Page:2020-06-09 PSI Staff Report - Threats to U.S. Communications Networks.pdf/36

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IV. EFFORTS TO MITIGATE NATIONAL SECURITY RISKS OF FOREIGN CARRIERS OPERATING IN THE UNITED STATES

This section analyzes the U.S. government's regulation of foreign carriers seeking or authorized to provide international telecommunications services between the United States and foreign destinations.[1] The FCC regulates the U.S. telecommunications market by authorizing foreign and domestic carriers to provide telecommunications services. As part of its analysis of whether to permit international telecommunications services, the FCC must determine that authorizing the carrier serves the public interest. This includes assessing a number of factors, including national security, law enforcement, foreign policy, and trade concerns raised by the proposed services. The FCC, however, does not analyze these factors itself. Instead, until recently, it relied on relevant Executive Branch agencies to provide subject-matter expertise on these topics. Team Telecom—an informal group comprised of DOJ, DHS, and DOD—was charged with assessing national security and law enforcement risks. But Team Telecom's review was historically described as "broken" and a "black hole," due in part to a lack of statutory authority and limited resources. Where Team Telecom did reserve for itself the right to monitor a foreign carrier's operations in the United States, it exercised that authority in an ad hoc manner.

A. The FCC Regulates the Operations of Foreign Telecommunications Carriers in the United States

The FCC is an independent[2] U.S. government agency responsible for regulating "interstate and international communications by radio, television, wire, satellite, and cable in all 50 states, the District of Columbia, and U.S. territories."[3] Congress created the FCC to evaluate and regulate competition within the communications industry and avoid economic waste, by assessing and preventing large monopolies and protecting existing carriers through regulation of market entry.[4] With a focus on ensuring economic opportunities, the FCC seeks to


  1. As described more below, this report focuses on carriers authorized to provide international telecommunications services under Section 214 of the Communications Act of 1934. International Section 214 authorization permits the authorization holder to provide international telecommunications services between the United States and foreign destinations. The FCC separately issues domestic Section 214 authorization for services within the United States. References to Section 214 authorization contained in this report are meant to refer to international Section 214 authorization, unless otherwise noted.
  2. The FCC is "an independent U.S. government agency overseen by Congress." It is "directed by five commissioners who are appointed by the President of the United States and confirmed by the U.S. Senate." See What We Do, Fed. Commc'ns Comm'n, https://www.fcc.gov/about-fcc/what-we-do.
  3. 47 U.S.C. § 151 et seq. (as amended) (2018); Mission, Fed. Commc'ns Comm'n, https://www.fcc.gov/about/overview.
  4. See generally H. Comm. on Interstate & Foreign Commerce, Comms. Act of 1934, Section 214 Legislative Background, H. Doc. No. 44-667, 1–2 (1979) [hereinafter Section 214 Legislative Background].

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