Page:2020-06-09 PSI Staff Report - Threats to U.S. Communications Networks.pdf/79

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national security or law enforcement risks.[1] The FCC's referral noted that CUA's ultimate parent company was a state-owned enterprise.[2] The FCC asked that Team Telecom relay any concerns by September 3, 2002 "because [the FCC was] prepared to take action on the [ ] application[ ]."[3]

Neither the FCC nor Team Telecom had any record of Team Telecom raising concerns about the application. On September 13, 2002, the FCC issued a public notice formally accepting CUA's application for filing.[4] Because Team Telecom raised no concerns about the application, the FCC granted the application two weeks later.[5]

2. Team Telecom Has Never Engaged in Post-Authorization Oversight of CUA

Team Telecom never entered into a security agreement with CUA, despite CUA having filed pro forma notices with the FCC giving Team Telecom the opportunity to request such an agreement. For example, CUA filed notices in 2008 and 2009 regarding organizational changes associated with the Chinese government's restructuring of the Chinese telecom industry, China Unicom's merger with China Netcom, and changes to the company name.[6] More recently, in


  1. See FCC-PSI-000213-14.
  2. See id.
  3. See id.
  4. See Fed. Commc'ns Comm'n, Public Notice—International Applications Accepted for Filing, Rep. No. TEL-00575S, at 2 (Sept. 13, 2002).
  5. See Fed. Commc'ns Comm'n, Public Notice—International Authorizations Granted, Rep. No. TEL-00581, DA No. 02-2500, 17 FCC Red 19181, 19182 (Oct. 3, 2002) (listing the "date of action" authorizing the application as September 27, 2002—14 days after FCC's acceptance of filing public notice). China Netcom (USA) Operations Limited also applied for Section 214 authorization in 2002 to serve as a facilities based carrier. Fed. Commc'ns Comm'n, Public Notice—International Applications Accepted for Filing, Rep. No. TEL-00568S, at 2 (Aug. 28, 2002). The FCC referred the application to Team Telecom, see FCC-PSI-000227-28, but Team Telecom never raised any concerns about the application. The FCC approved the application two weeks after accepting it for filing. See Fed. Commc'ns Comm'n, Public Notice—International Authorizations Granted, Rep. No. TEL-00576, DA 02-2234, 17 FCC Red 16825, 16826 (Sept. 12, 2002) (listing the "date of action" authorizing China Netcom's application as September 11, 2002—14 days after acceptance of filing). As part of a government-organized restructuring, effective January 1, 2009, China Netcom, China Netcom USA's parent company, was merged with and into China Unicom. As part of the merger, China Netcom USA was merged into CUA, effective August 31, 2009, and China Netcom USA's Section 214 authorization was assigned to CUA. See Fed. Commc'ns Comm'n, Public Notice—International Authorizations Granted, Rep. No. TEL-01391, DA 09-2218, 24 FCC Red 12611, 12613 (Oct. 15, 2009) ("Notification filed September 30, 2009 of the pro forma assignment of international section 214 authorization, ITC-214-20020728-00361, held by China Netcom (USA) Operations Limited ('China Netcom USA') to China Unicom (Americas) Operations Limited, effective August 31, 2009."). As a result, CUA currently holds two international Section 214 authorizations.
  6. See, e.g., Fed. Commc'ns Comm'n, Public Notice—International Authorizations Granted, Rep. No. TEL-01331, DA 08-2650, 23 FCC Red 17386, 17387 (Dec. 4, 2008) (File No. ITC-T/C-20081114-00499 & ITC-T/C-20081114-00500 referencing a restructuring of ownership interests as a result of China

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