Today's Regulatory Mix:  US Congress Urges FCC Action on Replacing Suspect Network Equipment, US Congress Requests Audit of Rural Broadband Pilot Program, FCC Announces Tentative December Agenda, FCC Quantum Internet Forum,  FCC Releases Memorandum on Use of Economics and Analytics in Rulemakings, Canada (CRTC) Announces Emergency Alert Test

 The Regulatory Mix will return on 12/1/2020. Happy Thanksgiving!

US Congress Urges FCC Action on Replacing Suspect Network Equipment

House Energy and Commerce Committee Republican Leader Greg Walden (R-OR) and Chair Frank Pallone, Jr. (D-NJ) wrote to FCC Chairman Ajit Pai urging him to assist companies as they prepare and plan to replace suspect network equipment, including companies eligible for reimbursement under the Secure and Trusted Reimbursement Program. The program was established by Pallone and Walden’s H.R. 4998, the Secure and Trusted Communications Network Act, which was signed into law earlier this year.  While the program has not yet been funded, the leaders say there is every expectation it will be, and the FCC should begin immediately to initiate certain implementation steps.

“Through this Program, small communications providers may seek reimbursement for the cost of removing and replacing suspect network equipment. This funding is critical because some small and rural communications providers would not otherwise be able to afford these upgrades,” wrote Walden and Pallone. “While the Program has not yet been funded by Congress, there is demonstrated bipartisan and bicameral support for doing so. In the meantime, carriers are moving forward to remove their suspect equipment and need guidance. There are specific steps the FCC can take to help companies eligible for reimbursement under the Program plan, prepare, and begin acting to remove and replace this equipment.”

The two Committee leaders encourage the FCC to develop and release a list of eligible equipment and software, for example, as well as reassure companies that they will not jeopardize their eligibility for reimbursement under the Program just because their replacement purchases were made before it was funded.

“The COVID-19 pandemic has demonstrated the importance of having reliable and secure communications services, and companies eligible for reimbursement under the Program will have to engage in very careful and intentional planning to replace suspect equipment while at the same time not disrupting its service,” Walden and Pallone said.  “We urge you to take these specific, non-controversial actions as quickly as possible so these important efforts to secure our communications networks are not delayed.”

US Congress Requests Audit of Rural Broadband Pilot Program

House Energy and Commerce Committee Republican Leader Greg Walden (R-OR), Communications and Technology Subcommittee Republican Leader Bob Latta (R-OH), and Republican subcommittee members have asked the U.S. Government Accountability Office (GAO) to begin an audit of the Rural eConnectivity Pilot Program (ReConnect Pilot Program) within the U.S. Department of Agriculture (USDA).  Specifically, they asked for an in-depth audit of the ReConnect Pilot Program, including whether USDA coordinates effectively with the FCC to ensure no RUS funds are sent to areas already receiving USF funds, and a report on any other issues of concern regarding the funding and administration of the ReConnect Pilot Program. In addition, they sought answers to a specific set of questions dealing with overbuilding, interagency coordination, and transparency and administration.

The lawmakers wrote: “ As GAO and others have reported, access to broadband infrastructure is critical for economic development, educational and job opportunities, and public health and safety.  Yet, overbuilding broadband networks diverts scarce budget resources from unserved areas to areas where broadband is available or will be made available through private investment or other federal resources.  On March 23, 2018, the Consolidated Appropriations Act of 2018 was enacted into law and appropriated $600,000,000 in new funding for a temporary pilot program at the USDA to support broadband infrastructure deployment.  Subsequently, Congress appropriated $1,452,060,000 to this temporary pilot program in 2019 and 2020.  Given the need to ensure the most efficient and effective use of federal dollars to promote broadband infrastructure deployment and guard against waste, fraud, and abuse, we request an in-depth GAO audit of broadband support provided by the Rural Utilities Service (RUS), an agency within the USDA responsible for implementing and administering the temporary ReConnect Pilot program.”

FCC Announces Tentative December Agenda

FCC Chairman Ajit Pai announced the tentative agenda for the FCC’s December Open Meeting to be held on December 10, 2020.  The items to be considered are:

• Securing the Communications Supply Chain – A Report and Order that would require Eligible Telecommunications Carriers to remove equipment and services that pose an unacceptable risk to the national security of the United States or the security and safety of its people, would establish the Secure and Trusted Communications Networks Reimbursement Program, and would establish the procedures and criteria for publishing a list of covered communications equipment and services that must be removed.
• Allowing Earlier Equipment Marketing and Importation Opportunities –A Notice of Proposed Rulemaking that would propose updates to its marketing and importation rules to permit, prior to equipment authorization, conditional sales of radiofrequency devices to consumers under certain circumstances and importation of a limited number of radiofrequency devices for certain pre-sale activities.
• Promoting Broadcast Internet Innovation Through ATSC 3.0 – A Report and Order that would modify and clarify existing rules to promote the deployment of Broadcast Internet services as part of the transition to ATSC 3.0.

