FCC Scrutinizes Four Chinese Government-Controlled Telecom Entities

The Federal Communications Commission issued Orders to Show Cause against four companies that are ultimately subject to the ownership and control of the Chinese government: China Telecom Americas, China Unicom Americas, Pacific Networks, and ComNet. The Orders direct the companies to explain why the FCC should not start the process of revoking their domestic and international section authorizations enabling them to operate in the US. April 24’s action builds on the FCC’s 2019 rejection on national security and law enforcement grounds of China Mobile USA’s application to provide international telecommunications services between the United States and foreign destinations.

The Orders to Show Cause give the companies the opportunity to demonstrate that they are not subject to the influence and control of the Chinese government, that they continue to be qualified to hold domestic and international section 214 authorizations and International Signaling Point Codes, and that public convenience and necessity is served by their retention of the authorizations and assignments. Moreover, the Order to Show Cause for China Telecom Americas directs that company to provide a detailed response to allegations raised in the Executive Branch Recommendation to Revoke their international section 214 authorization. The entities have 30 days to respond.