Jimm Phillips

The FCC Public Safety Bureau denied ZTE’s petition for reconsideration of the bureau’s June 30 order designating the Chinese telecom equipment maker as a threat to U.S. national security. The order, which also covers Huawei, bars both companies from participating in the USF (see 2007160051). Huawei also sought reversal (see 2007310048). The FCC denied ZTE’s argument that the FY 2019 National Defense Authorization Act and the Secure and Trusted Communications Networks Act (HR-4998) limit “authority to implement a prohibition on USF support for ZTE equipment. ZTE has previously raised this argument and we find no grounds on which to reconsider it here.” The company “does not dispute critical facts underlying” the ban, “and those uncontroverted facts, standing alone, are enough to sustain” it, the bureau said. It reviewed “the totality of the evidence, which included legal and political analysis from Congress and the Executive Branch, Chinese law experts, as well as evidence of security threats provided by allied intelligence services and outside cybersecurity experts.” The bureau “determined that either directly [through] the application of the Chinese National Intelligence Law, or indirectly through the application of political pressure, Chinese companies like ZTE are required to cooperate with intelligence agencies by providing customer information and network traffic information.” It said ZTE “has substantial ties to the Chinese government and its military” apparatus. “We continue to find that vulnerabilities and cybersecurity risks plague ZTE equipment,” the bureau said. It “also took into account ZTE’s record of knowingly violating U.S. law, obstructing U.S. investigations, and making false statements to U.S. authorities even after entering a guilty plea for violating U.S. trade sanctions.” The gearmaker didn’t comment. The denial is “another important step in our ongoing efforts to protect U.S. communications networks from security risks,” said FCC Chairman Ajit Pai. He noted plans for commissioners to vote Dec. 10 on rules (see 2011190059) to help U.S. telecom companies replace suspect network equipment proposed in HR-4998. “Now it is more vital than ever that Congress appropriate funds so that our communications networks are protected from vendors that threaten our national security,” Pai said. Lawmakers are pushing to allocate $1.6 billion-$1.8 billion (see 2009140062).

Two top Senate Republicans told us they expect language aimed at hindering Ligado’s L-band plan rollout to make it into a conference version of the FY 2021 National Defense Authorization Act currently under negotiation. What it will ultimately look like remains uncertain. The House and Senate passed NDAA versions (HR-6395/S-4049) earlier this year that included anti-Ligado provisions (see 2007200052). Iridium, National Emergency Number Association and other critics of the proposal urged leaders of the Armed Services committees to push for all Ligado language from the two versions to be kept in a combined NDAA bill.

President-elect Joe Biden’s incoming administration is likely to boost prospects for a major infrastructure spending package, supporters of increased federal broadband spending told us. They welcome that change after hopes for progress were dashed during President Donald Trump’s administration. Lawmakers in both parties are hopeful but believe questions about how to pay for the additional infrastructure will remain a major sticking point amid expectations there will still be divided control of Congress (see 2011040052).

The three Republicans vying to succeed House Commerce Committee ranking member Greg Walden of Oregon told us they intend to largely maintain his approach to telecom policymaking during the next Congress, which is expected to include more debate on net neutrality. Walden announced his retirement plans last year, sparking debate about Communications Subcommittee Republicans’ future path (see 1911260048).

Senate Commerce Committee GOP leaders are eyeing a vote to advance FCC nominee Nathan Simington to the full chamber amid likely uniform Democratic opposition and lingering uncertainties about whether there’s unanimous GOP support. FCC Republicans, meanwhile, sidestepped questions about whether they will cooperate with President-elect Joe Biden’s transition, given objections from President Donald Trump. Chairman Ajit Pai announced a national-security-heavy agenda Wednesday for commissioners' Dec. 10 meeting but avoided saying he’s acquiescing to Democrats’ calls for him to stop work on major items (see 2011180065).

Sen. Marsha Blackburn, R-Tenn., “looks forward to voting for” FCC nominee Nathan Simington, her chief of staff, Charles Flint, told us. She raised concerns in late October about his preparedness for an initial phone conversation with her (see 2011020001). President Donald Trump cited Blackburn in a tweet urging Senate Commerce Republicans to support Simington just before his Tuesday Senate Commerce confirmation hearing (see 2011100070). She has since faced pressure from other conservative organizations, including Revolver News.

Incompas CEO Chip Pickering is hopeful this Congress enacts FY 2021 funding and a COVID-19 aid bill, despite partisan rancor. Group officials told a Thursday webinar they’re monitoring whether the Senate confirms FCC nominee Nathan Simington, plus the impact of a change to a majority-Democrat commission after President-elect Joe Biden’s inauguration.

Sen. Richard Blumenthal, D-Conn., threatened Tuesday to place a hold on FCC nominee Nathan Simington amid dissatisfaction with his refusal to commit during a Commerce Committee hearing to recuse himself from participating in the rulemaking on its interpretation of Communications Decency Act Section 230 and his answers on other matters. Senate Commerce Chairman Roger Wicker of Mississippi and other Republicans were supportive of Simington. The nominee's confirmation prospects were expected before the presidential election to be jeopardized if Democrat Joe Biden won (see 2011020001).

The Senate Appropriations Committee proposed increases in the FY 2021 budgets for the FCC, NTIA, Patent and Trademark Office and National Institute of Standards and Technology but would leave funding for the FTC and CPB level with FY 2020. The committee’s proposed funding for the FCC to implement the Broadband Deployment Accuracy and Technological Availability Act, a broadband mapping law (S-1822), fell short of what the commission and others sought. Senate Appropriations released draft versions of its 12 appropriations bills Tuesday, before conference negotiations with House leaders on compromise FY 21 funding measures. Congress must either pass appropriations measures or another continuing resolution to extend government funding before the existing CR expires Dec. 11 (see 2010010041).

House Commerce Committee Chairman Frank Pallone of New Jersey and other Democratic committee leaders are expected to ask the FCC to stand down work on any further controversial matters during a potential transition from President Donald Trump’s administration if Democratic nominee Joe Biden’s leads hold in several marginal states, communications sector observers told us. No similar call from Senate Commerce Committee Democrats is expected, since the party doesn’t have control of the chamber, and the majority in the next Congress remains in doubt (see 2011050056), lobbyists said.