FCC Supply Chain NPRM Likely to Get 4-0 Vote
The FCC’s draft supply chain NPRM, set for a vote its Wednesday meeting (see 2101270060), is likely to get unanimous approval with few changes, and industry officials told us. Unanimity is especially likely since the focus is to reconcile the language in the reimbursement program with that in the combined FY 2021 appropriations and COVID-19 aid omnibus bill that Congress approved in December, they said. This meeting is the first under acting Chairwoman Jessica Rosenworcel.
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The NPRM proposed changes to current rules, approved in late 2019 (see 1911220033), to align them with the December law (see 2012220061). It would reconcile differences between that law and 2019's Secure and Trusted Communications Networks Act, approved in March (see 2003040056).
The comments filed will likely focus on the size of the companies that will receive support, due to concerns money could run out, and on revised deadlines for when gear had to be acquired to be eligible for replacement, said Telecommunications Industry Association Director-Government Affairs Colin Andrews. He doesn’t expect significant changes to the draft and said the vote at her first meeting leading the agency shows the issue is significant to Rosenworcel.
“The NPRM as drafted is fine , but we will be commenting … on various aspects of the questions the commission has raised,” Rural Wireless Association General Counsel Carri Bennet told us. RWA members are expected to seek reimbursement, and it's active in the proceeding. The Competitive Carriers Association is “pleased that the FCC is continuing to move forward in implementing the rip and replace program,” a spokesperson said. Industry officials said because the draft is tied to implementing legislation, the FCC likely has little wiggle room.
The draft proposes to raise the cap on eligibility for participation in the reimbursement program to providers of advanced communications services with 10 million or fewer customers, up from 2 million in current rules. “We seek comment on this proposal and any implications that it may have for participation in the Reimbursement Program,” the draft says.
The FCC would also modify the acceptable use of reimbursement program funds to include “only the removal, replacement, and disposal of equipment and services” subject to orders designating Huawei and ZTE as covered companies, also consistent with the December law. That shifts the focus from funding equipment and services eligible for reimbursement from the equipment and services on an FCC “Covered List” to “the equipment and services subject to the Designation Orders,” the draft says. The agency asks whether other interpretations of the December law are possible. The commission would seek comment on a proposal to modify rules to let reimbursement program recipients use the funds to remove and replace equipment or services obtained on or before June 30, 2020.
The FCC proposes to adopt a revised prioritization regime in case demand for reimbursement exceeds the money available. “We propose to first allocate funds to approved applications with 2 million or fewer customers,” followed by “accredited public or private non-commercial educational institutions providing their own facilities-based educational broadband services.” After that, all other applicants would receive funds. The draft asks about rules for further prioritizing funding within the three categories, noting that issue wasn’t addressed by Congress in the law.