The Federal Communications Commission (FCC) has informed China Telecom that it will disclose documents the state-owned carrier submitted to the agency under claims of confidentiality.
China Telecom, a state-controlled operator authorised to provide services in the United States since 2001, has increasingly come under scrutiny in recent months as federal agencies reassess its fitness to operate on national security grounds.
The US Department of Justice and other federal bodies have urged the FCC to revoke China Telecom’s operating authorization. Their concerns include what they describe as “inaccurate public representations by China Telecom concerning its cybersecurity practices,” the company’s potential susceptibility to state exploitation for economic espionage, risks of disruption and misrouting of US communications, and the broader role of the Chinese government in malicious cyber activity that could threaten US national security.
Ge Yi, Director of Corporate Communications at China Telecom Americas, rejected those allegations and stressed the company’s cooperation with US regulators. He said the carrier has been transparent and has often provided more information than requested to show how it operates and serves customers in line with international standards.
“The company has always been extremely cooperative and transparent with regulators.
In many instances, we have gone beyond what has been requested to demonstrate how our business operates and serves our customers following the highest international standard.”
China Telecom is fighting to maintain its presence in the US market. The FCC acknowledged receipt of substantial confidential material from the carrier about its operations in the United States.
Other federal agencies, however, have indicated they need access to those materials as part of their national security review.
Shortly after China Telecom provided confidential documents to the FCC, the Department of Justice formally requested copies so they could be shared among federal agencies involved in the review. China Telecom objected to the request, citing confidentiality concerns.
In response, the FCC noted that the law does not bar the commission from disclosing submitted material to other federal government agencies, provided those agencies agree to maintain the documents’ confidentiality. The agency emphasized that interagency review is routine when national security questions are at stake.
The FCC also referenced Team Telecom, a federal interagency committee that oversees the government’s review of communications providers and related national security issues. Team Telecom’s members require access to relevant filings to evaluate potential risks and advise on appropriate regulatory action.
“The threats of attacks on our critical telecom infrastructure and illegal spying rise as our reliance on those networks rises,” said FCC Commissioner Brendan Carr when Team Telecom’s role was reaffirmed. That caution reflects the agencies’ intent to scrutinise the documents closely for any inaccuracies, omissions, or other evidence that could support action against China Telecom.
Federal reviewers are expected to examine the carrier’s submissions for the types of “inaccurate” statements and security vulnerabilities cited by the Department of Justice and others, which could strengthen a case for revoking the company’s authorisation to provide service in the United States.
China Telecom has approximately one week to file an additional appeal against the FCC’s decision to disclose the materials to other federal agencies.
The FCC’s letter to China Telecom is available in the agency’s public records (PDF).
(Photo by Kristina Flour on Unsplash)
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