By David Shepardson
WASHINGTON (Reuters) – The Federal Communications Commission (FCC) has proposed a fine of $660,639 for a small Montana wireless carrier that commissioners said has been indirectly controlled by Russian oligarchs since at least 2011.
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)
