On January 3, 2020, the Federal Communications Commission (FCC) published in the Federal Register a final rule [WC Docket No. 18–89, PS Docket Nos. 19– 351, 19–352; FCC 19–121; FRS 16315], effective on publication, that prospectively prohibits the use of Universal Service Fund (USF) funds to purchase or obtain any equipment or services produced or provided by a covered company posing a national security threat to the integrity of communications networks or the communications supply chain. In doing so, the Report and Order initially designates Huawei Technologies Company (Huawei) and ZTE Corporation (ZTE) as covered companies for purposes of the rule and establish a process for designating additional covered companies in the future. To support the Commission’s future efforts to protect the communications supply chain, the Information Collection Order (Order) directs the Wireline Competition Bureau (WCB) and Office of Economics and Analytics (OEA), in coordination with USAC, to conduct an information collection to determine the extent to which potentially prohibited equipment exists in current networks and the costs associated with removing such equipment and replacing it with equivalent equipment. Comments on the initial designations of Huawei and ZTE as covered companies are due on or before February 3, 2020.
