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Federal Register / Vol. 86, No. 166 / Tuesday, August 31, 2021 / Rules and Regulations
automatically process administrative updates once filed.
51. Notifications of Changes in Ownership. Recognizing that the Reimbursement Program will be administered over multiple years and changes in ownership may occur, the Bureau adopts its proposal to adapt the online filing system to account for changes in ownership, including changes due to bankruptcy. Specifically, the Bureau will institute a streamlined process whereby, post-consummation, the recipient of record will file a notification signed by both parties to the transaction that includes an explanation of the ownership changes. In the event of an involuntary change of control and/
or ownership, such as, but not limited to, the appointment of a trustee in bankruptcy or a receiver, the process shall include a mechanism for a rightful recipient to file the notification without the signature of the other party to the transaction upon a showing of appropriate documentation regarding the change of control and/or ownership.
The Bureau, with the assistance of the Reimbursement Program Fund Administrator, will determine the amount of the funding allocation remaining, i.e., the amount not yet claimed and disbursed through the reimbursement claim process, and how to handle transactions involving the acquisition of discrete network components, e.g., the sale of a portion of the network and not the entire network. Commenters support this approach. The Bureau notes, however, that while it is not requiring prior approval for new owners to participate in the Reimbursement Program, the new owners would still have to be eligible to participate in the program to receive funding under the Commissions rules.
Providers with more than 10 million customers are not eligible to participate in the Reimbursement Program.
52. Consistent with the Secure Networks Act, the Commissions rules require Reimbursement Program participants to complete the removal, replacement, and disposal process within one year from the initial disbursement of funds. The initial disbursement is deemed to occur on the date on which the Commission first distributes reimbursement funds to the recipient. Participants must file to receive their initial disbursement within one year of receiving the funding allocation approval.
53. Both the Secure Networks Act and the Commissions rules authorize extensions of the one-year removal, replacement, and disposal term.
Specifically, under 1.50004h1 of the Reimbursement Program rules, the
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Commission may grant a general extension of the one-year term by a period of six months to all Reimbursement Program recipients if the Commission: 1 Finds the supply of replacement communications equipment or services needed by the recipients to achieve the purposes of the Reimbursement Program is inadequate to meet the needs of the recipients; and 2 provides notice and detailed justification for granting the extension to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate. In addition, the Bureau may grant individual extensions of time for a period not to exceed six months on a case-by-case basis. The Commission has interpreted the Secure Networks Act to allow grant of multiple individual extensions of time to a participant. To grant an extension, the Bureau must find that, due to no fault of the recipient, such recipient is unable to complete the permanent removal, replacement, and disposal by the end of the term.
54. Nokia requested a blanket 6month extension of time, noting that many applicants will have difficulty adhering to a one-year deadline for removal, replacement, and disposal because, under normal circumstances, the process would take approximately one to three years. Additionally, Nokia notes that a high number of carriers attempting to replace equipment during the same period of time may delay the process. The Competitive Carriers Association CCA also requested a blanket 6-month extension, raising a similar concern in its comments, recognizing that carriers are managing labor shortages, including limited availability of skilled engineers and 12
tower crews, and an extension will give carriers a more realistic opportunity to navigate staffing challenges. Copper Valley Wireless, Inc. Cooper Valley Wireless asserts that the unique issues facing Alaskan providers will result in multiple extension requests. Thus, Copper Valley Wireless requests successive blanket extensions for Alaskan providers.
55. The Bureau finds these requests for an extension of the term for all future participants are outside the scope of the Reimbursement Process PN, and it, therefore, declines to address these requests. In addition, the Bureau finds it premature to consider a general extension before the Reimbursement Program is even launched and any removal, replacement, and disposal terms are established. Granting an across-the-board extension at this
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juncture is counter to Congress intent of having a one-year term.
56. In addition, some commenters have expressed concern that the Commission appears to favor ORAN
replacement options and requests that the Commission not grant an applicants extension request solely because of the replacement choice. As the Bureau did not seek comment on proposals related to granting term extensions, it finds these comments are also outside the scope of the Reimbursement Process PN.
These comments more accurately relate to the 2021 Supply Chain Order, where the Commission said that some replacement options, such as ORAN or virtual RAN, may require additional time for system integration. While the Bureau recognizes it may take longer to implement certain technological solutions, that is only one factor among many that could justify an extension.
Regardless, the Bureau disagrees that the Commission has demonstrated a preference for ORAN technology solutions as compared to any other solution.
57. To help mitigate against waste, fraud, and abuse, and consistent with the Secure Networks Act, the Commission required recipients to submit status updates, spending reports, and final certifications and updates. The Bureau takes this opportunity to reiterate these requirements as set forth in the Secure Networks Act and the Commissions rules.
58. Status Updates. The Secure Networks Act requires that not less frequently than once every 90 days beginning on the date on which the Commission approves an application for a reimbursement under the Program, the recipient of the reimbursement shall submit to the Commission a status update on the work of the recipient to permanently remove, replace, and dispose of the covered communications equipment or services. The Secure Networks Act also provides that not earlier than 30 days after the date on which the Commission receives a status update, the Commission shall make such status update public on the website of the Commission.
59. In the 2020 Supply Chain Order, the Commission required recipients to file the first status updates within 90
days of receiving their funding allocations. In the status updates, recipients are required to report on the efforts undertaken and challenges encountered in permanently removing, replacing, and disposing of their covered communications equipment or services. Recipients shall also report in detail on the availability of replacement equipment in the marketplace so the
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