FCC Seeks Further Comment on Foreign Ownership Policies

In the Notice of Proposed Rulemaking in this docket, the Federal Communications Commission sought comment on proposals to revise and simplify the policies and procedures that apply to foreign ownership of common carrier and aeronautical radio station licensees pursuant to section 310(b)(4) of the Communications Act of 1934, as amended (the “Act”).

Although the FCC did not specifically seek comment on its policies and procedures relating to section 310(b)(3), several commenters in this docket have asked the FCC to find that all “indirect” foreign interests in a common carrier licensee should be governed under section 310(b)(4), rather than section 310(b)(3). They are concerned that applying section 310(b)(3) to “indirect” foreign interests in common carrier licensees may limit the flexibility of foreign investors in structuring their investments. Commenters also state that applying section 310(b)(3) to foreign interests in a licensee held through an intervening U.S.-organized entity that does not control the licensee (which commenters term “indirect non-controlling” foreign interests) is inconsistent with the U.S. commitments in the WTO Basic Telecom Agreement. Commenters state that a determination that section 310(b)(3) does not apply in this situation would be one of the “most helpful actions” the FCC could take to further this proceeding’s goals of reducing unnecessary regulatory barriers to foreign investment that can benefit innovation, economic growth, and employment in the United States.