Chinese telecom operators threatened with loss of access to US market

The US has threatened to withdraw the licences of more Chinese telecom operators. The Federal Communications Commission issued orders to China Telecom Americas, China Unicom Americas, Pacific Networks and ComNet to ‘show cause’ why their authorisations to operate in the US should not be withdrawn. The regulator said all four are ultimately subject to ownership and control by the Chinese state.

This follows the FCC’s recent move to revoke China Telecom’s licence to handle traffic with the US and a similar action against China Mobile last year. FCC Chairman Ajit Pai said the Chinese operators pose a risk to national security.

The orders are based on a joint assessment by the US’ so-called Team Telecom, which includes the Departments of Commerce, Defense, Homeland Security, Justice, and State and the US Trade Representative. The companies have 30 days to respond to the orders.

―Telecompaper