services.[1] The FCC referred ComNet's transfer of control application to Team Telecom for review.[2]
In December 2008, Pacific Networks filed a notice of surrender of its September 2008 Section 214 authorization with the FCC.[3] Pacific Networks claimed the surrender was the result of "necessary financial circumstances" leading Pacific Networks' indirect parent company to undergo "a transfer of control that cannot be delayed pending Commission approval."[4] The relevant transfer of control involved a consolidation of some CITIC holding companies, resulting in the Chinese government acquiring a greater interest in CITIC, and by extension Pacific Networks and ComNet.[5]
In January 2009, Pacific Networks applied for a new international Section 214 authorization.[6] This time, Pacific Networks sought authority to provide resale services to all international routes.[7] It subsequently clarified with the FCC that it sought authority to provide resale service on all U.S. routes except to China and Hong Kong; with respect to those two locations, the company would be authorized to
- ↑ Id.; Letter from Joshua T. Guyan to Fed. Commc'ns Comm'n Int'l Bureau (Apr. 22, 2009). Resale could be done directly or indirectly through the resale of another U.S. resale carrier's international switched services.
- ↑ FCC-PSI-000154-55. At the time the transfer request was sent to Team Telecom, the Chinese Government held a 14 percent indirect ownership (29 percent attributable interest) in ComNet through various intervening companies, and therefore, ComNet was considered "affiliated with Chinese carriers owned or controlled by the Chinese Government." See id. The Chinese government increased its indirect holdings in CITIC in January 2009, as described more below.
- ↑ See Letter from Joshua T. Guyan to Fed. Commc'ns Comm'n Int'l Bureau (Dec. 23, 2008).
- ↑ See id. Prior to surrendering the authorization, Pacific Networks filed for special temporary authority to "transfer control of Pacific Networks Corporation from CITIC Pacific Limited to CITIC Group pending Commission action on an underling transfer of control application." See FCC-PSI-000510-26. Pacific Networks indicated that the transfer of control was necessary to strengthen its liquidity due to certain realized losses and was unrelated to telecommunications services. See FCC-PSI-000510–26. It appears that the FCC did not rule on the special temporary authority request prior to Pacific Networks surrendering its authorization. The FCC issued a public notice of the surrender on January 2, 2009. Fed. Commc'ns Comm'n, Public Notice—International Authorizations Granted, Rep. No. TEL-01335, DA 09-2, 24 FCC Red 16, 19-20 (Jan. 2, 2009) (listing the effective date of the surrender as Dec. 23, 2008).
- ↑ Compare Pacific Networks Corp., International Section 214 Application File No. ITC-214-20070907-00368, Attach. 1, https://fcc.report/IBFS/ITC-214-20070907-00368 (unofficial website) (referencing the Chinese Government's 14 percent indirect ownership (29 percent attributable interest)) with Pacific Networks Corp., International Section 214 Application File No. ITC-214-20090105-00006, Attach. 1, https://licensing.fcc.gov/cgi-bin/ws.exe/prod/ib/forms/attachment_menu.hts?id_app_num=76226&acct=575631&id_form_num=2&filing_key=-158718 (referencing the Chinese government's 57.6 percent attributable interest).
- ↑ See Pacific Networks Corp., International Section 214 Application File No. ITC-214-20090105-00006, https://licensing.fcc.gov/cgi-bin/ws.exe/prod/ib/forms/attachment_menu.hts?id_app_num=76226&acct=575631&id_form_num=2&filing_key=-158718; Fed. Commc'ns Comm'n, Public Notice—International Applications Accepted for Filing, Rep. No. TEL-01338S, at 2 (Jan. 16, 2009).
- ↑ Id.
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