statutory authority, Team Telecom had no formal, written processes for reviewing applications or monitoring compliance with security agreements. The informality also resulted in protracted review periods and a process FCC commissioners described as "broken" and an "inextricable black hole" that provided "no clarity for [the] future." For example, Team Telecom's review of China Mobile USA's application lasted seven years. Further, the agencies did not dedicate sufficient. resources to ensure Team Telecom conducted oversight in an efficient and effective manner. The components of DHS and DOJ responsible for Team Telecom together historically tasked three employees with reviewing applications and monitoring compliance with security agreements.
In April 2020, as the Subcommittee was nearing the end of its investigation, the President issued Executive Order 13913, replacing the informal Team Telecom with the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services ("EO Telecom Committee"). The Executive Order seeks to address many of the shortcomings identified by the Subcommittee's investigation. The Executive Order requires members of the EO Telecom Committee to enter into a memorandum of understanding by July 3, 2020. Therefore, this report continues to refer to Team Telecom, even in relation to actions taken after April 4, 2020.
Beginning in 2018, Team Telecom and the FCC publicly highlighted the national security concerns associated with Chinese state-owned carriers operating in the United States. China Mobile USA's application marked the first instance in which Team Telecom recommended that the FCC deny a foreign carrier authorization to provide international telecommunications services on national security grounds. In its denial, the FCC relied on Team Telecom's conclusion that China Mobile USA is "subject to exploitation, influence, and control by the Chinese government." Such government control, Team Telecom warned, could advance the Chinese government's cyber and economic espionage activities targeted at the United States. Team Telecom specifically cautioned that China Mobile USA would build relationships with major U.S. carriers, through which it could gain access to U.S. networks and the sensitive public and private data transferred across those networks.
At least three other Chinese state-owned carriers have been operating in the United States for decades. The U.S. subsidiaries of the two other Big Three carriers—China Telecom and China Unicom—along with a smaller state-affiliated provider ComNet (USA) LLC ("ComNet") each received authorization to provide international telecommunications services in or prior to 2002 and have been operating ever since. During this time, these Chinese carriers have built relationships with major U.S. carriers and established points of presence across the United States. Further, China Telecom's U.S. subsidiary, China Telecom Americas, provides services to Chinese government facilities in the United States.
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