FCC Begins Process of Halting China Telecom US Operations Over National Security Concerns

FCC Chairman Ajit Pai noted several US government agencies had recommended the revocation citing national security concerns.

Advertisement
By Reuters | Updated: 11 December 2020 11:16 IST
Highlights
  • The FCC said in June it designated Huawei and ZTE as threats
  • Huawei said in a statement it is disappointed with the FCC’s decision
  • This overreach puts US citizens at risk in largely underserved rural area

The FCC rejected a petition from Huawei asking the agency to reconsider its decision

The US Federal Communications Commission (FCC) said on Thursday it begun the process of revoking China Telecom's authorisation to operate in the United States as it took further steps to crack down on China's role in US telecommunications.

FCC Chairman Ajit Pai noted several US government agencies had recommended the revocation citing national security concerns.

Pai said there are "significant concerns" that China Telecom will be forced to comply with Chinese government's requests for information, including communications intercepts. China Telecom, the largest Chinese telecommunications company, has had authorisation to provide telecommunications services for nearly 20 years.

Advertisement

China Telecom Americas did not have an immediate comment.

The FCC in April had warned it might shut down the 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.

The US Justice Department and other federal agencies in April called on the FCC to revoke China Telecom's ability to operate in the United States.

Advertisement

In May 2019, the FCC voted unanimously to deny another state-owned Chinese telecommunications company, China Mobile, the right to provide services in the United States, citing risks that the Chinese government could use the approval to conduct espionage against the US government.

The FCC also on Thursday rejected a petition from Huawei asking the agency to reconsider its decision designating the Chinese company as a US national security threat to communications networks.

Advertisement

The FCC said in June it had formally designated China's Huawei and ZTE as threats, a declaration that bars US firms from tapping an $8.3 billion (roughly Rs. 61,100 crores) government fund to purchase equipment from the companies. The FCC affirmed its ZTE designation last month.

The FCC on Thursday also finalised rules that require carriers with ZTE or Huawei equipment to "rip and replace" that equipment and created a reimbursement programme to subsidise smaller carriers to remove and replace those services and equipment.

Advertisement

Pai noted the commission "can't actually implement the reimbursement programme unless and until Congress appropriates the necessary funding."

Huawei said in a statement it "is disappointed with the FCC's decision to force removal of our products from telecommunications networks. This overreach puts US citizens at risk in the largely underserved rural areas – during a pandemic - when reliable communication is essential."

© Thomson Reuters 2020


Are Micromax In 1b, In Note 1 good enough to take the brand to the top in India?? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Affiliate links may be automatically generated - see our ethics statement for details.
 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: FCC, Ajit Pai, Huawei, ZTE
Advertisement

Related Stories

Popular Mobile Brands
  1. ESA's ExoMars Orbiter Captures Closest Images of Interstellar Comet 3I/ATLAS
  2. Interstellar Comet 3I/ATLAS May Originate from Milky Way's Hidden Frontier
  1. Interstellar Comet 3I/ATLAS May Originate from Milky Way’s Hidden Frontier, New Study Suggests
  2. ESA’s ExoMars Orbiter Captures Closest Images of Interstellar Comet 3I/ATLAS
  3. Researchers Build Record 6,000-Qubit Quantum Machine That Works at Room Temperature
  4. Engineers Develop Predictive Battery Tool to End Range Anxiety for Electric Vehicle Drivers
  5. Nobel Prize in Physics 2025 Awarded for Breakthroughs in Quantum Tunnelling and Energy Quantisation
  6. Blue Origin Prepares New Glenn Rocket for NASA’s ESCAPADE Mars Mission
  7. World’s First Chip Combining 2D Materials With Silicon Circuits Marks Breakthrough in Computing
  8. Coolie Hindi Dub Now Available for Streaming on Amazon Prime Video: What You Need to Know About Rajnikanth's Action Thriller
  9. A Knight of the Seven Kingdoms OTT Release: Know When, Where to Watch the Game of Thrones Prequel
  10. D/o Prasad Rao: Kanabadutaledu OTT Release Date: When and Where to Watch it Online?
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.