As part of an investigation into Russian ownership of American media and communications services, U.S. regulators plan to fine global mobile network operator Truphone Ltd.
The Federal Communications Commission on April 21 proposed a fine of $660,639 against Truphone for apparently exceeding statutory limits for ownership by foreign individuals or entities holding equity or voting interests in FCC-issued licenses without commission approval.
According to the agency, over several years, the ownership of Truphone and control of its FCC licenses were transferred repeatedly to foreign individuals, including dual Russian/Cypriot nationals, without accurate disclosure to and review by the commission as required by law.
Commission approval must be obtained before foreign ownership of a U.S.-organized entity that controls a common carrier radio station license exceeds 25% of the U.S. entity's equity or voting interests. Further, even after a foreign ownership ruling is granted, prior approval is required before any additional foreign individual or entity not previously approved by the commission acquires more than a 5% direct or indirect equity or voting interest in the entity.
The commission said Truphone failed to do either of these things.
Beyond the proposed fine, the FCC also on April 21 unanimously approved a notice of inquiry that would reassess spectrum receiver management.
A wireless receiver decodes transmitted information from a wireless transmitter. The item comes as the commission faces headwinds in deploying commercial spectrum policy frameworks, notably with the 5G C-band deployment dispute this past winter.
The item was initiated by Republican Commissioner Nathan Simington, who worked with Chairwoman Jessica Rosenworcel to bring the item to a vote.
"We cannot afford the next C-band fight, wherever it may be," Simington said in remarks.
The FCC in 2021 auctioned 280 MHz of spectrum in the 3.7 GHz-3.98 GHz band, a portion of what is known as the C-band. This mid-band spectrum is considered essential for 5G delivery, balancing speed and range. It provides broader coverage than high-band spectrum and faster speeds than low-band spectrum. As U.S. wireless operators were getting ready to deploy the spectrum, however, the Federal Aviation Administration warned C-band equipment would imperil airplane altimeters. This caused AT&T Inc. and Verizon Communications Inc. to delay their deployments.
Kathleen Burke, Policy Counsel at Public Knowledge, applauded the move, saying that a limited amount of spectrum bands are available.
"If our telecommunications system is going to meet the modern needs of our nation, every aspect needs to operate efficiently," Burke said in a statement.
