The Federal Communications Commission (FCC) has started a proceeding to determine whether to terminate the authority of Pacific Networks and its ComNet subsidiary to provide telecommunications services within the U.S.
FCC said Wednesday it issued a show cause order to Pacific Networks and ComNet, which are Chinese state-owned entities, in 2020 to explain why the commission should not begin the process for ending their domestic and international authorizations under section 214 of the Communications Act.
The commission assessed the companies’ response and comments from agencies within the executive branch and “determined that Pacific Networks and ComNet have failed at this stage to dispel serious concerns regarding their retention of section 214 authority in the United States.”
FCC said the launch of the proceeding will allow the entities to present additional evidence and respond to specific questions.
