What it does The recommendation evaluates Digitalsystem’s request for facilities-based and resold international telecommunications authority under Section 214. It identifies risks associated with PRC and Hong Kong jurisdiction, Digitalsystem’s ownership and affiliates, planned or potential relationships with foreign telecommunications providers, access to U.S. records and systems, data storage, network control, and lawful-intercept capabilities. It also concludes that Digitalsystem’s conflicting, incomplete, and allegedly misleading responses undermine its reliability as a mitigation partner.

Who it affects The immediate subjects are Digitalsystem, its owners Hui Xie and Yi Zhou, its international affiliates, and the FCC, which must decide the application. The analysis also concerns U.S. telecommunications customers, communications data, law-enforcement process, and providers or partners connected to the PRC or Hong Kong.

Why it matters The Committee says exploitation could enable collection or exfiltration of communications and sensitive records, disruption of U.S. communications, misrouting of traffic through jurisdictions of concern, and exposure of lawful U.S. investigative information. The recommendation illustrates the Executive Branch’s Team Telecom review of foreign participation in Section 214 licensing and its reliance on candor and mitigation feasibility.

Key dates and numbers

• March 26, 2024: Digitalsystem filed its FCC application.
• June 14, 2024: The FCC referred the application to the Committee.
• June 30, 2025: The Committee certified the triage responses complete, beginning the 120-day initial review period.
• December 10, 2025: The Committee determined that a secondary assessment was warranted.
• February 23, 2026: The Committee notified its Advisors of the proposed denial, beginning their 21-day opposition period.
• April 1, 2026: The recommendation was signed and submitted.