[Congressional Record Volume 143, Number 27 (Wednesday, March 5, 1997)]
[Senate]
[Page S1995]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN (for himself and Mr. Burns):
  S. 407. A bill to amend the Communications Act of 1934 to clarify the 
authority of the Federal Communications Commission to authorize foreign 
investment in United States broadcast and common carrier radio 
licenses; to the Committee on Commerce, Science, and Transportation.


   the international telecommunications investment clarification act

 Mr. McCAIN. Mr. President. I introduce legislation designed to 
clarify the authority of the FCC to authorize foreign investment in 
United States broadcast and common carrier radio licenses. Joining me 
today, is Chairman Burns of the Subcommittee on Communications.
  Mr. President, American companies and consumers worldwide will 
benefit tremendously from the passage of this legislation. No one can 
deny that U.S. telecommunications services providers ability to compete 
in the global market is hampered by the restrictions that we place upon 
foreign companies seeking to do business here. The problem is quite 
simple: the more restrictive the foreign ownership rules are here in 
the U.S., the more oppressive are the regulations that are placed on 
United States companies in other countries. The solution is just as 
simple: the greater the willingness by the United States to permit 
foreign ownership of U.S. companies, the greater the success of the 
U.S. companies wishing to maximize their ownership opportunities 
overseas.
  This bill accomplishes just that by amending section 310(b) to: 
First, remove the statutory limitation on foreign indirect investment 
in U.S. corporations holding common carrier or aeronautical radio 
licenses (but not broadcast licenses); second, allow foreign direct 
investment greater than 20 percent in U.S. corporations holding common 
carrier or aeronautical radio licenses, if the FCC finds it in the 
public interest; third, explicitly prohibit any corporation with more 
than 20 percent foreign government ownership from holding common 
carrier, aeronautical or broadcast licenses.
  It is clear that lowering barriers to foreign ownership in this 
country will result in greater opportunities for U.S. service providers 
overseas. The ripple effect on the U.S. telecommunications industry as 
a whole would increase the benefits across the board from consumers to 
manufacturers to service providers. The only way for the United States 
to effectively lead the world in establishing an expansive global 
marketplace is to set the standard in this country by which U.S. 
companies want to be measured overseas. Liberalizing foreign ownership 
restrictions under 310(b) would send that message to our foreign 
partners loud and clear.
  That is why I am introducing this bill, and I encourage my colleagues 
to join me and support the legislation.
  Mr. President, I ask unanimous consent that additional material be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 407

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``International 
     Telecommunications Investment Clarification Act''.

     SEC. 2. FOREIGN OWNERSHIP.

       Section 310(b) of the Communications Act of 1934 (47 U.S.C. 
     310(b)) is amended to read as follows:
       ``(b)(1) No broadcast or common carrier or aeronautical en 
     route or aeronautical fixed radio station license shall be 
     granted to or held by--
       ``(A) any alien or the representative of any alien;
       ``(B) any corporation organized under the laws of any 
     foreign government; or
       ``(C) any corporation of which more than one-fifth of the 
     capital stock is owned of record or voted by a foreign 
     government or representative thereof.
       ``(2) No common carrier or aeronautical en route or 
     aeronautical fixed ratio station license shall be granted to 
     or held by any corporation of which more than one-fifth of 
     the capital stock is owned of record or voted by aliens or 
     their representatives or by any corporation organized under 
     the laws of a foreign country, if the Commission finds that 
     the public interest will be served by the refusal or 
     revocation of such license.
       ``(3) No broadcast radio station license shall be granted 
     to or held by--
       ``(A) any corporation of which more than one-fifth of the 
     capital stock is owned of record or voted by aliens or their 
     representatives or by any corporation organized under the 
     laws of a foreign country; or
       ``(B) any corporation directly or indirectly controlled by 
     any other corporation of which more than one-fourth of the 
     capital stock is owned of record or voted by aliens, their 
     representatives, or by a foreign government or representative 
     thereof, or by any corportation organized under the laws of a 
     foreign country, if the Commission finds that the public 
     interest will be served by the refusal or revocation of such 
     license.''.

     SEC. 3. SUBMARINE CABLE AMENDMENT.

       Section 2 of the Act of May 27, 1921, entitled ``An Act 
     relating to the landing and operation of submarine cables in 
     the United States'' (47 U.S.C. 35), is amended by inserting 
     before the period at the end thereof the following: ``: And 
     provided further, That the Federal Communications Commission 
     shall not deny any license to land or operate such a cable 
     solely on the grounds that such license will be issued to a 
     corporation that is directly or indirectly owned by aliens, 
     their representatives, or by any corporation organized under 
     the laws of a foreign government''.

     SEC. 4. EFFECTIVE DATE; REGULATIONS.

       (a) Effective Date.--This Act and the amendments made by 
     this Act are effective upon enactment.
       (b) Regulations.--Within 60 days after the date of 
     enactment of this Act, the Federal Communications Commission 
     shall take all actions necessary to implement this Act, 
     including amending its rules and regulations, but the 
     Commission shall not, after such effective date, take any 
     action to enforce any rule, regulation, or policy that is 
     inconsistent with the amendments made by this Act.
                                  ____


 International Telecommunications Investment Bill--Section-by-Section 
                                Summary

       A Bill to amend the Communications Act of 1934 to clarify 
     the authority of the FCC to authorize foreign investment in 
     United States broadcast and common carrier radio licenses.
       Section 1. Short Title. This Act may be cited as the 
     ``International Telecommunications Investment Clarification 
     Act''.
       Section 2. Amendments to the Communications Act of 1934. 
     Section 310(b) is amended to: (a) remove the statutory 
     limitation on foreign indirect investment in U.S. 
     corporations holding common carrier or aeronautical radio 
     licenses (but not broadcast licenses); (b) allow foreign 
     direct investment greater than 20% in U.S. corporations 
     holding common carrier or aeronautical radio licenses, if the 
     FCC finds it in the public interest; (c) explicitly prohibit 
     any corporation with more than 20% foreign government 
     ownership from holding common carrier, aeronautical or 
     broadcast licenses.
       Section 3. Amendment to the Submarine Cable Act. Clarify 
     that the Submarine Cable Landing License may not be denied to 
     an applicant solely on the basis of foreign investment or 
     ownership.
       Section 4. Effective Date. Effective upon enactment. Allow 
     the FCC 90 days to amend its rules.
                                 ______