FCC to Consider Prohibiting “Covered List” Entities from Participation in Agency’s Equipment Authorization Program

On May 2, 2024, the Federal Communications Commission (FCC) released a draft Notice of Proposed Rulemaking (NPRM) for consideration at the agency's May 23 Open Meeting that proposes to "prohibit from recognition by the FCC and participation in [its] equipment authorization program, any [Telecommunications Certification Body (TCB)] or test lab in which an entity identified on the Covered List has direct or indirect ownership or control." The NPRM also would also direct of FCC's Office of Engineering and Technology to "suspend the recognition of any TCB or test lab directly or indirectly owned or controlled by entities identified on the Covered List, thereby preventing such entities from using their owned or controlled labs to undermine our current prohibition on Covered Equipment."

The NPRM would seek comment on "whether and how the Commission should consider national security determinations made in other Executive Branch agency lists in establishing eligibility qualifications for FCC recognition of a TCB or a test lab in our equipment authorization program." It also would "propose that the prohibition would be triggered by direct or indirect ownership or control of 10% or more" and that "TCBs and test labs would be required to report any entity that holds a 5% or greater direct or indirect equity and/or voting interest." The NPRM would also "propose to collect additional ownership and control information from TCBs and test labs" in order to implement the proposed national security prohibition.

The proposal follows a number of other recent FCC actions undertaken to address national security concerns pertaining to communications networks and devices. FCC Chairwoman Jessica Rosenworcel and Commissioner Brendan Carr recently announced their support for the proposal.