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International
May 3, 2022
Truphone is accused by the Federal Communications Commission of allegedly exceeding statutory limits without Commission approval
The Federal Communications Commission (FCC) has proposed a fine of $660,639 against global eSIM provider Truphone for allegedly exceeding statutory limits for ownership by foreign entities of interests in FCC-issued licences without Commission approval.
“Over several years, the ownership of Truphone and control of its FCC licences were transferred repeatedly to foreign individuals and entities without accurate disclosure to and review by the Commission as required by law,” said the FCC.
“Commission approval must be obtained before foreign ownership of a US-organised entity that controls a common carrier radio station licence exceeds 25 per cent of the US entity’s equity or voting interests.
The FCC claims that Truphone failed to accurately report its ownership structure and obtain prior approval before vesting control of the company in its current owners, or obtain Commission approval before an unvetted foreign entity acquired more than five percent of Truphone. Truphone will have a chance to respond to resolve the matter.