FCC proposes ban on electronic products and devices made by Huawei and other Chinese companies

On June 18, the Federal Communications Commission (FCC) proposed rules banning electronics made by entities on its Covered List, namely Huawei Technologies Corporation, ZTE Corporation, Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company and Dahua Technology Company.  The proposed equipment ban would encompass not only telecommunications equipment but also devices such as video surveillance equipment – for example, security cameras – and other devices subject to the FCC’s equipment authorization rules.

Specifically, the FCC seeks comment on proposed rules that would:

• Prohibit all future authorizations for equipment on the Covered List, including equipment subject to the FCC’s certification and Supplier’s Declaration of Conformity processes
• No longer permit an exemption from the equipment authorization requirements for equipment on the Covered List
• Revoke authorizations that previously have been granted for equipment on the Covered List and
• Require applicants who wish to participate in FCC auctions to certify that their bids do not and will not rely on financial support from any entity that the FCC has designated as a national security threat.

In addition, the FCC seeks comment on how the agency can leverage its equipment authorization program to help address the particular security risks that are associated with IoT devices.  Once the item is published in the Federal Register, the deadline for comments will be 30 days after publication, and the deadline for reply comments will be 60 days after publication. 

Commissioner Brendan Carr noted that these proposed rules would expand the FCC’s focus beyond just providers that receive USF support and would address any “insecure equipment.”  The Consumer Technology Association (CTA) warned that the proposed rules “could have unintended consequences” after questioning the FCC’s legal authority to regulate device security.  CTA also added that the proposed changes “could be disruptive and impose substantial burdens on manufacturers well beyond the few covered entities.”

If you have questions or would like more information about this matter, please contact any member of our Telecommunications team.