Press Release

Secretary of Commerce Wilbur Ross announced that Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China (“ZTE Corporation”) and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (“ZTE Kangxun”) (collectively, “ZTE”) has agreed to severe additional penalties and compliance measures to replace the US Commerce Department’s Bureau of Industry and Security (BIS) denial order imposed as a result of ZTE’s violations of its March 2017 settlement agreement.

The digital divide is showing signs of giving way as more Americans from all walks of life connect to the Internet. Several historically disadvantaged groups showed significant increases in online adoption, according to initial results from NTIA’s most recent survey on Internet use conducted by the US Census Bureau.

During my tenure at the Commission, many of our nation's most prominent broadband Internet service providers (ISPs) have created or participated in programs that promised to lower affordability barriers that prevent low-income communities from bridging digital divides. Over the past several years, some have offered stand-alone broadband service offerings at discounted rates for those families that meet certain criteria. Unfortunately, it is difficult for us to measure the success of those programs due to a lack of publicly available data.

Federal Communications Commission Chairman Ajit Pai announced that he has circulated a draft order to his colleagues that would take immediate action to significantly increase funding for the Universal Service Fund’s Rural Health Care Program. The program’s current annual funding cap is $400 million. The cap was set in 1997 and was never indexed for inflation. Recently, demand for funding under the program has outpaced the budget, creating uncertainty for patients, health care providers, and communications companies alike.

At our hearing with CEO Mark Zuckerberg, bipartisan members of the committee asked direct questions about Facebook sharing personal data with third-parties. Clearly, the company’s partnerships with Chinese technology companies and others should have been disclosed before Congress and the American people. The spirit of our questions about third-party access to user data should not have required technical knowledge of the legal agreements Facebook has with device manufacturers to get clear answers for the public.

The following items have been adopted by the Federal Communications Commission and deleted from the list of items scheduled for consideration at the June 7, 2018 Open Meeting:

The Senate has confirmed the nominations of Rubydee Calvert and Laura Gore Ross to the board of directors of the Corporation for Public Broadcasting (CPB). Calvert worked at Wyoming PBS from its inception in 1983. She served as general manager of the station until her retirement in 2015 and as president of the Wyoming PBS Foundation from 2006-2016. Prior to becoming general manager, she was the director of programming for 24 years, leading the production team to produce the station’s signature series MainStreet, Wyoming.

House Commerce Ranking Member Frank Pallone, Jr.

Senate Commerce Committee Chairman John Thune (R-SD) and Ranking Member Bill Nelson (D-FL) pressed Facebook CEO Mark Zuckerberg for answers following a report in the New York Times that Facebook offered numerous mobile device manufacturers special access to private user information.

In a recent spending bill, Congress made $600 million available for additional broadband deployment to America’s rural areas. The US Department of Agriculture’s Rural Utilities Service (RUS) has been tapped to administer these funds through a new pilot program. Without question, this funding is a welcome and needed addition to the growing arsenal now aimed squarely at closing the digital divide to rural Americans once and for all. Private investment, paired with dedicated federal programs, will connect millions more in the coming years.