The United States revoked the authorization of a Chinese telecommunications company due to national security concerns

The authorization of the Chinese company Pacific Networks Corp. and its wholly-owned subsidiary, ComNet (USA) LLC, to provide domestic interstate and international telecommunications services in the United States has been revoked by a U.S. communications regulator. The U.S. Federal Communications Commission (FCC) announced in a press release that the revocation and termination order requires companies to cease providing domestic or international services pursuant to their Section 214 authorization. within 60 days of the issuance of the order. “The Commission finds that today’s action protects the country’s telecommunications infrastructure from potential security threats based on inputs from executive branch agencies, a thorough review of the companies’ responses in this proceeding , the public record and the FCC’s public interest analysis under the law,” the FCC said.

In March 2021, the Commission found that Pacific Networks and ComNethad failed to address serious concerns about their continued authority to provide telecommunications services in the United States. The Commission therefore adopted procedures that allowed Pacific Networks and ComNet, executive branch agencies and the public to present any remaining arguments or evidence on the matter. According to the statement, based on the FCC’s public interest analysis, the Commission concludes that the current and future public interest, convenience and necessity are no longer served by the companies’ continued power. under section 214.

The order concludes that the companies are U.S. subsidiaries of a Chinese state entity and are therefore subject to the operation, influence and control of the Chinese government and are very likely to be forced to comply with Chinese government requests without sufficient legal procedures. subject to independent judicial review. The order also finds that Chinese government ownership and control of companies raises significant national security and law enforcement risks by providing Chinese companies and government with the ability to access, monitor, store and, in some cases, disrupt and/or hijack communications. “Third, regardless of these concerns, the companies’ conduct and representations to the Commission and Congress demonstrate an unreliability and untrustworthiness that erodes the baseline level of trust that the Commission and other U.S. government agencies require from telecommunications operators given the critical nature of providing telecommunications services in the United States,” the FCC statement added.

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  • The United States revoked the authorization of a Chinese telecommunications company due to national security concerns
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Sean B. Jackson