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. 9337