2017, CUA filed a pro forma notice of transfer of control, when China Unicom Global Limited became the direct owner of CUA following a restructuring of the parent companies.[1] When questioned by Subcommittee staff, Team Telecom officials stated they were not aware of the 2017 filing and could not explain why it did not prompt a security review by Team Telecom.[2] One Team Telecom official noted that the U.S. government's understanding of the risks posed by Chinese state-owned entities evolved over time and that Team Telecom believed the appropriate sequencing was to complete review of China Mobile USA's application before assessing Chinese state-owned carriers with existing authorizations.[3]
Because no security agreement exists between Team Telecom and CUA, Team Telecom is not "directly in privity"[4] with the company and has no insight into its operations.[5] CUA representatives confirmed that it has not engaged with Team Telecom in the nearly 20 years since obtaining Section 214 authorization.[6] Team Telecom officials acknowledged that, without a security agreement, they have no ability to engage CUA.[7] One official suggested that Team Telecom could
- ↑ See China Unicom (Americas) Operations Limited, Notification of Pro Forma Transfer of Control of Section 214 Authority, File No. ITC-T/C-20170301-00025, Attach. 1 (filed Mar. 1, 2017), https://fcc.report/IBFS/ITC-T-C-20170301-00025 (unofficial website); Fed. Commc'ns Comm'n, Public Notice—International Authorizations Granted, Rep. No. TEL-01840, DA 17-297, 32 FCC Red 2087, 2094 (Mar. 30, 2017). The restructuring "did not change the ultimate ownership or control of [China Unicom Americas] as the [Chinese] government continues to maintain ownership and control over [China Unicom Americas] and will continue to do so." See China Unicom (Americas) Operations Limited, Notification of Pro Forma Transfer of Control of Section 214 Authority, File No. ITC-T/C-20170301-00025, Attach. 1 (filed Mar. 1, 2017), https://fcc.report/IBFS/ITC-T-C-20170301-00025 (unofficial website).
- ↑ Briefing with the Dep't of Justice (Apr. 3, 2020); Briefing with the Dep't of Homeland Sec. (Feb. 7, 2020). Officials noted that the FCC does not refer pro forma notices to Team Telecom, see Email from the Dep't of Homeland Sec. to the Subcommittee (June 4, 2020) (on file with the Subcommittee); yet, it was a similar notice from CTA that led to its 2007 security agreement.
- ↑ Briefing with the Dep't of Homeland Sec. (Feb. 7, 2020); Email from the Dep't of Homeland Sec. to the Subcommittee (June 4, 2020) (on file with the Subcommittee).
- ↑ Briefing with the Dep't of Justice (Aug. 1, 2019).
- ↑ Id.; Briefing with the Dep't of Homeland Sec. (Feb. 7, 2020).
- ↑ Briefing with China Unicom Americas (Apr. 16, 2020).
- ↑ Briefing with the Dep't of Homeland Sec. (Feb. 7, 2020).
Unicom's merger with China Netcom); Fed. Commc'ns Comm'n, Public Notice—International Authorizations Granted, Rep. No. TEL-01351, DA 09-677, 24 FCC Red 3644, 3647 (Mar. 26, 2009) (File No. ITC-T/C-20090204-00082 & ITC-T/C-20090204-00083 referencing restructuring involving China Netcom's merger with China Unicom); 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) (File No. ITC-ASG-20090930-00433 referencing assignment of China Netcom USA's authorization to CUA); Fed. Commc'ns Comm'n, Public Notice—International Authorizations Granted, Report No. TEL-01396, DA 09-2406, 24 FCC Red 13706, 13708 (Nov. 12, 2009) (File No. ITC-214-20020724-00427 referencing that "[b]y letter filed September 30, 2009, Applicant notified the Commission that it changed its name from China Unicom USA Corporation to China Unicom (Americas) Operations Limited (China Unicom Americas), effective August 31, 2009"). Typically, the FCC does not request that Team Telecom review these pro forma notices. FCC Proposed Executive Branch Review Reform, supra note 154, at ¶ 47.
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