Page:2020-06-09 PSI Staff Report - Threats to U.S. Communications Networks.pdf/40

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has a ten percent or greater foreign owner,[1] the FCC refers the application to the Executive Branch agencies via an "Executive Branch letter."[2] The letter explains that the FCC received an application from a carrier with foreign ownership interest and briefly describes the applicant and its proposed services.[3] The FCC requests that the agencies opine on whether the application raises national security, law enforcement, foreign policy, or trade policy concerns.[4] If the Executive Branch agencies do not raise national security, law enforcement, foreign policy, or trade policy concerns, the FCC conducts no further review of the issues.[5] In fact, in its Executive Branch letter, the FCC typically requests that agencies provide comments by a certain date, because the FCC is otherwise "prepared to take action on [the] application[]."[6] The FCC "streamlines" the application and deems it approved 14 days after the FCC issues a public notice of the application.[7] Thereafter, the carrier is allowed to begin providing the authorized services.

3. The FCC Does Not Periodically Review Section 214 Authorizations Once Granted

Once the FCC authorizes a carrier to provide services, nothing in the FCC's regulations require it to periodically renew that authorization or to reevaluate whether the carrier's services continue to serve the public interest.[8] As long as the authorized carrier pays annual regulatory fees, files regular reports, and otherwise complies with the FCC's rules, the authorization to operate and provide services


    Public Notice—International Applications Accepted for Filing, Rep. No. TEL-00575S (Sept. 13, 2002); Fed. Commc'ns Comm'n, Public Notice—International Applications Accepted for Filing, Rep. No. TEL-00417S (July 6, 2001); Fed. Commc'ns Comm'n, Public Notice—International Applications Accepted for Filing, Rep. No. TEL-00144S (Oct. 13, 1999).

  1. Notice of Proposed Rulemaking: Process Reform for Exec. Branch Review of Certain FCC Applications & Petitions Involving Foreign Ownership, 31 FCC Red 7456, 7458 ¶6 (2016) [hereinafter FCC Proposed Executive Branch Review Reform]. See also Executive Branch Recommendation re China Mobile USA, supra note 56, at 2; Kathleen Collins, Assistant Bureau Chief, International Bureau, Fed. Commc'ns Comm'n, Remarks for Panel Discussion at the 2d National Forum on CFIUS (July 21, 2015).
  2. See Briefing with the Dep't of Justice (Aug. 1, 2019). See, e.g., FCC-PSI-000227-28; FCC-PSI-000478-79.
  3. See Briefing with the Dep't of Justice (Aug. 1, 2019). See, e.g., FCC-PSI-000227-28; FCC-PSI-000478-79.
  4. See, e.g., FCC-PSI-000227-28; FCC-PSI-000478-79.
  5. See Email from the Fed. Commc'ns Comm'n to the Subcommittee (June 2, 2020) (on file with the Subcommittee).
  6. See, e.g., FCC-PSI-000227-28; FCC-PSI-000478-79.
  7. See 47 C.F.R. § 63.12(a)-(b). In addition to requests by Team Telecom and other Executive Branch agencies, the FCC can remove an application from streamlining if certain specified regulatory requirements are met. See id.
  8. See generally 47 U.S.C. § 214(a). The FCC told the Subcommittee, however, that if at any time it finds an international Section 214 holder is not compliant with FCC rules, the FCC can and has referred the authorization holder to the FCC's Enforcement Bureau. Email from the Fed. Commc'ns Comm'n to the Subcommittee (June 2, 2020) (on file with the Subcommittee).

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