FCC Implements the Secure Networks Act

The Federal Communications Commission took further steps to protect the nation’s communications networks from security risks. Specifically, the FCC began integrating portions of the Secure and Trusted Communications Networks Act (Secure Networks Act), which was enacted in March 2020, into its existing supply chain rulemaking proceeding. In that proceeding, the FCC, in Nov 2019, unanimously adopted a ban on the use of Universal Service Fund (USF) support to purchase, obtain, or maintain any equipment or services from companies posing a national security threat to communications networks or the communications supply chain.

July 16’s Declaratory Ruling finds that the FCC has already fulfilled one of its obligations under the Secure Networks Act. In particular, the FCC finds that, by adopting its Nov 2019 ban on USF support for equipment and services produced or provided by companies that pose a national security threat, the agency has substantially implemented its obligation under the Secure Networks Act to prohibit the use of federal subsidies for covered communications equipment and services.

The accompanying Second Further Notice of Proposed Rulemaking seeks public comment on implementing various aspects of the Secure Networks Act, including proposals to: (1) create and maintain the list of covered communications equipment and services required by the statute; (2) ban the use of federal subsidies, including USF funding, for any communications equipment or services placed on this list; (3) require all providers of advanced communications services to report on whether they use any covered communications equipment or services; and (4) prevent waste, fraud, and abuse in the reimbursement program that is required by the statute to remove and replace insecure equipment.