Pacific Networks, ComNet are the latest Chinese companies banned by FCC

17 Mar 2022

The Federal Communications Commission (FCC) has adopted an ‘Order on Revocation and Termination’ ending the ability of Pacific Networks Corp. and its wholly owned subsidiary, ComNet (USA), to provide domestic interstate and international telecommunications services within the United States. The Order directs the companies to discontinue any domestic or international services that they provide pursuant to their section 214 authority within sixty days.

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’.

As previously reported by CommsUpdate, in 2021 the FCC revoked the respective authorisations of China Telecom Americas and China Unicom Americas due to security concerns. FCC chairwoman Jessica Rosenworcel commented: ‘Today, we continue that work and do the same for two additional companies identified by our national security colleagues – Pacific Networks Corp. and its wholly owned subsidiary, ComNet. As before, we take this action after providing the companies with appropriate due process, including multiple opportunities to explain why we should not revoke their domestic and international authorities.’