[Senate Report 119-66]
[From the U.S. Government Publishing Office]
Calendar No. 171
119th Congress } { Report
SENATE
1st Session } { 119-66
_______________________________________________________________________
NETWORK EQUIPMENT TRANSPARENCY ACT
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND
TRANSPORTATION
on
S. 503
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
September 29, 2025.--Ordered to be printed
------
U.S. GOVERNMENT PUBLISHING OFFICE
59-010 WASHINGTON : 2025
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred nineteenth congress
first session
TED CRUZ, Texas, Chairman
JOHN THUNE, South Dakota MARIA CANTWELL, Washington
ROGER F. WICKER, Mississippi AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee TAMMY BALDWIN, Wisconsin
TODD YOUNG, Indiana TAMMY DUCKWORTH, Illinois
TED BUDD, North Carolina JACKY ROSEN, Nevada
ERIC SCHMITT, Missouri BEN RAY LUJAN, New Mexico
JOHN CURTIS, Utah JOHN W. HICKENLOOPER, Colorado
BERNIE MORENO, Ohio JOHN FETTERMAN, Pennsylvania
TIM SHEEHY, Montana ANDY KIM, New Jersey
SHELLEY MOORE CAPITO, West Virginia LISA BLUNT ROCHESTER, Delaware
CYNTHIA M. LUMMIS, Wyoming
Brad Grantz, Majority Staff Director
Lila Harper Helms, Democratic Staff Director
Calendar No. 171
119th Congress } { Report
SENATE
1st Session } { 119-66
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NETWORK EQUIPMENT TRANSPARENCY ACT
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September 29, 2025.--Ordered to be printed
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Mr. Cruz, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 503]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 503) to direct the Federal
Communications Commission to evaluate and consider the impact
of the telecommunications network equipment supply chain on the
deployment of universal service, and for other purposes, having
considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
Purpose of the Bill
The purpose of S. 503, the Network Equipment Transparency
Act, is to require the Federal Communications Commission (FCC
or Commission) to report in its biennial communications
marketplace report on the impact of network equipment
availability on the deployment of universal broadband service.
Background and Needs
The COVID-19 pandemic caused major delays and disruptions
in U.S. supply chains, including for raw materials,
electronics, fiber optic cables, and other components necessary
for building broad-band networks.\1\ At a time when broadband
connectivity was essential, disruptions to the supply chains
enabling that connectivity were extremely concerning. Future
supply chain disruption could again reduce the availability of
necessary equipment and materials, which could impact
investments in broadband infrastructure.
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\1\Fiber Broadband Association, Strategies to Mitigate Bottlenecks
in the Current Fiber Broadband Supply Chain, pp. 2-3, March 2023,
https://fiberbroadband.org/wp-content/uploads/2023/03/FBA_Supply-Chain-
White-Paper_March-2023-Update_Final.pdf.
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The Network Equipment Transparency (NET) Act would seek to
ensure that broadband projects remain on track by identifying
supply chain gaps early. The bill would require the FCC to
determine and report--based on available data--whether supply
chain issues impacted the deployment of broadband and other
advanced telecommunications capabilities over the past 2 years.
The bill would require the FCC to include this determination in
its biennial report on the state of the communications
marketplace.
Pursuant to statute, in the last quarter of every even-
numbered year, the FCC produces ``a report on the state of the
communications marketplace.''\2\ This biennial report assesses
the state of competition; the state of deployment of
capabilities; and barriers to competitive entry, including
market entry barriers for entrepreneurs and other small
businesses.\3\ In the report, the FCC must describe the actions
it has taken in the previous 2 years to address challenges and
opportunities and its agenda for continuing to address those
challenges and opportunities over the coming 2 years.\4\
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\2\47 U.S.C. 163(a).
\3\``Communications Marketplace Report,'' Federal Communications
Commission, July 11, 2022, https://www.fcc.gov/communications-
marketplace-report.
\4\Ibid.
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The NET Act would require the FCC to include a
determination on whether a lack of network equipment
significantly impacted the broadband supply chain and broadband
deployment during the report's term. The bill would preclude
the FCC from requiring any additional information from
providers in making this assessment.
Summary of Provisions
S. 503 would require the FCC to do the following:
Assess the impact of network equipment availability
on the deployment of advanced telecommunications
capabilities (i.e., broadband) to the extent that data
is already available to the FCC.
Include this assessment in the FCC's reports on the
state of the communications marketplace, which are
submitted to Congress and published publicly every
other year.
Legislative History
S. 503 was introduced on February 10, 2025, by Senator
Hick-enlooper (for himself and Senators Moran, Capito, and
Peters) and was referred to the Committee on Commerce, Science,
and Transportation of the Senate. On May 21, 2025, the
Committee met in open Executive Session and, by voice vote,
ordered S. 503 reported favorably without amendment.
118th Congress
S. 690, the NET Act, was introduced on March 7, 2023, by
Senator Hickenlooper (for himself and Senators Moran, Tester,
and Capito) and was referred to the Committee on Commerce,
Science, and Transportation of the Senate. On July 31, 2024,
the Committee met in open Executive Session and, by voice vote,
ordered S. 690 reported favorably with an amendment (in the
nature of a substitute).
117th Congress
S. 3692, the NET Act, was introduced on February 17, 2022,
by Senator Hickenlooper (for himself and Senators Moran,
Tester, and Capito) and was referred to the Committee on
Commerce, Science, and Transportation of the Senate. On May 11,
2022, the Committee met in open Executive Session and, by voice
vote, ordered S. 3692 reported favorably with amendments.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 503 would require the Federal Communications Commission
(FCC) to assess, in its biennial report on the state of the
communications marketplace, how the availability of network
equipment has affected the deployment of advanced
telecommunications capabilities, such as broadband Internet.
