The FCC has proposed rules to codify certain foreign ownership requirements and streamline its review processes. To account for increasingly complex foreign ownership structures over the past decade, the Commission has employed certain practices but has never codified them into its rules. The changes would impact common carrier, broadcast and aeronautical radio licensees.
Without clear definitions, it’s harder for entities to understand and navigate FCC requirements, which puts them at risk for inconsistent outcomes, and can needlessly raise costs, say agency officials. Monday’s action takes steps to define and simplify these requirements.
“Having unwritten—or at least uncodified—rules is not very efficient,” said FCC Chairman Brendan Carr during the vote. “This only makes it harder for entities to understand and navigate our requirements. And it risks inconsistent outcomes, needlessly raises costs, and wastes staff resources.”
The Commission supports robust foreign investment in U.S. companies and networks, which it says can help foster technical innovation, create jobs, and ultimately increase U.S. economic growth. Certain foreign investment, particularly from foreign adversary countries, however, may raise national security risks and other concerns, and this calls for a need to clearly define the Commission’s rules in this area.
The Notice of Proposed Rulemaking adopted 4-0 proposes solutions to these concerns for both broadcast and common carrier licensees by seeking comment on or proposing to:
- Codify existing practice regarding the designation of controlling U.S. parent;
- Clarify the Commission’s advance approval rules regarding certain deemed voting interests;
- Require identification of trusts and trustees;
- Extend the methodology for determining foreign ownership and remedial process to privately held companies;
- Clarify U.S. residency requirements; and
- Codify requirements regarding the contents of remedial petitions.
The agency will also take public comments on a number of topics including alleviating unnecessary regulatory burdens, filing of amendments, and processing broadcast applications during the remedial process, as well as other foreign ownership considerations related to the processing of applications for non-commercial educational and low power FM stations.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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