Page:2020-06-09 PSI Staff Report - Threats to U.S. Communications Networks.pdf/15

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  1. Since entering into the agreements more than ten years ago, Team Telecom conducted only two site visits to each company—or four in total. Only one of those visits occurred before 2017.
  2. The FCC and Team Telecom have recognized the national security risks posed by Chinese state-owned carriers operating in the United States. In particular, in connection with China Mobile USA's application, the FCC, Team Telecom, and other Executive Branch agencies cited three areas of concerns: (1) China Mobile USA could be exploited, influenced, and controlled by the Chinese government; (2) China Mobile USA could gain access to U.S. networks through interconnection arrangements with U.S. carriers; and (3) due to its Chinese government control and access to U.S. critical infrastructure, China Mobile USA could help the Chinese government in its cyber and economic espionage or other malicious activities. Team Telecom argued that, if authorized to provide international telecommunication services, China Mobile USA would have been able to monitor, degrade, and disrupt U.S. government communications. And, as a Chinese state-owned company, it must legally comply with requests made by the Chinese government and could not be expected to act against the interests of the Chinese government.
  3. The national security concerns outlined with respect to China Mobile USA apply to the other Chinese state-owned carriers operating within the United States. The carriers are ultimately owned by the Chinese government, and therefore subject to exploitation, influence, and control by the Chinese government. They may be forced to assist in cyber and economic espionage activities targeted at the United States, as they are similarly bound by Chinese national security laws. Further, the carriers have established relationships with major U.S. carriers, including AT&T, Verizon, and CenturyLink—all of which serve government entities, as well as private customers. China Telecom Americas also provides services to Chinese government facilities in the United States.
  4. Since the Subcommittee began its investigation, Team Telecom and the FCC took actions to address national security concerns posed by Chinese state-owned carriers. On April 9, 2020, Team Telecom recommended that the FCC revoke and terminate China Telecom Americas' authorizations. On April 24, 2020, the FCC issued a notice to each of the Chinese state-owned carriers requiring them to demonstrate why their authorizations should not be revoked.

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