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Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Proposed Rules
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to be marketed or operated in the United States, it must have been authorized for use through one of these two processes.
Some RF equipment has been exempted from the need for an equipment authorization. At this time, the Commissions current equipment authorization rules do not include specific provisions addressing the covered equipment on the Covered List.
Competitive bidding certifications.
The Commission uses competitive bidding to determine which among multiple applicants with mutually exclusive applications for a license may file a full application for the license.
Congress gave the Commission the authority to require such information and assurances from applicants to participate in competitive bidding as is necessary to demonstrate that their application is acceptable. Pursuant to this authority, the Commission has required each applicant to participate in competitive bidding to make various certifications.
III. Discussion In this NPRM, the Commission examines its rules relating to equipment authorization and participation in Commission auctions to help advance the Commissions goal of protecting national security and public safety. This proceeding builds on other actions the Commission recently has taken to protect and secure our nations communications systems.
In other proceedings over the last three years, the Commission has taken several actions to prevent use of equipment and services that pose an unacceptable risk to our nations communications networks. In June 2020, the Public Safety and Homeland Security Bureau PSHSB designated Huawei and ZTE as national security threats to the integrity of communications networks, prohibiting the use of Universal Service Fund USF
support to purchase, obtain, maintain, improve, modify, or otherwise support any equipment or services produced or provided by Huawei and ZTE. See Protecting Against National Security Threats to the Communications Supply Chain Through FCC ProgramsHuawei Designation, PS Docket No. 19351, Order, 35 FCC Rcd 6604 PSHSB 2020
Huawei Designation Order; See Protecting Against National Security Threats to the Communications Supply Chain Through FCC ProgramsZTE
Designation, PS Docket No. 19352, Order, 35 FCC Rcd 6633 PSHSB 2020
ZTE Designation Order. Most recently, PSHSB, as required by the December 2020 Supply Chain Second Report and
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Order Supply Chain Second Report and Order, 35 FCC Rcd 14284, published the Covered List, which identifies covered equipment and services that pose an unacceptable risk to national security or to the security and safety of U.S. persons. Covered List Public Notice; see 47 CFR 1.50002. PSHSB will continue to update that list as appropriate. Although the Commission, through PSHSB, publishes and updates the Covered List, the equipment and services included on the list are identified by specific external sources enumerated in the Secure Networks Act.
47 CFR 1.50002b1iiv.
This Covered List identifies communications equipment and services that pose an unacceptable risk to the national security of the United States or the security and safety of United States persons. The Commission is required to include communications equipment and services on the list based exclusively on determinations made by Congress and by other U.S. government agencies. 47 U.S.C. 1601c. Currently, the list includes equipment and services produced or provided by five entities:
Telecommunications equipment produced or provided by Huawei Technologies Company or ZTE
Corporation, or their respective subsidiaries and affiliates, including telecommunications or video surveillance services produced or provided by such entities or using such equipment; and Video surveillance and telecommunications equipment produced or provided by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company, or their respective subsidiaries and affiliates, to the extent it is used for the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, including telecommunications or video surveillance services produced or provided by such entities or using such equipment. Covered List Public Notice at 3. As noted in this Public Notice, where equipment or services on the list are identified by category, such category should be construed to include only equipment or services capable of the functions outlined in sections 2b2A, B, or C of the Secure Networks Act. 47 U.S.C. 1601b2A
C. Under the Secure Networks Act and the Commissions new rule, part 1, subpart DD, inclusion of equipment and services on the Covered List precludes the use of federal subsidy fundse.g., funds from the Commissions Universal
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Service Programsto obtain or maintain such equipment or services. 47 U.S.C.
1602; 47 CFR 1.50000 et seq.; see Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs, WC
Docket No. 1889, Declaratory Ruling and Second Further Notice of Proposed Rulemaking, 35 FCC Rcd 7821, 782528, paras. 1622 2020.
This NPRM seeks comment on various steps that the Commission could take in its equipment authorization program, as well as its competitive bidding program, to reduce threats posed to our nations communications system. The Commission proposes revisions to its equipment authorization rules and procedures under part 2 to prohibit authorization of any covered equipment on the Covered List. It also seeks comment on whether to revise the rules on equipment currently exempted from the equipment authorization requirements to no longer permit this exemption for such covered equipment. In addition, it seeks comment on whether the Commission should revoke equipment authorizations of covered equipment, and if so under what conditions and procedures.
Finally, we include questions concerning possible revisions to the Commissions competitive bidding procedures that could address certain concerns related to covered equipment and services. Notably, the Commission must periodically update the list . . . to address changes in external determinations . . . and shall monitor the making and reversing of determinations . . . in order to place additional communications equipment or services on the list . . . or to remove communications equipment and services from such list. Secure Networks Act 2d12; see also 47
CFR 1.50003. If one of the enumerated sources named in the Secure Networks Act modifies or deletes a determination, PSHSB will do the same and modify the Covered List accordingly. See 47 CFR
1.50003b if a determination regarding covered communications equipment or service on the Covered List is reversed or modified, directing PSHSB to remove from or modify the entry of such equipment or service on the Covered List, except if any of the sources identified in 47 CFR 1.50002b1i iv maintains a determination supporting inclusion of such equipment or service on the Covered List. The Commission seeks comment on how future updates to the Covered List should affect our proposals in this Notice.

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