In October 2020 and 2021, the FCC adopted a pair of Orders to streamline the processing of applications involving “reportable” foreign ownership that are referred to the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector—commonly known as “Team Telecom.” Team Telecom is tasked with assessing the national security, law enforcement, foreign policy, and trade policy concerns presented by FCC applications seeking licensing authority or approval for cross-border M&A transactions.Continue Reading ALERT: Team Telecom Streamlining Procedures Take Effect
Drew Svor
Drew Svor is a partner in the firm’s Washington, D.C. office and serves as a member of the firm’s Telecom, Space & Satellite, CFIUS and AI Teams, as well as the D.C. office’s recruiting co-chair.
Burners and Backdoors: The FCC’s $16 Million Settlement with TracFone for Breaches of Customer-Facing APIs
Last week, the FCC’s Enforcement Bureau (“Enforcement Bureau”) entered into a consent decree (“Consent Decree”) with prepaid calling provider TracFone Wireless (“TracFone”), addressing TracFone’s failure to adequately safeguard customer proprietary network information (“CPNI”). In the Consent Decree, TracFone agreed to pay a $16,000,000 civil penalty along with a series of comprehensive directives to mitigate network vulnerabilities. Continue Reading Burners and Backdoors: The FCC’s $16 Million Settlement with TracFone for Breaches of Customer-Facing APIs
Soil and Security: The Broadening Scope of CFIUS in Real Estate Transactions
As the Committee on Foreign Investment in the United States (CFIUS) continues to expand its jurisdictional reach, investors, property owners, and landlords should be aware of a growing focus on real estate transactions. Bridging a perceived gap between CFIUS’ mandate to safeguard U.S. national security and foreign investment in the U.S. real estate market, the U.S. Department of Treasury recently issued a Notice of Proposed Rulemaking (NPRM) that would strengthen CFIUS’ jurisdiction over real estate transactions. Specifically, the NPRM would greatly expand the list of military installations that could raise national security concerns, empowering CFIUS to review transactions involving the surrounding real estate; and expand the term “military installation” to encompass a larger number of sensitive facilities. These proposed changes are in response to a recent comprehensive assessment conducted by the Department of Defense regarding its military installations, and reflect the perception that real estate transactions in close proximity to sensitive USG facilities may convey strategic advantages to U.S. adversaries.Continue Reading Soil and Security: The Broadening Scope of CFIUS in Real Estate Transactions
Data Security Is National Security: Inside the FCC Enforcement Bureau’s Latest Crackdown
As the FCC continues to exercise close oversight of the use of Customer Proprietary Network Information (“CPNI”), telecom stakeholders should also be sensitive to potential data security obligations under any relevant mitigation agreements with “Team Telecom,” the collection of Executive Branch agencies tasked with reviewing and resolving any national security implications related to foreign ownership of telecom providers.Continue Reading Data Security Is National Security: Inside the FCC Enforcement Bureau’s Latest Crackdown
Know Thy Neighbor as Thyself: CFIUS Considerations in Commercial Real Estate Transactions
While many venture capitalists and private equity sponsors are aware the Committee on Foreign Investment in the United States (“CFIUS”) has authority to review inbound investments in certain sensitive U.S. industries, many transaction parties may be unaware of CFIUS’s jurisdiction to also review the national security risks presented by real estate transactions involving foreign persons. Because real estate transactions do not trigger CFIUS’s mandatory filing requirements, it is uncommon for transaction parties to proactively seek CFIUS review of these deals.Continue Reading Know Thy Neighbor as Thyself: CFIUS Considerations in Commercial Real Estate Transactions
FCC to Strengthen Equipment Authorization Process to Protect U.S. National Security
The FCC – in the latest iteration of its expanding role as a regulator in the national security space – recently adopted a Notice of Proposed Rulemaking (“NPRM”) proposing to fortify the security of the wireless supply chain by imposing heightened requirements on the Telecommunication Certification Bodies (“TCBs”) and Measurement Facilities (“Test Labs”) that approve devices marketed and sold in the U.S.Continue Reading FCC to Strengthen Equipment Authorization Process to Protect U.S. National Security
Dialing Up Accountability: FCC’s Warning Shot to Mobile Network Operators on CPNI
Key Takeaways: The Federal Communications Commission (“FCC”) sent a resounding message to the telecommunications industry: the era of lax CPNI enforcement is over.
- Mobile network operators (MNOs), mobile virtual network operators, Internet Service Providers, and Voice-Over-IP providers, and other operators subject to the FCC’s CPNI rules should be aware of the FCC’s expansive view on the kinds of data subject to the CPNI rules.
Continue Reading Dialing Up Accountability: FCC’s Warning Shot to Mobile Network Operators on CPNI
Treasury Department Proposes to Sharpen the Teeth of CFIUS Enforcement
Key Takeaways: The Treasury Department is seeking to equip CFIUS with greater enforcement and oversight authority. These new powers include the ability to request more information from transaction parties and also to assess more significant penalties—in some cases, potentially greater than the transaction value—against companies who fail to comply with mandatory filing requirements or violate mitigation agreements.Continue Reading Treasury Department Proposes to Sharpen the Teeth of CFIUS Enforcement
Enforcement Advisory: The FCC’s Enforcement Bureau Continues to Closely Review Provider Compliance with Affordable Connective Program Rules
As the battle for the future of the Affordable Connectivity Program (ACP) continues on Capitol Hill, and the FCC prepares for the looming shutdown of the program, providers should be aware that the FCC’s Enforcement Bureau (“Enforcement Bureau”) continues to investigate—and issue forfeitures—related to noncompliance with program rules, particularly around subscriber onboarding and usage of the ACP benefit by consumers.Continue Reading Enforcement Advisory: The FCC’s Enforcement Bureau Continues to Closely Review Provider Compliance with Affordable Connective Program Rules
ALERT: FCC Seeks to Eliminate Digital Discrimination
On November 20, 2023, the Federal Communications Commission (“Commission”) released a Report and Order and Further Notice of Proposed Rulemaking (“Order”) adopting final rules to facilitate equal access to broadband and address digital discrimination.[1] This decision will be of particular importance to entities that provide, facilitate, or affect consumer access to broadband, including both terrestrial and satellite broadband providers irrespective of the technology used to deliver the broadband service. A Further Notice of Proposed Rulemaking (“FNPRM”) accompanies the Order, seeking additional comment on matters pertaining to the implementation of section 60506 of the Infrastructure Investment and Jobs Act.[2] The final rules and FNPRM are summarized below:Continue Reading ALERT: FCC Seeks to Eliminate Digital Discrimination
The Biden-Harris Administration Releases National Spectrum Strategy
On November 13, 2023, the Biden-Harris Administration issued a National Spectrum Strategy (the Strategy) and Presidential Memorandum on the modernization of U.S. spectrum policy. The Strategy, developed by the National Telecommunications and Information Administration (NTIA) in close coordination with the Federal Communications Commission (FCC) and other Executive Branch agencies, seeks to “guide decisions about how to allocate limited spectrum resources and ensure these decisions are made through a rigorous, transparent process.” The Strategy represents the Administration’s attempt to chart a “whole-of-Nation” approach to achieve national spectrum policy objectives.Continue Reading The Biden-Harris Administration Releases National Spectrum Strategy