As we reported here, on October 26 the FCC revoked the license for the state-owned China Telecom Corp.’s U.S. business China Telecom Americas to provide domestic interstate and international telecommunications services in the United States. The order on revocation and termination was issued on November 2. On November 5, China Telecom Americas requested a stay "pending judicial review of the Commission’s November 2, 2021 order."
According to China Telecom Americas, "the Commission’s failure to designate the Section 214 revocation and termination proceedings for a hearing prior to issuance of the Order tramples on CTA’s constitutionally protected property rights, violating the Due Process Clause of the U.S. Constitution, the Administrative Procedure Act, and the Commission’s own precedent governing Section 214 authorization revocation proceedings." In addition, "the evidence proffered does not adequately support the revocation of CTA’s Section 214 authorizations."
In its request, China Telecom Americas argued as follows. First, it contended that it is likely to prevail on the merits during judicial review, on the following basis:
- The Commission arbitrarily and capriciously failed to designate this proceeding for a hearing before an Administrative Law Judge.
- The Commission’s denial of a hearing violated the Due Process Clause.
- The evidence does not support revocation or termination of CTA’s Section 214 authorizations.
- The Commission was required to give CTA an opportunity to cure any alleged violations before revoking its authorizations.
Second, it argued that China Telecom Americas and its customers will be irreparably harmed absent a stay.
And third, it argued that neither the FCC, the executive branch agencies, nor the public interest will be harmed by a stay.
In the alternative, China Telecom Americas said that "if the Commission is not inclined to grant a stay pending the completion of judicial review," it requests that the FCC grant an interim stay of the effective date of the Order to permit China Telecom Americas to file a motion for stay with a United States Court of Appeal.