Federal Communications Commission	DA 20-1037


DA 20-1037
Released:  September 4, 2020

WIRELINE COMPETITION BUREAU AND OFFICE OF ECONOMICS AND ANALYTICS RELEASE RESULTS FROM SUPPLY CHAIN SECURITY INFORMATION COLLECTION
Universal Service Fund Support Recipient Networks with Huawei and ZTE Equipment and Services Identified
WC Docket No. 18-89

By this Public Notice, the Wireline Competition Bureau (WCB) and the Office of Economics and Analytics (OEA) release public results from the Supply Chain Security Information Collection, which was conducted in response to the Commission’s 2019 Supply Chain Order. See Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs, WC Docket No. 18-89, Report and Order, Further Notice of Proposed Rulemaking, and Order, 34 FCC Rcd 11423, 11481-82, para. 162 (2019) (2019 Supply Chain Order).  In the 2019 Supply Chain Order, the Commission initially designated Huawei Technologies Company (Huawei) and ZTE Corporation (ZTE), and their affiliates, subsidiaries, and parents, as covered companies for the purposes of this prohibition. Id. at 11442, para. 47; id. at 11447, para. 59.  On June 30, 2020, the Public Safety and Homeland Security Bureau released final designation orders designating Huawei and ZTE as covered companies for the purposes of the Commission’s rules.  See generally Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs – Huawei Designation, PS Docket No. 19-351, Order, DA 20-690 (PSHSB Jun. 30, 2020); Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs – ZTE Designation, PS Docket No. 19-352, Order, DA 20-691 (PSHSB Jun. 30, 2020).
 
In the 2019 Supply Chain Order, the Commission directed WCB and OEA to conduct an information collection to determine whether Eligible Telecommunications Carriers (ETCs), or their affiliates and subsidiaries, own equipment or services from Huawei Technologies Company (Huawei) and ZTE Corporation (ZTE), or their respective subsidiaries, parents, or affiliates.  The Order also directed WCB and OEA to collect information about the nature of the equipment and services, the costs associated with purchasing and/or installing such equipment and services, and the costs associated with removing and replacing such equipment and services. 2019 Supply Chain Order, 34 FCC Rcd at 11482, para. 165.   
  
The 2019 Supply Chain Order further directed WCB, after receiving and evaluating ETC submissions, to consider making this information public.  The Commission directed staff to consider the “potential confidentiality of any information submitted, particularly where public release of such information could raise security concerns . . .” but also directed that “the public interest in knowing whether a carrier uses equipment or services from Huawei or ZTE would significantly outweigh any interest the carrier would have in keeping such information confidential.” Id. at 11482, para. 166. 
  
Consistent with the 2019 Supply Chain Order, attached is a list of ETCs that have reported the presence or use of Huawei or ZTE equipment and/or services in their networks, or in the networks of their affiliates or subsidiaries.  Based on information WCB and OEA collected through the information collection, all filers report it could cost an estimated $1.837 billion to remove and replace Huawei and ZTE equipment in their networks.  Of that total, filers that appear to initially qualify for reimbursement under the Secure and Trusted Communications Networks Act of 2019 report it could require approximately $1.618 billion to remove and replace such equipment. For purposes of this estimate, staff did not include the costs associated with educational entities that have not yet shown that they are “providers of advanced communications” nor those providers that appear to have more than 2,000,000 customers.  See Secure and Trusted Communications Networks Act of 2019 § 4(b) (codified at 47 U.S.C. § 1603(b)).
  WCB and OEA note that other providers of advanced communications may not have participated in the information collection and yet still be eligible for reimbursement under the terms of that Act.  WCB and OEA are continuing to review the cost data submitted in the Supply Chain Security Information Collection as part of our ongoing proceeding, which will support the Commission’s efforts to implement the Secure and Trusted Communications Networks Act of 2019, including establishing the Secure and Trusted Communications Reimbursement Program. Pub. L. No. 116-124, 133 Stat. 158 (2020) (codified as amended at 47 U.S.C. §§ 1601–1609).  See Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs, WC Docket No. 18-89, Declaratory Ruling and Second Further Notice of Proposed Rulemaking, FCC 20-99, paras. 54-55 (July 16, 2020).

For additional information, visit the FCC’s Supply Chain Data Collection webpage at www.fcc.gov/supplychain, or contact Brian Cruikshank at (202) 418-3623 or via email at Brian.Cruikshank@fcc.gov. 


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