NTIA’s waiver for broadband expansion poses national security risks

The decision to exempt optical pluggables from the Build American, Buy American requirement to expand broadband internet access across the country could pose a national security threat, a bipartisan group of lawmakers said in a letter.

Sen. John Cornyn (R-Texas), along with Rep. Susan Wild (D-Penn.) and  Sens. Bob Casey (D-Penn) and John Fetterman (D-Penn), sent a letter to the National Telecommunications and Information Administration expressing their concern about the waiver that allows the use of foreign-made products for the middle mile section of the Broadband Equity, Access, and Deployment (BEAD) Program.

“While the goal of expanding and enhancing our nation’s broadband infrastructure is commendable, the decision to waive the BABA requirement for optical pluggables in the Middle Mile raises several significant issues that must be addressed,” the lawmakers wrote.

“Specifically, we are concerned that the waiver could inadvertently facilitate the use of components sourced from China or other countries of concern, thereby allowing these nations to benefit from U.S. taxpayer dollars. This not only undermines the intent of the Buy America provisions but also poses a potential national security threat.”

The BABA Act is new legislation enacted as part of the Bipartisan Infrastructure Law, which President Joe Biden signed in November 2021. The statute ensures that government-funded infrastructure projects use products manufactured in the United States, allowing the government to support domestically produced products and reducing dependency on foreign suppliers. The Broadband Equity, Access, and Deployment Program, or BEAD, is part of the Bipartisan Infrastructure Law, which provides $42.45 billion to expand internet access across the U.S.

While the main purpose of the BABA act is to give preference to domestic companies, the final BEAD BABA preference released earlier this year doesn’t exclude foreign-made components for the middle mile — the network infrastructure that connects the core infrastructure with the local networks to deliver internet to homes and businesses.

“The inclusion of optical pluggables sourced from other countries with known cyberespionage capabilities in critical broadband infrastructure could expose our networks to attack. Given the strategic importance of broadband infrastructure to national security, economic security and public safety, it is imperative that we minimize any risk of foreign interference,” the lawmakers wrote.

In addition, the Secure and Trusted Communications Act enacted in 2020 established the Secure and Trusted Communications Networks Reimbursement Program, which allows small communications providers to get rid of prohibited equipment or services from their networks and replace them with more secure communications equipment.

The lawmakers said allowing companies to use foreign-sourced components to deliver the Internet across the country would “counteract the efforts and investment made in securing communications networks.”

“We urge the NTIA to reconsider the Buy America waiver for optical pluggables and to implement stringent measures to ensure that all components that handle user data or have the potential for exploitation by state actors in the BEAD program are from trusted and secure suppliers,” the lawmakers said.

The Department of Commerce in its final waiver notice said it has determined that the U.S. doesn’t produce enough construction materials and certain manufactured products to meet the needs of the BEAD program.

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