10 FCC Red No. 18 Federal Communications Commission Record DA 95-1054
Before the
Federal Communications Commission 
Washington, O.C. 20554
File No. CRD-9S-3
In re Request of
VERMONT TELEPHONE 
COMPANY, INC.
For Declaratory Ruling Concerning 
Section 310(b)(4) of the 
Communications Act of 1934, as 
amended
MEMORANDUM OPINION AND ORDER 
Adopted: May 8,1995; Released: May 9,1995
By the Chief, Wireless Telecommunications Bureau:
1. On February 3, 1995, Vermont Telephone Company, 
Inc. ("VTC") requested a Declaratory Ruling pursuant to 
Section 1.2 of the Commission's rules' that, consistent with 
the public interest, Mr. Noel Bambrough, a Canadian citi 
zen, may serve on the board of directors of VTC's parent 
company, Vermont National Telephone Company, Inc. 
("Vermont National"). In addition, VTC seeks approval to 
appoint Messrs. Bambrough and Switzer (also a Canadian 
citizen) as senior vice presidents of Vermont National. 
Currently, all of the officers of Vermont National are 
United States citizens, and one of the four directors is a 
Canadian citizen. If the subject appointments are approved, 
two officers and two directors of Vermont National, the 
parent of the licensee, would be Canadian citizens.2 Ver 
mont National controls, but does not directly hold, a wire 
less narrowband commercial radio (i.e., paging) station, 
KCC 788 in Springfield, Vermont. VTC further represents 
that as officers and directors of Vermont National, Messrs. 
Bambrough and Switzer will not be involved in the day- 
to-day management of the station and will have no control 
or oversight of this or any other licensed facilities. The 
request for declaratory ruling was placed on public notice 
on February 22, 1995. See Public Notice, DA 95-336 (re 
leased February 22, 1995). No comments were filed in 
response to the public notice.
2. Under Section 310(b)(4) of the Communications Act 
of 1934, as amended, ("the Act"), a station license may not 
be held by:
3. By its express language, the benchmarks established in 
Section 310(b)(4) apply to entities such as VTC which 
directly or indirectly control licensees. The restrictions in 
Section 310(b)(4) of the Act reflect national security con 
cerns and are designed to guard against foreign influence 
by limiting aliens' participation in certain domestic radio 
activities. See Request for Declaratory Ruling Concerning the 
Citizenship Requirements of Sections 310(b)(3) and (4), 103 
FCC 2d 511 (1985), reconsidered in part, 1 FCC Red 12 
(1986) (Wilner & Scheiner); Coalition for the Preservation of 
Hispanic Broadcasting v. FCC, 931 F.2d 73, 79 (D.C. Cir. 
1991), cert, denied, 112 S. Ct. 298 (1991) (citing Noe v. 
FCC, 260 F.2d 739, 741 (D.C. Cir. 1958), cert, denied, 359 
U.S. 924 (1959)). Nevertheless, the statute permits licensing 
of a corporation controlled by another corporation which 
employs an alien officer where it is not contrary to the 
public interest. See Continental Illinois Venture Corp., 6 
FCC Red 1944 (Mobile Serv. Div., CCB 1991). In addition, 
the Commission has considered the nationality of an alien, 
i.e., whether the alien is from a country that has histori 
cally had friendly relations with the United States. See Data 
General Corp., 2 FCC Red 6060 (Com. Car. Bur. 1987); 
GCI Liquidating Trust, 1 FCC Red 7641 (Com. Car. Bur. 
1992).
4. In previous cases, the Commission has found that the 
public interest would not be adversely served where an 
alien officer had no control or supervision of licensee 
corporations. See Xerox Corporation, 74 FCC 2d 471 
(1979); International Telephone and Telegraph Corp., 67 
FCC 2d 604 (1978). Accordingly, in view of VTC's repre 
sentations that Messrs. Bambrough and Switzer will not be 
involved in the day-to-day operation of the subject paging 
station and will have no control or oversight of any li 
censed facilities, we do not find that Mr. Bambrough's 
participation as a director and senior vice president of 
Vermont National, and Mr. Switzers' participation as a 
senior vice president of Vermont National would be in 
consistent with the Act or the public interest.
5. Accordingly, IT IS ORDERED that the Petition for 
Declaratory Ruling filed on February 3, 1995, by Vermont 
Telephone Company, Inc. IS HEREBY GRANTED.
FEDERAL COMMUNICATIONS COMMISSION
Regina M. Keeney 
' Chief, Wireless Telecommunications Bureau
any corporation directly or indirectly controlled by 
any other corporation of which any (officer ... [is 
an] alien ... if the Commission finds that the public 
interest will be served by the refusal or revocation of 
such license.
47 U.S.C. § 310(b)(4).
1 47 C.F.R. § 1.2
2 Allowing foreign nationals to hold two of the four director 
positions would bring the precentage of directors in Vermont
National over the one fourth limit on foreign ownership al 
lowed under the satute. 47 U.S.C. § 310(b). We must therefore 
determine whether we will allow the additional foreign director.
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