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The
FCC voted 4-0 to fine London-based Truphone Ltd, the owner of
Montana-based iSmart Mobile, for exceeding statutory limits for
ownership by foreign individuals or entities tied to FCC-issued
licenses without FCC approval. The FCC is also requiring
Truphone to promptly file corrective transfer of control
applications.
FCC Chairwoman Jessica Rosenworcel said the commission in the
wake of Russia's invasion of Ukraine "launched an internal
assessment of Russian ownership of telecommunications interests
in the United States" and said the action against Truphone was a
result of that review.
Truphone has 30 days to pay the fine or file a written notice
seeking cancellation or reduction of the amount.
The FCC said that during its investigation Truphone disclosed
last month that a company controlled by Russian billionaire
Roman Abramovich and his children held a stake in the company.
Truphone and a U.S. lawyer for the company did not immediately
respond to a request for comment Thursday, but in a statement on
its website Truphone said its board was aware of news stories
linking Abramovich to the company. The company confirmed
Abramovich has been a minority investor in the business since
2013 through Minden Worldwide.
The company said in a April 1 statement that "in light of recent
global events, the board of directors has appointed FRP Advisory
to support the company in an immediate review of its strategic
options."
The FCC order said "it appears that Truphone’s failure to report
truthful and accurate ownership information was egregious. As a
result of Truphone’s failure, control of a U.S. common carrier
passed to an unvetted foreign entity and associated individuals
for more than seven years."
A spokesperson for Abramovich did not immediately respond to a
request for comment.
FCC Commissioner Geoffrey Starks said the company has been
indirectly owned by "a small group of Russian oligarchs since at
least 2011. ... With the importance of the internet and the
shifting national security environment facing our nation,
protecting our communications networks has never been more
critical."
(Reporting by David Shepardson; Editing by Chris Reese and
Leslie Adler)
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