The FCC Is Coming for Offshore Call Centers. Here's Everything You Need to Know.
On March 26, 2026, the FCC votes on the most significant call center regulation in decades. Offshore caps. English proficiency mandates. Sensitive data bans. Consumer transfer rights. This is not a drill.
Key Facts at a Glance
In This Article
What Happened and Why It Matters The 6 Major Proposals in the FCC Ruling Who Does This Affect? Congress Is Moving Too Timeline: What Happens Next What You Should Do Right Now FAQWhat Happened and Why It Matters
Tomorrow, March 26, the FCC holds its open commission meeting. On the agenda is a vote on a Notice of Proposed Rulemaking that could reshape how every major telecom company in the country handles customer service.
FCC Chairman Brendan Carr announced the proposal on March 4, 2026. He framed it as a consumer protection issue. His argument is simple. Americans are frustrated with offshore customer service. Language barriers create friction. Data security is at risk. And foreign call centers have become a breeding ground for illegal robocall scams targeting U.S. consumers.
He's not wrong.
Nearly 70% of U.S. businesses have outsourced at least one department overseas, according to the FCC. That number is even higher in the telecom and communications industry. The result has been a slow erosion of customer service quality that anyone who has ever called their cable company already knows about.
This NPRM is the FCC's answer. And it is aggressive.
This is not a final rule. It is a Notice of Proposed Rulemaking. That means the FCC is voting to START the formal regulatory process. Public comment periods follow. But the direction is clear, and the momentum is real.
The 6 Major Proposals in the FCC Ruling
The draft NPRM contains over 200 questions. But the core proposals break down into six categories that matter.
The FCC is proposing to limit the percentage of customer service calls that covered providers can handle at offshore call centers. The suggested starting point is 30%. That means 70% or more of your customer interactions would need to be handled domestically. The FCC is asking whether this cap should apply separately to inbound and outbound calls, and whether certain call types should be exempt.
Every agent working in an offshore call center serving U.S. customers would need to demonstrate proficiency in "American Standard English." That means vocabulary, idioms, tone, and cultural understanding. Not just basic English. The FCC cites testing frameworks like the Occupational English Test and TOEFL as potential standards.
Providers would be required to tell consumers at the beginning of every interaction that their call is being handled outside the United States. The FCC is considering whether this disclosure should include the specific country.
If a consumer asks to speak with someone in the United States, the provider must transfer that call. No runaround. No extra wait time. The FCC is proposing that wait times for these transfers cannot exceed the wait times for calls originally routed to U.S. agents.
This is the big one. The FCC is proposing that any consumer transaction involving sensitive information must be handled at a U.S. based call center. Period. "Sensitive information" includes passwords, password reset credentials, multi-factor authentication codes, Social Security numbers, bank account numbers, and credit card numbers. This restriction would apply across all channels. Phone, email, chat, text.
The FCC is asking whether call centers in "foreign adversary" nations like China should be banned entirely. They are also proposing mandatory compliance reporting, with providers required to track and report their adherence to these rules.
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Get a Free QuoteWho Does This Affect?
The FCC's jurisdiction is specific. The proposed rules would directly apply to telecommunications carriers, VoIP providers, cable operators, satellite broadcasters, and their affiliates. If your company provides wireless service, cable TV, internet access, or VoIP, you are in the crosshairs.
But the reach could go further. The FCC is specifically asking whether these rules should also apply to internet only providers, even those with no affiliation to a traditional telecom company. They are also asking whether the rules should cover all non-voice channels like email, chat, and text messaging handled by offshore operations.
Even if you are not directly regulated by the FCC, pay attention. This ruling is setting the standard. And Congress is working on legislation that would apply these same principles to every business in America.
Congress Is Moving Too: The Keep Call Centers in America Act
The FCC ruling is not happening in a vacuum. There are two bipartisan bills in Congress right now that would take these concepts and apply them to the entire economy.
The Keep Call Centers in America Act of 2025 (S. 2495) was introduced by Senators Ruben Gallego (D-AZ) and Jim Justice (R-WV) in July 2025. The bill would require businesses to notify the Department of Labor before relocating call center operations overseas. The DOL would maintain a public list of companies that have offshored call center work. Companies on that list would lose eligibility for federal grants and guaranteed loans.
The bill also requires location disclosure and gives consumers the right to request a U.S. based human agent. And here is the part that gets less attention: it requires disclosure when AI is being used in customer service interactions too.
The message from both the FCC and Congress is the same. The era of quietly offshoring customer service without accountability is ending.
Timeline: What Happens Next
Let me be straight with you. Final rules are a long way off. Regulatory proceedings move slowly. The comment period alone will take months, and the final rules will almost certainly look different from this draft.
But waiting is a mistake. The direction of travel is clear. Companies that start preparing now will be ahead of the curve. Companies that wait will be scrambling.
What You Should Do Right Now
Whether you are a telecom provider directly covered by this ruling or a business in any industry that relies on offshore customer service, here is the honest assessment of what you should be doing today.
Audit your call center operations. Know exactly what percentage of your customer interactions are handled offshore. Know what types of data your offshore agents are accessing. If you cannot answer those questions today, you are already behind.
Assess your sensitive data exposure. The proposed ban on offshore handling of sensitive data is the most impactful part of this ruling. If your offshore agents are touching passwords, account numbers, SSNs, or payment information, start planning your transition now.
Evaluate your domestic capacity. If 70% or more of your customer interactions need to be handled in the U.S., do you have the infrastructure? The seats? The trained agents? If not, it is time to start that conversation with a domestic BPO partner.
Watch the comment period. If this ruling affects your business, file comments. The FCC is asking over 200 questions. They want industry input. This is your chance to shape the final rules.
Do not panic. Do prepare. This is not law yet. But the writing is on the wall. Bipartisan support in Congress. An aggressive FCC chairman. Consumer frustration at an all time high. The trend is clear.
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Frequently Asked Questions
Is this a final rule?
No. The March 26 vote is on a Notice of Proposed Rulemaking. That starts the formal comment process. Final rules are typically 12 to 18 months away.
Does this apply to my business if I am not a telecom company?
The FCC's authority is limited to communications providers it regulates. However, the Keep Call Centers in America Act pending in Congress would apply similar requirements to all businesses.
What counts as "sensitive data" under the proposed rules?
Passwords, password reset credentials, multi-factor authentication codes, Social Security numbers, bank account numbers, credit card numbers, and similar sensitive consumer information.
Would the rules apply to chat, email, and text, or just phone calls?
The sensitive data restriction would apply across all communication channels. The FCC is also seeking comment on whether the broader rules should extend to non-voice channels.
What is the proposed offshore cap?
The FCC has suggested starting at 30% of customer service interactions. The exact threshold is open for public comment.
What should I do if I currently use offshore call centers?
Start auditing your operations now. Know your offshore volume, what data offshore agents access, and your domestic capacity. Begin evaluating U.S. based BPO partners. And participate in the public comment process.
How can Expivia help?
Expivia is a 100% U.S. based contact center with 600+ seats in Erie, PA. We handle customer service, sales, tech support, and back office operations. All domestic. Our AI powered QA platform OttoQA ensures every interaction meets your quality standards. Contact us today.
Don't wait for the final rule. Start the conversation now.
Contact ExpiviaThis article is for informational purposes only and does not constitute legal advice. Consult qualified legal counsel regarding your specific regulatory obligations. For the full text of the FCC's draft NPRM, visit docs.fcc.gov.