineering concerns. With Congressional backing, the FCC now has established
Federal Government Issues Multi-Billion Dollar Notices of Funding Opportunity for Broadband Programs
Last Friday, the National Telecommunications and Information Administration (“NTIA”) took a major step in furtherance of the Biden Administration’s goal of connecting all Americans to broadband by releasing its widely anticipated Notice of Funding Opportunity (“NOFO”) for the landmark $42.5 billion Broadband Equity, Access, and Deployment (“BEAD”) Program, along with NOFOs for two smaller programs.
FCC Proposes to Require Broadband “Nutrition Labels”; Comments Due March 9
On January 27, 2022, the Federal Communications Commission (“FCC”) adopted a Notice of Proposed Rulemaking (“NPRM”) that would require internet service providers (“ISPs”) to display labels disclosing certain service information, including prices, introductory rates, data allowances, broadband speeds, and network management practices. Notably, the NPRM proposes to adopt—with some modifications—the labels developed by an advisory committee and published by the Commission in a 2016 Public Notice.
Continue Reading FCC Proposes to Require Broadband “Nutrition Labels”; Comments Due March 9
NTIA Seeks Input on Broadband Infrastructure Programs
On November 15, 2021, the Infrastructure Investment and Jobs Act (“IIJA”) became law, authorizing $65 billion in federal broadband investments with the goal of connecting all Americans to reliable, high speed, and affordable broadband. The IIJA directed the National Telecommunications and Information Administration (“NTIA”) to oversee the distribution of $48.2 billion in infrastructure grants to
IoT Update: FCC to Open Inquiry into Spectrum Needs for Growth of the Internet of Things
Last week, the office of Acting FCC Chairwoman Jessica Rosenworcel released a draft Notice of Inquiry (NOI) regarding spectrum availability and requirements to support the growth of Internet of Things (IoT). The FCC will consider this NOI, which is intended to collect information and does not propose rules, in its next Open Commission Meeting scheduled for September 30, 2021. This proposed NOI is the latest in a series of FCC actions that will affect the future deployment of IoT products and services in the United States.
Continue Reading IoT Update: FCC to Open Inquiry into Spectrum Needs for Growth of the Internet of Things
FCC Set to Ease Rules that Have Limited Pre-Sales and Other Marketing of Some New Electronic Devices
Last Thursday, the Federal Communications Commission (“FCC”) announced that it will consider a Report and Order at its June 21, 2021 open meeting that would permit the importation and conditional sale of radiofrequency (RF) devices prior to obtaining equipment authorization in some circumstances. The consumer electronics industry has advocated for this rule change, which will facilitate pre-sales and other marketing of new devices in the marketplace.
If adopted, the Report and Order would afford manufacturers and developers of RF devices significant flexibility in conducting pre-sale activities and potentially reduce the time required to deliver devices to market. These revisions represent a significant change to the FCC’s equipment and marketing rules and bring the FCC’s equipment marketing and pre-sales regime in line with many other industries.
Continue Reading FCC Set to Ease Rules that Have Limited Pre-Sales and Other Marketing of Some New Electronic Devices