Page:2020-06-09 PSI Staff Report - Threats to U.S. Communications Networks.pdf/91

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objection to the FCC approving the application, provided that the FCC condition its approval on Pacific Networks' agreement to abide by the commitments and undertakings it made to DOJ, and DHS.[1] Those commitments and undertakings were outlined in a September 2, 2008 letter from Pacific Networks to Team Telecom, which included some of the same commitments contained in CTA's 2007 security agreement.[2] For example, among other items, Pacific Networks committed to (1) ensuring that U.S. records were made available in response to lawful U.S. process; (2) ensuring that U.S. records were not “made subject to mandatory destruction" under foreign laws; (3) take all practicable measures to prevent unauthorized access to, or disclosure of the content of, communications or U.S. records; (4) maintain a point of contact within the United States with the authority and responsibility for accepting and overseeing compliance with a lawful demand by U.S. law enforcement authorities; and (5) notify DOJ and DHS of any material changes in any of the facts in the security agreement, including any increase or decrease in foreign government control.[3] The FCC granted Pacific Networks' application effective September 3, 2008, conditioned on Pacific Networks abiding by its commitments to Team Telecom.[4]

3. ComNet's Integration with Pacific Networks Prompted Further Team Telecom Scrutiny and Resulted in a Security Agreement

As noted above, CITIC acquired ComNet and made ComNet a wholly-owned subsidiary of Pacific Networks.[5] In connection with this organizational change, ComNet sought FCC approval to transfer control of a portion of its 1999 Section 214 authorization to Pacific Networks-specifically, with respect to the U.S.-China and U.S.-Hong Kong routes, the authority to provide switched services through the resale of unaffiliated U.S. facilities-based carriers' international switched


  1. In the Matter of Pacific Networks Corp. Application for Authority to Provide Switched Resale Service Between the United States and Permissible Int'l Points (File No. ITC-214-20070907-00368)—Petition to Adopt Conditions to Authorizations and Licenses (filed Sept. 3, 2008), https://fcc.report/IBFS/ITC-214-20070907-00368/661672 (unofficial website).
  2. Letter from Yuen Kee Tong, Chairman, Pacific Networks Corp., to Stewart Baker, Assistant Sec'y for Policy, Dep't of Homeland Sec., & Patrick Rowan, Acting Assistant Att'y Gen. for Nat'l Sec., Dep't of Justice (Sept. 2, 2008).
  3. Id.
  4. Fed. Commc'ns Comm'n, Public Notice—International Authorizations Granted, Rep. No. TEL-01304, DA No. 08-2037, 23 FCC Red 13265, 13266 (Sept. 4, 2008) (listing the "date of action" authorizing the application as September 3, 2008).
  5. CM Tel (USA) LLC, Application for Transfer of Control of International Section 214 Authority, File No. ITC-T/C-20080913-00428, Attach. 1 (filed Sept. 13, 2008), https://fcc.report/IBFS/ITC-T-C-20080913-00428 (unofficial website).

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