The telecommunications industry in the United States has long resisted federal oversight, relying heavily on lobbying efforts to thwart regulatory measures. For the past three decades, telecom giants—and the entities financially backed by them—have continuously opposed various forms of regulation, from modest privacy protections to essential pricing transparency measures. The prevailing argument leaned on the notion that deregulation would ultimately yield positive results through market forces.
However, this deregulation has contributed to the current state of U.S. broadband, characterized by competitive deficits, high costs, inferior service quality, and substantial security vulnerabilities. Most glaringly, the lax oversight has played a significant role in enabling what is regarded as the worst hacking attack in U.S. history, linked to Chinese intruders known as the “Salt Typhoon.” These actors successfully infiltrated nine major U.S. Internet Service Providers, targeting sensitive information and creating an ongoing cybersecurity crisis. Officials are grappling with the ramifications and remain uncertain about the presence of these intruders within critical networks.
U.S. media coverage of this event has been notably muted, especially when compared with the attention granted to other tech-related controversies, such as the TikTok moral panic. Additionally, there is a notable hesitancy among media outlets to link this major cybersecurity breach to years of lobbying-driven deregulation, despite clear statements from U.S. officials. White House Cybersecurity Chief Anne Neuberger has pointed out that the lack of regulation meant the intrusions were not only deeper but also went undetected for longer than they might have under more stringent oversight, as evidenced by the responses of U.K. colleagues who suggested that their regulatory framework would have mitigated the impact.
The Federal Communications Commission (FCC) is scheduled to convene meetings soon to reassess cybersecurity oversight in the telecom sector. However, leadership under Brendan Carr, a figure with a history of aligning with major telecommunications firms, poses uncertainties for regulatory change. The looming erosion of net neutrality, bolstered by Trump-era judicial appointments, further complicates the FCC’s ability to enact robust cybersecurity measures. This broader context of governmental inertia is highlighted by the ongoing absence of significant telecom reform, underscored by a Congress perceived as too compromised to intervene effectively.
The Salt Typhoon incident underscores the security implications of longstanding deregulation, countering years of focus on foreign products like Chinese-made Huawei telecom hardware. The hacking crisis points instead to domestic challenges: a combination of insufficient oversight, deregulation, and vulnerabilities embedded in the current telecommunications infrastructure.
For more insights on the consequences of deregulating U.S. telecom, read the full article on Techdirt.