The Federal Communications Commission (FCC) has opened a formal review to determine whether China Telecom (Americas) Corporation should retain its authorization to provide telecommunications services in the United States.
The FCC said the review will “determine whether to end China Telecom (Americas) Corporation’s authority to provide domestic interstate and international telecommunications services within the United States under section 214 of the Communications Act.” This action reflects the regulator’s aim to protect U.S. telecommunications infrastructure from potential national security risks.
In April, multiple U.S. federal agencies advised the FCC to revoke China Telecom Americas’ international section 214 authorizations, citing “substantial and unacceptable national security and law enforcement risks associated with continued access to U.S. telecommunications infrastructure.” Those agencies raised concerns that the company’s ownership and governance create vulnerabilities that could be exploited to compromise critical communications networks.
Authorities expressed concerns similar to those previously voiced about other Chinese-linked vendors: that ultimate control by the Chinese state could influence corporate decisions and create security risks. China Telecom and related companies have denied those allegations.
The FCC’s filing states:
“China Telecom Americas is indirectly and ultimately owned and controlled by the government of the People’s Republic of China.
Moreover, the corporate governance documents of China Telecom Americas’ parent company give the Chinese Communist Party substantial control over its management and business operations.”
The FCC also alleges that China Telecom Americas provided inaccurate information to U.S. authorities about its record retention policies and failed to meet obligations under a 2007 mitigation agreement with federal agencies that required the company to notify regulators about certain filings and activities. Those lapses contributed to the agencies’ recommendation to remove the company’s authorization.
In April the Commission issued China Telecom Americas an Order to Show Cause, asking the company to explain why its authorization should not be revoked. According to the FCC, China Telecom Americas did not furnish a satisfactory response to address the federal agencies’ security and law enforcement concerns or to the Commission’s order.
With the proceeding now underway, the FCC will evaluate evidence and arguments before deciding whether to revoke the company’s authority to provide interstate and international services in the United States. If the Commission moves forward with revocation, China Telecom Americas would be barred from offering those services under section 214 of the Communications Act.
(Photo by Issy Bailey on Unsplash)
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