FCC Chairman Brendan Carr has announced that the commission has moved forward with two proposals to protect America’s national security and, in his words, “address the serious threats that foreign adversaries and other bad actors pose to our communications networks.”
At the open meeting on Thursday, May 22, commissioners unanimously approved a rule focused on blocking “untrustworthy actors” from interfering with the U.S. communications sector. In a separate proposal, the commission now looks to identify possibly-malicious foreign stakeholders.
In this story, we’ll take a look at the new rule and the FCC’s next course of action.
Banning “Bad Labs”
Before any electronic devices that emit radio frequencies — such as smartphones, computers, fitness trackers or baby monitors — can be imported or sold in the U.S., they must be tested at a lab to ensure compliance with FCC regulations.
Each year, private entities — known as test labs or telecommunication certification bodies (TCBs) — test tens of thousands of these devices and certify that they comply with various FCC rules. Historically, these labs focused on compliance with technical rules, like power levels and spectrum bands.
The FCC said approved accreditation bodies then assess the test labs for competency and impartiality. “But the closer we looked at these labs, the clearer it became that they create a potential loophole in our national security efforts,” said Carr in a statement.
Now, the newly adopted rules look to assure that test labs and certification bodies “do not have ownership interests that present national security risks, including the risk that they would do the bidding of a foreign adversary,” the FCC said in a meeting summary. Prior to these rules, the commission said its eligibility criteria for telecom certification bodies, accreditation bodies and some test labs were based primarily on technical competence, not trustworthiness.
“This order will eliminate this type of risk,” said Carr. “It establishes a rule that prohibits test labs from participating in the FCC’s equipment authorization process if they are owned, controlled or directed by entities that pose national security risks. And this restriction will apply to foreign adversary governments, like China.
“After all, these labs provide a gateway into the U.S. telecommunications infrastructure,” said Carr. “And it is not hard to imagine that an unreliable lab — one beholden to a foreign adversary — could sign off on insecure gear entering the U.S. market.”
The FCC said it wants to do more than confirm the trustworthiness of overseas labs; it seeks to boost the United States’ capacity to test and certify imported electronics locally. The FCC estimates that, today, roughly 75% of all electronics are tested in labs located inside China. “That’s why we will be seeking comment on ways to reshore America’s testing capacity,” said Carr.
Identifying Foreign Stakeholders
The commission also voted to begin a process of formally identifying whether or not license-holders in the communications sector are owned by foreign adversaries.
While the FCC does collect foreign ownership information from regulated entities, Carr said there are gaps in the information collection process.
“Specifically, the FCC does not have a uniform approach for identifying foreign adversaries that may hold an interest in an FCC license or authorization,” said Carr in his statement. “Nor has our approach taken into account the various ways that foreign adversaries can exercise control.”
He continued: “With today’s rulemaking, we are seeking comment on obtaining the information necessary for the FCC to publish a list of all regulated entities that are subject to the control of a foreign adversary. As we do so, we know that there are many different paths forward and the public’s input will prove critical to the commission’s success.”
Earlier this year, Carr established the FCC’s Council for National Security to counter perceived foreign threats — particularly threats posed by China and the Chinese Communist Party, according to an FCC statement.
[Related: “Carr Defends FCC Deregulation, Spectrum Push in House Hearing“]