Based on the costs of similar activities, CBO estimates
that implementing S. 503 would cost the FCC less than $500,000
over the 2026-2030 period. Because the agency is authorized to
collect fees each year sufficient to offset the appropriated
costs of its regulatory activities, CBO estimates that the net
cost to the FCC would be negligible, assuming appropriation
actions consistent with that authority.
If the FCC increases annual fee collections to offset the
costs of implementing provisions in the bill, S. 503 would
increase the cost of an existing private-sector mandate on
entities required to pay those fees. CBO estimates that the
incremental cost of the mandate would be small and would fall
well below the annual threshold established in the Unfunded
Mandates Reform Act (UMRA) for private-sector mandates ($206
million in 2025, adjusted annually for inflation).
S. 503 contains no intergovernmental mandates as defined in
UMRA.
The CBO staff contacts for this estimate are David Hughes
(for federal costs) and Rachel Austin (for mandates). The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
NUMBER OF PERSONS COVERED
S. 503 would require the FCC to report on the impact of
network equipment availability on broadband deployment in its
biennial communications marketplace report. This assessment
would not allow the collection of additional information and,
therefore, would not impose new reporting requirements on
individuals or businesses.
ECONOMIC IMPACT
S. 503 is not expected to have an adverse impact on the
Nation's economy. This legislation would require an evaluation
of how the network equipment supply chain affects the
deployment of advanced telecommunications capabilities.
PRIVACY
S. 503 would not impact the personal privacy of
individuals.
PAPERWORK
This legislation would not increase paperwork requirements
for private individuals or businesses. The bill would require
the FCC to conduct an assessment of the impact of network
equipment availability on the deployment of advanced
telecommunications capabilities and include this assessment in
the Commission's biennial report on the state of the
communications marketplace. This assessment would be conducted
with data already available to the FCC.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Section 1. Short title.
This section would provide that the bill may be cited as
the ``Network Equipment Transparency Act'' or the ``NET Act''.
Section 2. Telecommunications supply chain consideration.
This section would require the FCC, in its communications
market report, to assess, to the extent it has access to data,
how the availability of network equipment may have impacted the
deployment of broadband capability during the biennial
reporting period. This section would further clarify that the
requirement cannot be construed to require broadband providers
to provide more information to the FCC than is already
required.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
material is printed in italic, existing law in which no change
is proposed is shown in roman):
COMMUNICATIONS ACT OF 1934
* * * * * * *
[47 U.S.C. 163(b)]
TITLE I--GENERAL PROVISIONS
* * * * * * *
SEC. 13. COMMUNICATIONS MARKETPLACE REPORT.
(a) In General.--In the last quarter of every even-numbered
year, the Commission shall publish on its website and submit to
the Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the state of the
communications marketplace.
(b) Contents.--Each report required by subsection (a) shall--
(1) assess the state of competition in the
communications marketplace, including competition to
deliver voice, video, audio, and data services among
providers of telecommunications, providers of
commercial mobile service (as defined in section 332),
multichannel video programming distributors (as defined
in section 602), broadcast stations, providers of
satellite communications, Internet service providers,
and other providers of communications services;
(2) assess the state of deployment of communications
capabilities, including advanced telecommunications
capability (as defined in section 706 of the
Telecommunications Act of 1996 (47 U.S.C. 1302)),
regardless of the technology used for such deployment;
(3) assess, to the extent that data is available to
the Commission, how the availability of network
equipment may have impacted the deployment of advanced
telecommunications capability during the applicable
reporting period;
[(3)] (4) assess whether laws, regulations,
regulatory practices (whether those of the Federal
Government, States, political subdivisions of States,
Indian tribes or tribal organizations (as such terms
are defined in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
5304)), or foreign governments), or demonstrated
marketplace practices pose a barrier to competitive
entry into the communications marketplace or to the
competitive expansion of existing providers of
communications services;
[(4)] (5) describe the agenda of the Commission for
the next 2-year period for addressing the challenges
and opportunities in the communications marketplace
that were identified through the assessments under
paragraphs (1) through [(3)] (4); and
[(5)] (6) describe the actions that the Commission
has taken in pursuit of the agenda described pursuant
to paragraph [(4)] (5) in the previous report submitted
under this section.
(c) Extension.--If the President designates a Commissioner as
Chairman of the Commission during the last quarter of an even-
numbered year, the portion of the report required by subsection
[(b)(4)] (b)(5) may be published on the website of the
Commission and submitted to the Committee on Energy and
Commerce of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate as an
addendum during the first quarter of the following odd-numbered
year.
(d) Special Requirements.--
(1) Assessing competition.--In assessing the state of
competition under subsection (b)(1), the Commission
shall consider all forms of competition, including the
effect of intermodal competition, facilities-based
competition, and competition from new and emergent
communications services, including the provision of
content and communications using the Internet.
(2) Assessing deployment.--In assessing the state of
deployment under subsection (b)(2), the Commission
shall compile a list of geographical areas that are not
served by any provider of advanced telecommunications
capability.
(3) Considering small businesses.--In assessing the
state of competition under subsection (b)(1) and
regulatory barriers under subsection [(b)(3)] (b)(4),
the Commission shall consider market entry barriers for
entrepreneurs and other small businesses in the
communications marketplace in accordance with the
national policy under section 257(b).
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