FCC Commissioners voted unanimously Wednesday to revoke permission for Chinese-owned Pacific Networks Corp. and its wholly-owned subsidiary, ComNet (USA) to provide domestic interstate and international telecommunications services within the United States. The Order on Revocation and Termination directs the companies to discontinue any domestic or international services within 60 days.
The Order finds that because the telecoms are U.S. subsidiaries of a Chinese parent, they’re subject to exploitation, influence and control by that government, and are highly likely to be forced to comply with Chinese government requests. The agency notes the national security environment with respect to China has changed since the Commission authorized the companies to provide telecommunication services in the U.S. “A significant national security and law enforcement risk provides opportunities for the telecoms and their parent companies to access, monitor, store, and in some cases, interrupt and disrupt U.S. communication that could lead to espionage and other harmful activities against the United States,” states the Commission in the document.
During yesterday’s monthly meeting, the Commissioners said they took the action based on input from Executive Branch agencies, a review of the companies’ responses in this proceeding, the public record, and the FCC’s public interest analysis. The Commissioners said the action safeguards the nation’s telecommunications infrastructure from potential security threats.
In March 2021, the FCC found that Pacific Networks and ComNet failed to dispel serious concerns regarding keeping their authority to provide telecom services in the United States. The Commission gave the companies a chance to present any remaining arguments or evidence. Wednesday the agency decided that the present and future public interest, convenience, and necessity is no longer served by the companies’ retention of their section 214 authority.
The FCC took similar action against China Telecom and China Unicom last year, Inside Towers reported. FCC Commissioner Geoffrey Starks said the action revokes the Section 214 authority for the last of the Chinese carriers identified by the U.S. to be national security risks
By Leslie Stimson, Inside Towers Washington Bureau Chief
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