Transcripts For CSPAN3 Hearing On 5G Supply Chain Wireless

The Senate Committee is chaired by roger wicker of mississippi. Good morning, and welcome to the newly restored Committee Room of the commerce committee. I want to thank senator blunt of the rules committee and the architect of the capitol for their effort in restoring this room and welcome all of you to a history making hearing. The first hearing in the newly opened room. Today the committee convenes to discuss the security and integrity of the telecommunications supply chain, that is to say the equipment and services that make up a Communications Network. I welcome our distinguished panel of witnesses and thank them for appearing. Today we will hear from mr. Steven berry, president and chief executive office of the competitive carriers association, mr. Jason boswell, head of Security Network Product Solutions at ericson, ms. Asha katie, Corporate Vice president and general manager of next generation and standards at intel, mr. Mike murphy, chief technology officer, americas at nokia and dr. James lewis sr. Vice president and director of the Technology Policy program at the center for strategic and international studies. Closing the Digital Divide and positioning the United States to win the global race to 5g are priorities for this committee. Over the past several months we have been discussing the wide ranging economic and social benefits that Broadband Connectivity has delivered to communities across the country. Weve also discussed the promise of 5g networks to build upon these past advances and create new opportunities. Our continued ability to connect all americans and provide access to next Generation Technology will depend in large part on the security of the Nations Communications infrastructure. Over the past few years, the United States government, intelligence officials, and International Allies have determined that Telecommunications Equipment from certain vendors such as huawei and zte poses a National Security risk. Foreign adversaries and enemies of the United States have the capability of using this compromised equipment to spy on americans, steal our intellectual property, and otherwise disrupt our way of life and economic wellbeing. Today congress and the Trump Administration have taken a number of actions to address these security threats and protect our networks and devices from hostile exploitation. These actions include banning the use of huawei and zte components in government systems, prohibiting the use of universal Service Funds to Purchase Communications equipment and services from huawei and zte and adding huawei and its affiliates to the entities list. Most recently, Congress Passed the secure and trusted Communications Network act. When signed into law by President Trump in just a few days, this law will establish a critical rip and replace program for small and Rural Telecommunications operators to remove compromised equipment from their networks and replace it with components from trusted suppliers. While this is a meaningful step forward in safeguarding the security of the nations Communication Systems, the unfortunate reality is that our networks have already been compromised by foreign adversaries. We are seeing more reports that huawei can covertly access mobile phone networks around the world. At the same time, some of our close allies are fwrantgranting Huawei Access to their Communication Systems. These are troubling developments. We need to do more to shore up our own Network Defenses against hackers and statesponsored actors, especially in our nations rural and underserved communities. This effort will require the development of a comprehensive strategy to secure the telecommunications supply chain. Currently huawei maintains the Largest Global market share of Telecommunications Equipment. The absence of a viable and affordable american or european alternative for end to end Telecommunications Components including radios, chips, software software, and devices has enabled huawei to increase its global influence. At a time of rising Global Demand for 5g equipment, i hope witnesses will discuss what more congress and the administration can do to support trusted suppliers, invest in new technologies and expand the domestic market for 5g network components. There are a number of International Standards setting organizations such as the Third Generation Partnership Project or 3gpp and the International Telecommunications union that are developing technical standards for 5g. U. S. Participation in these organizations is also key to a secure telecommunications supply chain. Todays hearing is an opportunity for witnesses to discuss how to increase u. S. Engagement in the Standards Development process. This will help ensure american Technical Expertise and priorities are considered in the development of next generation technologies. Finally, i hope we will learn about how the Telecommunications Industry can improve its cyber hygiene meaning what best Practices Companies could adopt to mitigate risks to vulnerable supply chains. I also hope we will learn about what more the fcc can do to secure Legacy Networks and manage security risks in the transition to 5g. Let me again welcome our witnesses and thank them for joining us, and i recognize my friend and Ranking Member senator cantwell. Thank you for holding this important hearing. I too want to thank senator blunt for his work in getting us back into our normal hearing room. Todays hearing, obviously we have a lot of great witnesses here, and thank you for traveling to be here. Weve heard a lot about 5g networks and how its going to revolutionize everything from sectors of our economy to advancements, but none of this will happen unless we make this system secure. Yesterday we had a hearing as part of our review of the budget for energy, and we were focusing on our nations grid and the fact that just recently an attack on our grid in the west was the first time an actor had actually brought down a power system for more than 12 hours. So its no longer just people searching around and looking at our power plants. Now actors are starting to bring what is essential services to a halt, and these are important issues for us to address throughout our system. So far the discussion by policymakers about how to keep Unsecure Networks and equipment out of our Domestic Networks has been the focal point, but obviously eliminating the threat posed by these equipment is the highest priority. We cant just simply look at that issue. We need to make sure that we are a loud voice across the globe for no Government Back doors to any Security Network. By mitigating this, we are helping to communicate what needs to be done. I believe its an imperative that the u. S. And its allies foster a truly secure diverse, and reliable supply chain for Communications Equipment. We need to assure the Communication Systems are secure and that the connections to those systems and software are also secure. To accomplish this, first and foremost, we need a broader strategic plan, and i know that recently our bill that we passed out by our colleague senator cornyn in july was about getting the president to see congress a much needed strategy on 5g, and hopefully well see more details on that soon. But we must also build a forceful Global Coalition of countries to share our values and respect Property Rights and the rule of law, and we need a smart multinational approach to this, and so i hope that mr. Chairman will continue to work with our colleagues on the Intel Committee and on the Foreign Affairs committee to make sure that