FCC Scuttles Operations Of China Telecom's U.S. Unit

The US Federal Communications Commission (FCC) on Tuesday voted to revoke the authorization for China Telecom's US subsidiary to operate in the United States, citing national security concerns, David Shepardson reported for Reuters.

Photo Insert: China Telecom, the largest Chinese telecommunications company, has had the authorization to provide telecommunications services in the US for nearly 20 years.

The decision means China Telecom Americas must now discontinue US services within 60 days. China Telecom, the largest Chinese telecommunications company, has had the authorization to provide telecommunications services in the US for nearly 20 years.

FCC found that China Telecom "is subject to exploitation, influence, and control by the Chinese government and is highly likely to be forced to comply with Chinese government requests without sufficient legal procedures subject to independent judicial oversight."

The US regulator added that Chinese government ownership and control "raise significant national security and law enforcement risks by providing opportunities" for the company and the Chinese government "to access, store, disrupt, and/or misroute US communications."

China Telecom served more than 335 million subscribers worldwide as of 2019 and claims to be the largest fixed-line and broadband operator in the world, according to a Senate report, and also provides services to Chinese government facilities in the US.

The government said in April 2020 China Telecom targets its mobile virtual network to more than 4 million Chinese Americans, 2 million Chinese tourists a year visiting the US, 300,000 Chinese students at American colleges, and more than 1,500 Chinese businesses in America.

In April, 2020, the FCC warned it might shut down US operations of three state-controlled Chinese telecommunications companies, citing national security risks, including China Telecom Americas as well as China Unicom Americas, Pacific Networks Corp, and its wholly-owned subsidiary ComNet (USA) LLC after US agencies raised national security concerns.

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