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Tag: Pacific Networks

  • FCC Bans Pacific Networks And ComNet Over Espionage Concerns

    FCC Bans Pacific Networks And ComNet Over Espionage Concerns

    The Federal Communications Commission (FCC) has banned two more telecom companies from China from operating in the US.

    For the last several years, the US has been cracking down on Chinese firms over espionage concerns. While virtually all companies are required to help Beijing when called on, some are viewed as especially close to the Chinese government, and therefore a greater security risk.

    Pacific Networks and ComNet are the latest to have their authority to operate within the US revoked, essentially banning them.

    “The Federal Communications Commission adopted an Order ending the ability of Pacific Networks Corp. and its wholly-owned subsidiary, ComNet (USA) LLC, to provide domestic interstate and international telecommunications services within the United States,” reads the FCC’s statement. “The Order on Revocation and Termination directs the companies to discontinue any domestic or international services that they provide pursuant to their section 214 authority within sixty days following the release of the Order. Based on input from Executive Branch agencies, 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.”

  • FCC Banning Three Chinese Wireless Carriers

    FCC Banning Three Chinese Wireless Carriers

    The Federal Communications Commission (FCC) is taking action to ban three Chinese wireless carriers: China Unicom, Pacific Networks and ComNet.

    The US has been banning multiple Chinese firms, especially in the telecommunications space. Officials have accused the companies of being a threat to national security and consumer privacy as a result of their ties to Beijing.

    In two separate statements about the three wireless carriers, the FCC used the same language, saying all three companies “are indirectly and ultimately owned and controlled by the government of the People’s Republic of China.” China Unicom, as well as Pacific Networks and its subsidiary, ComNet, were all asked last year to make a case as to why they don’t pose a threat and shouldn’t be banned.

    “In 2019, when we blocked China Mobile USA from entering the U.S. market based on national security concerns, I said it was time for a top to bottom review of every telecom carrier with ties to the communist regime in China,” said Commissioner Brendan Carr. “Many of these firms were authorized to operate in the U.S. decades ago and the security threats have evolved substantially in the intervening years. With that type of review in mind, the FCC opened investigations into several carriers—including the carriers at issue here, China Unicom Americas, Pacific Networks, and ComNet. We have provided them with the process necessary for the FCC to identify and eliminate any threats they may pose to America’s national security.

    “These three carriers provided incomplete and inconsistent responses that failed to address these threats and in turn raised fresh concerns about their ability to follow FCC rules. The Executive Branch agencies with responsibility for national security reviews have echoed these concerns and advise that traffic on these networks ‘remains subject to exploitation, influence, and control by the Chinese government.’ I therefore agree with the Commission’s determination today. The potential national security threats posed by these carriers requires the FCC to initiate revocation proceedings.”

    Any hope Chinese companies had of being under less scrutiny with the Biden administration appears to be fading fast.

  • FCC Goes After Telecoms With Ties to China

    FCC Goes After Telecoms With Ties to China

    The Federal Communications Commission (FCC) has thrown down the gauntlet, going after telecom companies that have strong ties to Beijing.

    The U.S. has engaged in some very public battles with Chinese firms, including Huawei and ZTE, citing issues of national security. In its latest move, the FCC has “issued Show Cause Orders to four telecom companies with ties to the communist regime in China.” A Show Cause Order gives the companies 30 days to make the case as to why their authority to operate within the U.S. should not be revoked. The companies in question are ComNet, China Telecom Americas, China Unicom Americas and Pacific Networks.

    “Over the past few weeks, Americans have learned that they no longer need to page through dusty foreign policy magazines to understand the consequences that flow from communist China’s brutal crackdown on freedom and free speech,” writes Commissioner Brendan Carr. “The communist party’s silencing of critics and its disappearance of hero doctors and citizen journalists exacerbated the global spread of Covid-19. Americans are now experiencing the consequences of those oppressive actions in their own lives—whether in the loss of their jobs or their kids not being able to attend school due to Covid-19.

    “Since communist China is willing to disappear its own people to advance the regime’s geopolitical agenda, it is appropriate for the FCC to closely scrutinize telecom carriers with ties to that regime. This is a prudent step to ensure the security of America’s telecom networks. In the Show Cause orders issued today, we give carriers 30 days to explain why the FCC should not initiate proceedings to revoke their authority. They now have the opportunity to provide evidence showing that they are not subject to the exploitation, influence, and control of the Chinese government such that we should not look to revoke their authority to operate in the U.S. I look forward to reviewing the record that develops and reaching a final decision on those key issues.”

    It’s unknown what impact the FCC’s actions will have on trade relations with China, although Beijing has vowed retaliation in the past when action has been threatened against one of its companies.