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FCC revokes China Telecom's ability to offer services in the US

The company has 60 days to comply with the order.
A road surveillance camera is seen in front of a China Telecom service center in Beijing November 16, 2011. Chinese authorities have fired a loud salvo with their anti-monopoly probe into China's telecoms giants for violations leading to sluggish, expensive broadband service, signalling tougher regulation ahead for firms abusing their market power. The National Development and Reform Commission's (NDRC) investigation into China Unicom and China Telecom , unveiled on the country's popular noon television news show, was a bold step in a country where senior Communist Party officials run the biggest state-owned enterprises (SOEs). To match Analysis CHINA/REGULATION  REUTERS/Soo Hoo Zheyang (CHINA - Tags: BUSINESS POLITICS)
Zheyang SooHoo / reuters
Igor Bonifacic
Igor Bonifacic|@igorbonifacic|October 26, 2021 2:40 PM

The Federal Communications Commission has revoked the ability of China Telecom Americas to operate in the US. Citing national security concerns, the agency voted unanimously in favor of a proposal it had been considering since the end of 2020. With today’s order, the company, a subsidiary of China’s largest state-owned carrier, has 60 days to discontinue telecom services in the US.

Following a proceeding that involved input from the Justice Department, the FCC found that China Telecom is likely to comply with requests from the Chinese government, affording the country the opportunity to access, store, disrupt and misroute US communications. “Promoting national security is an integral part of the Commission’s responsibility to advance the public interest, and today’s action carries out that mission to safeguard the nation’s telecommunications infrastructure from potential security threats,” the FCC said.

Over the last year, the FCC has taken similar actions against other Chinese telecoms and equipment manufacturers. Most notably, it labeled both Huawei and ZTE as national security threats and ordered US carriers to replace any networking equipment from the two companies.

We've reached out to China Telecom Americas for comment.

FCC revokes China Telecom's ability to offer services in the US