Page:2020-06-09 PSI Staff Report - Threats to U.S. Communications Networks.pdf/87

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These services allow CUA to deliver traffic from a CUA point of presence through. CenturyLink's network to a CUA customer located in the United States.[1]

Neither Verizon, AT&T, nor CenturyLink maintains any mitigation or other agreement focused on network security with CUA.[2] As noted above, however, the U.S. carriers employ security measures that apply regardless of whether an interconnection agreement exists.[3]

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On April 24, 2020, the FCC issued an order requiring CUA to demonstrate why its Section 214 authorizations should not be revoked.[4] CUA responded to the order on June 1, 2020.[5]CUA argued that it has complied with FCC regulations and provided quality services to its customers for over two decades.[6] Further, CUA stressed that it is subject to U.S. corporate laws and has "demonstrated willingness to cooperate with U.S. law enforcement agencies when asked."[7] CUA also argued that the federal government has not highlighted any CUA activity that might endanger national security, aside from partial and indirect ownership by the Chinese government.[8] The latter, according to CUA, is not a sufficient basis for revocation.[9] Finally, CUA detailed why it is not subject to exploitation, influence, or control by the Chinese government.[10] The FCC is evaluating the information CUA submitted and considering whether to revoke its authorizations.

Similarly, in anticipation of this report being released, CUA submitted a letter to the Subcommittee seeking to distinguish CUA from "other, similar companies in the market in terms of shareholding structure, corporate governance,


  1. Id. CenturyLink purchases the same network services from the Chinese carriers in China, to allow CenturyLink to deliver traffic to a CenturyLink customer based in China. Id.
  2. See Briefing with Verizon (Sept. 4, 2019); Briefing with CenturyLink (Sept. 10, 2019); Briefing with AT&T (Sept. 17, 2019). Verizon representatives indicated that the company's contractual agreements with CUA are substantially identical to those it maintains with other carriers. Teleconference with Verizon (June 2, 2020).
  3. Briefing with Verizon (Sept. 4, 2019); Briefing with CenturyLink (Sept. 10, 2019); Briefing with AT&T (Sept. 17, 2019); Teleconference with Verizon (June 2, 2020); Email from CenturyLink to the Subcommittee (June 2, 2020) (on file with the Subcommittee); Email from Gibson, Dunn & Crutcher LLP, counsel to AT&T, to the Subcommittee (June 2, 2020) (on file with the Subcommittee).
  4. See In the Matter of China Unicom (Americas) Operations Limited, Order to Show Cause, DA 20-449 (Apr. 24, 2020), https://docs.fcc.gov/public/attachments/DA-20-449A1.pdf.
  5. See In the Matter of China Unicom (Americas) Operations Limited, Response to Order to Show Cause, GN Docket No. 20-110 (June 1, 2020), http://licensing.fcc.gov/cgi-bin/ws.exe/prod/ib/forms/reports/related_filing.hts?f_key=-32708&f_number=ITC2142002072800361.
  6. Id. at i.
  7. Id. at ii.
  8. Id. at ii, 2.
  9. Id. at 9-10.
  10. Id. at 30-32.

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