FCC to Consider Requiring Periodic National Security Reviews of International Telecommunications Service Authorizations Under Section 214

FCC Chairwoman Jessica Rosenworcel proposed new rules under which the Commission would periodically reassess and consider renewing existing authorizations for foreign-owned companies to provide telecommunications services in the United States.  These reviews will ensure that changing national security considerations are reflected in existing authorizations under Section 214 of the Communications Act.  To stay ahead of evolving security threats, the new rules, if adopted by a vote of the full Commission at its next monthly meeting, would require foreign-owned license holders to undergo a periodic review and renewal process, which would involve close consultation with our national security colleagues in the Executive Branch.

“Across the board, the FCC is taking clear and decisive action to address national security risks in our communications networks,” said Chairwoman Rosenworcel.  “That is why it is so  important to have the agency regularly review foreign companies’ authorizations to provide telecommunications services in the United States. If a provider poses a threat that cannot be mitigated, we will take the steps necessary to remove their access to our networks.”

In the last few years, the FCC has revoked the Section 214 operating authorities of four Chinese state-owned carriers based on recommendations from national security agencies.  By doing this, the FCC established a clear process for taking away a foreign carrier’s right to operate in the United States when there are national security concerns that cannot be mitigated.  In addition, the agency announced a first-of-its kind settlement against a company that was required to divest unvetted Russian ownership, pay a civil penalty, and put in place new security procedures to review any new ownership through the Office of Foreign Asset Control at the Treasury Department.

• The FCC took still further national security actions under the Chairwoman’s deter, defend, and develop strategy:
• Updated the “Covered List” prohibiting communications equipment deemed to pose an unacceptable risk to national security from being authorized for importation or sale in the United States;
• Prohibited the use of public funds to purchase covered equipment or services;
• Launched the Secure and Trusted Communications Networks Reimbursement Program to remove insecure equipment that has already been installed in U.S. networks;
• Updated the process for approving submarine cable licenses to better address national security concerns; and,
• Initiated inquiries on IoT security and internet outing security, among other actions.

 Source: FCC media announcement