Page:2020-06-09 PSI Staff Report - Threats to U.S. Communications Networks.pdf/38

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Section 214 served to codify this consolidation.[1] In presenting the proposed legislation, Representative Sam Rayburn, chairman of the sponsoring committee, summarized the purpose of Section 214 as follows:

Section 214, relating to extensions of lines, is based upon section 1(18) - (22) of the Interstate Commerce Act, which relates only to transportation. It requires a certificate of public convenience and necessity from the Commission for the construction of a new interstate line. The section is designed to prevent useless duplication of facilities, with consequent higher charges upon the users of the service.[2]

Today, Section 214 authorization covers a carrier's provision of "telecommunications services," defined as the "offering of telecommunications for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used."[3] The FCC's rules divide telecommunications services into (1) facilities-based services—where a carrier provides services across its own infrastructure and facilities,[4] and (2) resale services where a carrier sells services provided through another carrier's network.[5]

2. The FCC Must Determine that International Section 214 Authorization Serves the Public Interest, but It Relies on the Executive Branch to Evaluate National Security, Law Enforcement, Foreign Policy, and Trade Concerns

The FCC's assessment of international Section 214 applications includes consideration of the applicant's foreign ownership, given that the FCC seeks to balance its desire for an open market against potential discrimination by foreign carriers against domestic carriers.[6] Prior to the mid-1990s, however, the FCC


    carriers are separately defined as "any provider of telecommunications," with the exception of aggregators of telecommunications services, and are deemed to be common carriers to the extent that the carriers are providing telecommunications services. See 47 U.S.C. § 153(51).

  1. See generally Section 214 Legislative Background, supra note 128.
  2. Section 214 Legislative Background, supra note 128, at 26 (quoting 78 Cong. Rec. 10814 (1934)).
  3. See 47 U.S.C. § 153(53).
  4. See 47 C.F.R. § 63.22; Briefing with the Dep't of Justice (Apr. 3, 2020). Specifically, "facilities-based carrier" is defined as "a carrier that holds an ownership, indefeasible-right-of-user, or leasehold interest in bare capacity in the U.S. end of an international facility, regardless of whether the underlying facility is a common carrier or non-common carrier submarine cable or a satellite system." See 47 C.F.R. § 63.09(a).
  5. See 47 C.F.R. § 63.23; Briefing with the Dep't of Justice (Apr. 3, 2020).
  6. Paul W. Kenefick, A Step in the Right Direction: The FCC Provides Regulatory Relief in International Settlements and International Services Licensing, 8 Comm. Law Conspectus 45 (2000).

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