The FCC will also consider two national security matters for which details were not released.

FCC Quantum Internet Forum

FCC Chairman Ajit Pai announced that the FCC will host a Quantum Internet Forum on December 15, 2020.  Unlike classical technologies, quantum information processing harnesses the unique quantum mechanical properties of superposition and entanglement to build systems that promise to revolutionize information processing. These include, for example, data communications that are guaranteed to be secure by the laws of physics and the ability to exponentially speed up certain types of computations by orders of magnitude as compared to classical computing.  Applications of quantum information processing to secure communications, computing, and sensing are beginning to make the transition from basic science to early stage technology development and deployment.  The United States government has also identified leadership in quantum as a national priority.

The forum will have three panels: The Quantum Internet: Theory and Applications; Challenges, Opportunities, and Roadmaps; and Global Landscape, Funding, and Workforce Needs.  The keynote speech will be delivered by David Awschalom of the University of Chicago. 

Chairman Pai said: Quantum technologies have the potential to shape the Internet of the future with respect to secure services and capabilities. I’m glad the FCC will host experts from around the country for a stimulating conversation about this next frontier of network technology. And I look forward to hearing from academia, industry, and our government partners and learning more about quantum’s potential importance to communications networks. I expect this forum will foster greater understanding about the quantum Internet of the future and highlight ways the public and private sectors can cooperate to ensure American success in this area.”

FCC Releases Memorandum on Use of Economics and Analytics in Rulemakings

The FCC released a memorandum by the Office of Economics and Analytics (OEA) and the Office of General Counsel formalizing the FCC’s procedures for incorporating economic analysis into its decision-making. Among other things, the memorandum establishes expectations for when and how FCC staff should engage OEA for economic review and analysis on FCC items, discusses the extent of economic analysis expected for rules with different levels of economic impact, and outlines the primary elements to be covered in such analysis.  The memorandum focuses on OEA’s role in “major rulemakings” — those with an annual impact of $100 million or more—for which the FCC’s rules require that OEA prepare a “rigorous, economically-grounded cost-benefit analysis.”  The memorandum also observes that components of cost-benefit analysis, such as identifying the ends that a proposed regulation is designed to achieve and the consideration of alternatives, will apply to many other rulemakings.

Canada (CRTC) Announces Emergency Alert Test

The Canadian Radio-television and Telecommunications Commission (CRTC) has announced that on November 25, 2020, all provincial and territorial emergency management organizations will conduct public alerting tests in Canada, except for Nunavut.  As such, test alerts will be distributed on TV, radio and compatible mobile devices connected to a LTE (long-term evolution) or a newer wireless network (5G) in all provinces and territories.

Ongoing testing of the National Public Alerting System provides an opportunity for stakeholders to validate and improve the system’s performance and reliability to ensure it operates as intended in the event of a life-threatening situation.

The messages will be identified as test alerts and will not require Canadians to take action.

For a wireless device to receive a test alert, it must be:

• Connected to an LTE wireless or a newer wireless network (5G) at the time the test alert is issued;
• Wireless public alerting (WPA) compatible; and
• Equipped with a recent Canadian version of its operating software.

If a mobile device meets these conditions and did not receive the test, Canadians should contact their wireless service provider.

To learn more about test alerts, Canadians should visit Alert Ready.

Recent Briefings from Inteserra!

• California Adopts New Enforcement Policy
• FCC Preempts Cities’ Efforts To Require Duplicative Rights-of-Way Fees
• FCC Resolves Remanded Issues in its Restoring Internet Freedom Proceeding; Affirms Prior Decisions
• FCC Revises Mobile Broadband Minimum Lifeline Service Standards; Retains Phase-Down Of Voice Lifeline Support 
• Mississippi Seeks Comment On Caller ID Authentication Rules
• Wisconsin Revises USF Program Assessments

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The Regulatory Mix, Inteserra’s blog of telecom related regulatory activities, is a snapshot of PUC, FCC, legislative, and occasionally court issues that our regulatory monitoring team uncovers each day. Depending on their significance, some items may be the subject of an Inteserra Briefing.