The FCC has voted to revoke the licence of China Telecom to operate in the US, due to national security concerns. As a result, China Telecom (Americas) must halt all domestic and international services in the US within 60 days of the FCC order being published.
The FCC started the process of examining China Telecom's authorisation last year, after earlier taking similar steps against China Mobile, China Unicom and other Chinese operators. The investigation was based on recommendations and classified evidence from Executive Branch agencies, which found the Chinese operators may be working too closely with the Chinese government or military.
China Telecom was given a chance to respond to the claims and a public consultation was held, but the FCC said the operator "failed to rebut the serious concerns of the Executive Branch about its continued presence in the US". Furthermore, the regulator found China Telecom Americas showed "a lack of candor, trustworthiness, and reliability" in its dealings with the Commission and other US government agencies.
China Telecom's right to operate in the US was first granted almost 20 years ago. The FCC noted that the "changed national security environment with respect to China" since then brought into question China Telecom Americas’ ownership and control by the Chinese government.
The regulator found "significant national security and law enforcement risks" if the telecom operator, its parent entities or the Chinese government were to access or disrupt US communications and engage in espionage and other harmful activities against the US. Mitigation would not be able to address the concerns, the FCC said.
