Today, the Federal Communications Commission (“FCC”) released the final text of a Notice of Proposed Rulemaking (“NPRM”) aimed at identifying FCC regulated entities that are controlled by a “foreign adversary.”

This development, along with a separate action recently taken by the FCC to adopt new rules that prohibit the use of test labs or telecommunication certification bodies located in certain jurisdictions outside the U.S., reflect a continued and growing focus by the FCC on national security, particularly with respect to foreign ownership.

The NPRM proposes to, among other things:

• Define a “foreign adversary” as “any foreign government or foreign non-government person determined by the Secretary [of Commerce] to have engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the United States or security and safety of United States persons.”

• Require entities holding certain licenses or authorizations to certify whether they are  owned or controlled by, or subject to the jurisdiction of, a foreign adversary.
  • Entities that respond affirmatively would be required to disclose all (both foreign and non-foreign) ownership interests of 5% or greater to the FCC.
• Require an initial certification and a new certification within 30 days of any changes to ownership involving a foreign adversary or a new ownership interest of 5% or greater.
  • A streamlined revocation procedure is proposed for entities that fail to timely, accurately, or completely respond to the certification and information collection requirements.
• Determine the scope of entities and licenses that should be subject to the proposed certification and reporting requirements.

Comments on the NPRM will be due 30 days after publication in the Federal Register, which has not yet occurred.