The Foreign Adversary Communications Transparency Act mandates the FCC to identify and publish a list of entities with foreign ownership that hold FCC licenses or authorizations, and to update this list annually.
Robert Wittman
Representative
VA-1
The Foreign Adversary Communications Transparency Act directs the FCC to identify and publish a list of entities holding FCC authorizations, licenses, or grants of authority that have reportable equity or voting interests held by a "covered entity," meaning governments, entities, or subsidiaries from countries considered foreign adversaries, as well as entities controlled by these adversaries based on national security agency determinations. The FCC is required to create rules to gather information, expand the list, and update it annually. This act aims to increase transparency regarding foreign ownership and control within U.S. communications networks.
FCC Must Publicly List Telecom License Holders with Ties to China, Russia, Iran, North Korea Under New Act
This new piece of legislation, the Foreign Adversary Communications Transparency Act, directs the Federal Communications Commission (FCC) – the agency overseeing the nation's airwaves and communication networks – to create and maintain a public list. This list will identify companies holding FCC licenses or authorizations that have ownership ties to governments or entities from specific countries deemed 'covered countries': China, Russia, Iran, and North Korea. The initial version of this list, focusing on specific types of licenses (like those for spectrum auctions or submarine cable landings), must be published on the FCC website within 120 days of the law taking effect.
Unpacking the Watchlist: Who Gets Listed and When?
Think of this as a transparency measure focused on who has influence over parts of our communication systems. The bill defines a 'covered entity' broadly – it includes the governments of those four nations, any company organized under their laws, and even subsidiaries of those companies, no matter where the subsidiary itself is based.
The process rolls out in stages. First, that 120-day deadline hits for an initial list covering holders of licenses granted via spectrum auctions (under Section 309(j) of the Communications Act) or related to submarine cable landings (under the Act of May 27, 1921, and Executive Order 10530). This initial list also includes any entity where a national security agency flags control by a 'covered entity'.
Casting a Wider Net: Rulemaking and Annual Updates
But that's just the start. Within 18 months, the FCC has to establish formal rules to gather information and identify all other holders of any FCC authorization, license, or grant (beyond those on the initial list) that have reportable ownership stakes held by 'covered entities'. Once those rules are set, the FCC has another year to add these newly identified companies to the public list. After that, the list must be updated at least once a year.
The Fine Print: What Does This Mean Practically?
For companies operating in the U.S. communications sector with investment or ownership links back to entities in China, Russia, Iran, or North Korea, this means their names will be on a public FCC list. This increased visibility could impact business relationships, investments, or public perception, even though this specific bill only mandates the listing itself.
One notable detail is the exemption from the Paperwork Reduction Act (PRA). Usually, the PRA requires federal agencies (like the FCC) to justify their information requests and ensure they aren't overly burdensome, involving review by the Office of Management and Budget. By exempting this process, the bill allows the FCC to collect the necessary ownership information potentially more quickly, but with fewer checks on whether the data requests are efficient or minimally burdensome for the companies involved. The goal is transparency about foreign ownership in the communications space, but the broad definition of 'covered entity' and the PRA exemption are details worth watching as this rolls out.