US revokes authorization of Chinese telecom firm over national security concern

A US communication regulator has voted to revoke the authorization of Chinese firm Pacific Networks Corp. and its wholly-owned subsidiary, ComNet (USA) LLC, to provide domestic interstate and international telecommunications services within the United States.

A US communication regulator has voted to revoke the authorization of Chinese firm Pacific Networks Corp. and its wholly-owned subsidiary, ComNet (USA) LLC, to provide domestic interstate and international telecommunications services within the United States. In a press release, U.S. Federal Communications Commission (FCC) said the Order on Revocation and Termination directed the companies to discontinue any domestic or international services that they provide pursuant to their section 214 authority within 60 days following the release of the Order.

"Based on input 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 Commission finds that today's action safeguards the nation's telecommunications infrastructure from potential security threats," the FCC release said. In March 2021, the Commission found that Pacific Networks and ComNethad failed to dispel serious concerns regarding the retention of their authority to provide telecommunications services in the United States.

The Commission thus adopted procedures that allowed for Pacific Networks and ComNet, the Executive Branch agencies, and the public to present any remaining arguments or evidence in the matter. According to the release, based on the FCC's public interest analysis, the Commission finds that the present and future public interest, convenience, and necessity is no longer served by the companies' retention of their section 214 authority.

The order finds that the companies are US subsidiaries of a Chinese state-owned entity, and therefore they are subject to exploitation, influence, and control by the Chinese government and are highly likely to be forced to comply with Chinese government requests without sufficient legal procedures subject to independent judicial oversight. The order also finds that the companies' ownership and control by the Chinese government raise significant national security and law enforcement risks by providing opportunities for the companies and the Chinese government to access, monitor, store, and in some cases disrupt and/or misroute U.S. communications.

"Third, independent of these concerns, the companies' conduct and representations to the Commission and Congress demonstrate a lack of trustworthiness and reliability that erodes the baseline level of trust that the Commission and other U.S. government agencies require of telecommunications carriers given the critical nature of the provision of telecommunications service in the United States," the FCC release added. (ANI)

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