Media Contact: 
Will Wiquist
will.wiquist@fcc.gov

For Immediate Release

FCC ENFORCEMENT BUREAU REMINDS COMPANIES OF FOREIGN OWNERSHIP AND INVESTMENT DISCLOSURE OBLIGATIONS
Timely and Transparent Disclosures Impact U.S. National Security and Law Enforcement Interests  -- 

WASHINGTON, April 20, 2023—The Federal Communications Commission’s Enforcement Bureau today issued an Enforcement Advisory to remind license holders and authorized telecommunications providers with reportable foreign ownership, investment, or control of their obligations to file prompt, accurate, and complete information with the Commission.  This includes transfers of these licenses and authorizations, as well as filings in the forthcoming, one-time foreign ownership information collection adopted earlier today by the Commission at its monthly meeting.

“There are consequences for failing to file accurate or timely information with the FCC about changes related to foreign involvement in companies with access to U.S. communications networks,” said Loyaan A. Egal, Chief of the Enforcement Bureau.  “When it comes to assessing U.S. national security and law enforcement interests, we will be vigilant in ensuring that companies comply with these important disclosure requirements.”

Under the law, entities holding FCC licenses or authorizations to provide telecommunications services in the U.S. must receive prior authorization from the FCC before transferring or assigning any ownership stake.  Also, broadcast, common carrier, and aeronautical radio station license holders are limited to a 25% foreign ownership stake unless expressly approved by the FCC.

Today’s Enforcement Advisory helps reiterate to entities with reportable foreign ownership, investment, or control their important FCC reporting obligations under the law.  This applies not only to license and authorization transactions and changes in owners’ controlling stakes, but will apply to the FCC’s just-adopted Order to begin a one-time collection of information from international Section 214 authorization holders.  

In recent years, the FCC has taken strong enforcement actions against violations of these rules.  These include a $1.1 million settlement and compliance plan with the Mexican company América Móvil for failing to secure prior authorization for changes in the control of its subsidiary and FCC-licensee Puerto Rico Telephone Company as América Móvil’s owner, Carlos Slim Helú, and his family bought additional stock in the company.  Most recently, the FCC proposed a fine and then reached a settlement with Truphone, Inc. to pay a $600,000 penalty, fully divest Russian ownership interests, and ensure all foreign investment complies with the Treasury Department’s sanctions list.

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This is an unofficial announcement of Commission action.  Release of the full text of a Commission order constitutes official action.  See MCI v. FCC, 515 F.2d 385 (D.C. Cir. 1974).