ownership changes had occurred since it executed the 2009 security agreement.[1] ComNet represented during the meeting that the Chinese government had "passive" involvement in the company's day-to-day operations, providing no input into operational decision-making.[2] In terms of law enforcement processes, ComNet confirmed its ability to implement call monitoring within one hour of a lawful requests.[3] The call monitoring included determining telephone numbers of call parties and monitoring specific calling card accounts.[4]
Ultimately, Team Telecom made no findings or recommendations specific to ComNet. The memo noted that Team Telecom should
reassess [its] collective strategy in dealing with foreign state-owned companies... that provide telecommunications services in the United States. Further recommendations regarding [ComNet's] license are pending the completion of [Team Telecom's] ongoing comprehensive review of foreign state-owned companies holding telecommunications licenses in coordination with the FCC.[5]
According to one official, the recommendation was a reference to Team Telecom's review of China Mobile USA's application and reflected Team Telecom's evolving understanding regarding foreign state-owned companies, particularly Chinese companies.[6]
Between March 2014 and late 2017, Team Telecom officials provided the Subcommittee with one communication with ComNet—a July 2015 letter ComNet
submitted in response to a Team Telecom request for an update on any operational changes since the February 2014 site visit.[7] In September 2017, Team Telecom contacted ComNet's external counsel, who confirmed "ComNet and Pacific Networks . . . remain in operation."[8] A month later, Team Telecom requested
- ↑ Id. at DHS00460PSI-61.
- ↑ Id. at DHS00462PSI. ComNet informed the Subcommittee that it has "consistently" informed Team Telecom and the FCC that the Chinese government has indirect ownership in the companies, has not been involved in operational decision-making, and has not been involved "passive or otherwise" in ComNet's or Pacific Networks' day-to-day operations. Letter from Lerman Senter PLLC, counsel to ComNet, to the Subcommittee (June 2, 2020) (on file with the Subcommittee).
- ↑ DHS00460PSI-465, at DHS00464PSI.
- ↑ DHS00460PSI-465.
- ↑ Id. at DHS00460PSI.
- ↑ Briefing with the Dep't of Homeland Sec. (Feb. 7, 2020).
- ↑ DHS00321PSI-22. In its recent response to the FCC's Show Cause Order, ComNet included a September 2014 email in which it provided Team Telecom with copies of the company's corporate charts. See In the Matter of Pacific Networks Corp. and ComNet (USA) LLC, Response to Order to Show Cause, GN Docket No. 20-111, at Exhibit K (June 1, 2020), http://licensing.fcc.gov/cgi-bin/ws.exe/prod/ib/forms/reports/related_filing.hts?f_key=710677&f_number=ITC2142009042400199 (Email from Tammie Tam, Legal Consultant, CITIC Telecom Int'l Holdings Ltd. to Dep't of Homeland Sec. & Dep't of Justice (Sept. 3, 2014) (other senders and recipients redacted)).
- ↑ TT-DOJ-392-99, at TT-DOJ-398.
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