FCC revokes China Telecom’s authority to operate in the US News
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FCC revokes China Telecom’s authority to operate in the US

The Federal Communications Commission (FCC) has adopted an order ending China Telecom (Americas) Corporation’s ability to operate in the United States. The FCC directed China Telecom to discontinue any domestic or international services that it provides within sixty days of the Tuesday order pursuant to Section 214 of the Communications Act of 1934.

In December 2020, the FCC launched a proceeding and established a process that allowed for China Telecom, the Executive Branch agencies and the public to present arguments pertaining to national security concerns over China Telecom’s presence in the US. Based on a recommendation of the Executive Branch agencies and an extensive number of unclassified records, the FCC concluded that China Telecom failed to rebut the serious concerns of the Executive Branch about its continued presence in the US.

The 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 FCC also found that China Telecom’s conduct towards the FCC and other agencies demonstrates a lack of trustworthiness and reliability that “erodes the baseline level of trust” that the FCC requires for telecommunication carriers’ operations in the US.

In order to assist US customers that now have to transition to other mobile services due to China Telecom’s discontinued services in the US, the FCC plans to issue a consumer guide to explain alternative options the US customers have.

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