The FCC Rolls Back National Cybersecurity Requirements... What It Means for Telecom Providers and MSPs in 2026.

In early December, the Federal Communications Commission (FCC) quietly revised its stance on cybersecurity requirements for telecommunications companies. While the Commission still encourages strong cyber practices, it has stepped back from enforcing a standardized national minimum cybersecurity baseline across the telecom sector.

This shift lands at a time when the industry faces escalating threats, from AI-driven phishing campaigns to infrastructure-level attacks on routing, identity systems, and service-provider APIs. For an industry already recognized as part of national critical infrastructure, regulatory rollback raises questions about resilience, consistency, and the role service providers must now play in setting their own cybersecurity direction.

Yet with change also comes opportunity... for telecoms and MSPs to define stronger standards internally, demonstrate differentiation in the market, and proactively protect customer ecosystems.

Let’s break down what this means...

So, What Changed, and Why It Matters...

Historically, telecom providers were bound by a patchwork of federal and state rules governing data protection, incident reporting, and operational safeguards. The FCC's move away from a unified national minimum standard effectively shifts responsibility to individual providers to determine, and enforce, their own cybersecurity posture.

Why this matters...

• No minimum standard means greater variability. Customers may not know what level of security their provider actually maintains.

• Increased reliance on provider transparency. Providers must now articulate and demonstrate their security posture more proactively.

• More pressure on internal governance. CISOs, SOC leaders, and compliance teams must justify their frameworks without a regulatory baseline to point to.

• MSPs and Telecoms become more accountable for self-governance. The absence of regulation does not reduce risk, if anything, threats are increasing.

For telecoms and MSPs alike, this is a defining moment. The security bar is no longer set by Washington, it is set by YOU!

The Risk Landscape in a Post-Baseline World...

The rollback doesn’t occur in a vacuum. It comes amid one of the most active threat periods the telecom industry has ever experienced.

1. AI-Driven Threats Are Expanding

Attackers leverage AI to-->

• Automate reconnaissance

• Mimic telecom support emails

• Create near-perfect domain impersonations

• Bypass MFA through AiTM kits

• Generate spear-phishing lures tailored to service providers

Telecom infrastructure becomes a high-leverage target for everything from DDoS amplification to identity compromise.

2. Supply Chain & API Vulnerabilities Are Increasing

Telco and MSP environments rely on-->

• Interconnected monitoring platforms

• Provisioning APIs

• Cloud-hosted orchestration tools

• Multi-vendor support systems

A compromise in one link can cascade quickly.

3. Customers Expect Stronger Controls... Not Weaker Ones

Even without federal minimums-->

• Enterprise customers still demand compliance

• Insurance providers require evidence of cybersecurity maturity

• RFPs increasingly ask for detailed governance and SOC capabilities

Standards may not be federally mandated, but market pressure is stronger than ever.

Opportunities for Telecom and MSP Providers

While regulatory withdrawal may sound negative, there are meaningful advantages for providers who move decisively.

1. Setting Your Own Standard Becomes a Differentiator

Providers, including organizations like Spectrotel, that proactively implement Zero Trust principles, strengthen identity governance, maintain continuous monitoring, refine incident readiness, and engage in regular third-party audits will stand out in RFP processes, customer evaluations, and industry assessments.

2. Greater Flexibility in Implementation

Without a prescriptive federal standard, telecom and MSPs can...

• Tailor controls based on real-world risk

• Adopt emerging frameworks more quickly

• Integrate security into operations without bureaucratic lag

• Innovate in ways regulations often limit

Leadership teams can act based on threat intelligence, not politics.

3. Strengthening Customer Trust

Transparent cybersecurity posture reporting, voluntary, builds stronger, stickier customer relationships.

If there’s one constant in telecom and managed services, it’s this:

Customers stay where they feel safe!

What I Believe Telecom Providers and MSPs Should Do Now...

To stay ahead of threats, and ahead of the market, organizations should consider the following actions-->

1. Establish a Unified, Internal Cybersecurity Baseline

Even without regulation, a minimum standard is essential. Map to...

• NIST CSF

• CIS Controls v8

• ISO 27001

• SOC 2 Trust Principles

• CISA’s Secure-by-Design guidelines

Aligning to recognized frameworks demonstrates maturity and accountability.

2. Strengthen Identity and Access Governance Across Platforms

Including...

• Network provisioning systems

• Customer management portals

• Cloud management consoles

• Monitoring and observability platforms

Identity security is fast becoming the #1 attack vector in telecom & MSP spaces.

3. Conduct Regular Third-Party Security Assessments

These are now more important than ever, not to meet a regulatory requirement, but to validate...

• Architecture

• Vulnerability posture

• SOC readiness

• Incident response capabilities

Third-party reports also build customer confidence.

4. Increase Transparency With Customers

Publish...

• Security commitments

• Incident response standards

• Uptime SLAs

• Data governance practices

Transparency is now a competitive advantage.

5. Build a Continuous Improvement Cycle

Security is not a project; it is a program. Providers should adopt regular...

• Threat modeling

• Purple-team exercises

• SOC/NOC cross-collaboration

• Post-incident reviews

• Architectural hardening cycles

This level of maturity is what customers quietly look for, even when they don’t ask.

Telecommunications and managed service providers sit at the center of connectivity, data flow, identity, and critical infrastructure. As threats continue to escalate, the removal of a federal minimum cybersecurity standard does not diminish the responsibility we carry, it amplifies it.

This moment is an opportunity for providers to define excellence on their own terms. Those who build strong cybersecurity governance frameworks today will not only protect their networks and customers, but will shape the next era of trust in telecommunications.

Regulation or not, the industry standard is what we make it.