this is also being accomplished. We must create incentives for other countries to use communication equipment that does not contain a Government Back door access, and the United States should have a great source of allies to work with us on these issues, so again, appreciate this hearing this morning. I think its important to continue to clarify u. S. Leadership on this issue and how we move ahead, and i appreciate the fact that we have so many great witnesses to talk about what these immediate next steps are in the legislation that has gone to the president s desk. Thank you, mr. Chairman. And thank you senator cantwell. We have a vote on the senate floor scheduled for around 10 30, and so well just do the best we can sharing the gavel and getting back and forth, but we are delighted to have the testimony. Your statements will be included in the record in full, and we recognize each of you for around five minutes to summarize your testimony. Mr. Berry. Thank you, mr. Chairman. Every american in Rural America reliable broadband maps. I look forward to your successful completion of the broadband data act and its signed into law, so from everyone from Rural America, a big thank you to this committee. So chairman wicker, Ranking Member cantwell and members of the committee, thank you for the opportunity to testify about the security and integrity of the telecommunications supply chain, both for existing wireless net ork networks and for the nations future 5g. Cca is the nations leading association for competitive wireless carriers as well as the vendors and suppliers serving that ecosystem. Cca and its members fully support efforts to protect networks from cyber and National Security threats. I strongly commend this committees strongly commend bipartisan networks to send this to the president. This addresses many key concerns. It provides all carriers with clear direction. It importantly creates a fund to help small carriers replace covered equipment. Since i last appeared at this commity, theres been a lot of talk about what steps small carriers must take to secure the networks. And your actions, as a matter of fact your legislation, will allow these to not just talk the talk but walk the walk. Wireness net woks are providing connectivity from innovation ranging from health, Public Safety, to economic and safety. Theyre all providing security against threats. The transition provides an opportunity for all carriers to build into security as a basic function. The challenge is heightened by carriers that have equipment in their networks from companies deemed by federal agencies to pose a National Security threat. Let me be clear, most cca members do not have covered equipment in their networks. For those to do, often they provide service to their own Rural Communities operating where others dont. On the thinnest of margins to connect their neighbors. These are owned by and ploy americans in the local communities, and i can assure you these patriots want to take whatever steps necessary to ensure our National Security. Through your actions, these carriers will have a program to support replacing covered Network Elements. Chairman whicker, i completely agree with your remarks where you said some things are paying for and protecting america is worth paying for. The undertaking to replace equipment is unprecedented, never been done. Networks in operation today were built over years, actually decades, and such a significant undertaking will be allen compassing. This will keep Rural Americans connected. For all the talk about rip and replace, carriers must create and execute individual plans that replace and then rip, they must maintain service before decommissioning. Anything less threatens the loss of connecttivity in Rural America including access to 911 and Public Safety services. These carriers are attempting to rebuild the airplane in mid flight. The challenge of securing networks does not end here. As we enter into the 5 g era there are new opportunities to build security from the ground up. There are three main factors for industry and policymakers going forward. Number one, all carriers must have clear guidance and information from the federal Government Regarding security. You did this. Your legislation fa silltates information specifically for small providers. Number two, equipment must be available for all carriers. The act suggests replacements that would allow carriers with and without equipment to confidently make the decisions that they will need. Flexibility will be the secret sauce to this success. Number three, new technologies hold the promise to enhance security, spur innovation, and save costs. We should explore virtual technologies. However policymakers should not mandate that. If they deliver on their promise, they will compete successfully in the marketplace. In closing, thank you again for the Exceptional Leadership in passing the secure and trusted Network Communications act. Cca is committed to working with the shareholders, stockholders, and stakeholders, to accomplish the facts of securing our networks while maintaining services for millions of the committee. Thank you for inviting me to speak about 5g. [muted] intel corporation. My responsibilities include our participation in industry standards and forums including 3 g and driving the benefits of 5 g to various other industries to fuel innovation. Intel is a u. S. Semiconductor manufacturer that ploys more than 100, 000 people globally with more than half in the United States. Intel is the Largest Global Semiconductor Supplier with the vast majority for advance the manufacturing and r d conducted in the United States. It used to not intel inside only in computers. But now we are inside the network as well. 5g runs on intel. We are a leader in 5g and one of our rules is to supply high volume to Telecom Equipment manufacturers including noekia and ericson. We are expected to become the Worlds Largest chip makers. Intel takes a leading role in 5g standards and Industry Groups including 3 g and itu. I also represent intel at cti, and were a member of the oran alliance and the new improved supply Chain Security and some policy recommendations. 5g marks the convergence of communications and compute capabilities which will change our world. The u. S. Was the first nation with widespread 4g wonch which led to the american economy. 5g will enable benefits to secsores such as industrial, transportation, al culture and health care. Virtualization is critical to enabling the transition. As a part of this evolution, some of the Network Functions are being virtualized rather than being solved by a turnkey solution, creating what we call a virtual radio network. Intels product lines support 5g network approaches ranging from the traditional like ericson and nokia, so they can continue to deliver services, to also new entrants such as mav knew. We recognize the security challenges exist. Intel will continue our pro active efforts to build a more trusted foundation for all computing systems. Intels unique position in the Technology Supply chain has allowed us to take a leading role when it comes to transparency and security and partnership with our suppliers and customers. We have already developed a set of policies and procedures at our own factories to validate where and when intelbuilt components were manufactured. In todays supply chain technology, intel is working with manufacturers across the supply chain to help them offer customers better transparency and visibility into manufacturing, support, and requirement of computing devices. Intel calls this effort, compute life cyc