telecommunications infrastructure; equipment requirements

SB 1046, the "Secure Telecommunications Act of 2026," prohibits Arizona telecommunications providers from using equipment manufactured by China or entities tied to China in critical broadband infrastructure. This affects all telecom companies operating in Arizona that manage networks meeting the bill's definition of "critical telecommunications infrastructure" (broadband systems enabling user communication with microchips). The law requires providers to remove and replace prohibited equipment by 2026, certify compliance annually to the Corporation Commission, and face daily civil penalties up to $100,000 or loss of state/federal funding for noncompliance. The bill aims to secure Arizona's telecom grid by eliminating hardware and software from designated foreign adversaries.