“It is well understood that the national security environment evolves over time. It is this constant evolution that highlights a major flaw with the FCC’s Section 214 authorizations: once authorized, a company can operate indefinitely without any oversight. Without proper oversight, foreign carriers operating in the United States can expose the United States to potential economic, national security, and law enforcement risks. The federal government has highlighted the potential risks associated with Chinese telecommunications carriers operating in the United States. Three particular carriers have been operating in the United States for approximately 20 years, without sufficient oversight from the FCC and the Executive Branch. Especially when dealing with state-owned telecommunications carriers, greater controls are needed, and the Administration and Congress must work together to ensure sufficient safeguards and oversight mechanisms are in place.”  p.100

“Today, Section 214 authorization covers a carrier’s provision of “telecommunications services,” defined as the “offering of telecommunications for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used.”140 The FCC’s rules divide telecommunications services into (1) facilities-based services—where a carrier provides services across its own infrastructure and facilities,141 and (2) resale services—where a carrier sells services provided through another carrier’s network.142″    p.34

“Over time, the FCC formalized its international Section 214 application review process, including documenting the criteria it considers in evaluating applications.145 The FCC has also taken a number of steps to streamline the process for reviewing and approving applications.146”   p.35

“The FCC Does Not Periodically Review Section214 Authorizations Once Granted”

“As long as the authorized carrier pays annual regulatory fees, files regular reports, and otherwise complies with the FCC’s rules, the authorization to operate and provide services effectively extends indefinitely.162 A carrier can install, replace, or make other changes to its operations and equipment, so long as it does not impair the adequacy or quality of service provided.163 A carrier can also use its international Section 214 authorization to demonstrate legitimacy of its operations in seeking interconnections with U.S. or other foreign carriers.164 This means that a foreign carrier can operate for years, if not decades, at a time, without regard to the evolving global environment.”  p.36-37

“..Team Telecom had no formal procedures, policies, or guidelines governing its review of Section 214 applications. This informality resulted in protracted review periods and a process FCC commissioners described as “broken,”173 and an “inextricable black hole” that provided “no clarity for [the] future.”174”   p.38

“Even where a security agreement was entered, however, Team Telecom’s process for monitoring compliance with that agreement was haphazard.” p.39

“As noted above, the FCC did not conduct further review of the issues—the foreign carrier’s application was streamlined and deemed approved within 14 days.181″ p.40

“It is this constant evolution that highlights a major flaw with the FCC’s Section 214 authorizations: once authorized, a company can operate indefinitely without any oversight. Without proper oversight, foreign carriers operating in the United States can expose the United States to potential economic, national security, and law enforcement risks.” p.100