On October 28, the Federal Communications Commission (FCC) unanimously approved new rules to further secure United States communications networks against equipment deemed a national security threat.
The move closes critical loopholes that previously allowed the continued importation and sale of devices from Chinese companies on the FCC's "Covered List," such as Huawei, ZTE, China Telecom Corp., and Hikvision, even after they were identified as security risks. The decision strengthens existing prohibitions and could have significant implications for telecommunications providers navigating an increasingly complex global supply chain.
Closing Critical Loopholes
While the FCC had already banned the introduction of new equipment from companies on its Covered List, the previous rules did not prevent the continued sale and importation of devices that had received authorization before the supplier was designated as a threat.
The new regulations establish a process for the FCC to prohibit the continued importation, marketing, and sale of these previously authorized devices.
Furthermore, the new rules close the "modular transmitter loophole," which means that certain insecure modular transmitters from Covered List entities can no longer be integrated as components within otherwise compliant and authorized devices.
In a statement, FCC Chairman Brendan Carr emphasized the long-standing nature of this threat. "We have known for years that devices produced by Huawei, Hikvision, and other Covered List entities threaten America's national security," he stated. "But up to now, FCC rules have not prevented Covered List providers from continuing to sell previously authorized device models. Nor have those rules applied to a device's component parts. These present loopholes that bad actors could use to threaten the security of our networks."
A Matter of National Security
The FCC's action is part of a broader U.S. government effort to secure the nation's critical infrastructure against foreign adversaries. The move received praise from Capitol Hill, with House Select Committee on the Chinese Communist Party Chairman John Moolenaar stating, "China's telecommunications companies are tools of the Chinese Communist Party and can be used for cybersecurity attacks against our country. The FCC's unanimous action today will close loopholes exploited by China and make our country's infrastructure more secure."
This sentiment was echoed by FCC Commissioner Olivia Trusty, who stressed the collective responsibility in safeguarding the nation's networks. "Protecting the integrity of our nation's communications networks is a matter of national security," she said. "With this item, the Commission once again affirms that when it comes to national security, we cannot afford complacency. The integrity of our networks, and the trust of the American people, depend on it."
Broader Implications for the Telecom Industry
These new regulations complement ongoing efforts like the federal "Rip-and-Replace" program, which provides funding for carriers to remove and replace equipment from untrustworthy suppliers, underscoring the financial and logistical challenges involved in securing networks.
The Commission has also adopted a Further Notice of Proposed Rulemaking seeking comment on additional steps to protect U.S. networks, including potential restrictions on other devices and component parts, indicating that more stringent regulations may be in the works.
