The Federal Communications Commission (FCC) has moved to revoke the US license of Hong Kong Telecom International (HKT) to provide international and domestic telecom services to and within the United States.
The FCC said it revoked the company's license due to HKT's close links to China. HKT is an affiliate of Chinese telco China Unicom, which is already on the FCC’s Covered List due to national security concerns.
It's the first time the FCC has gone after a Hong Kong operator, having been heavy-handed in the past against several Chinese telcos amid national security concerns.
In a statement this week, the FCC revealed that it has sent out an order to HKT to prove to the agency why the FCC shouldn't revoke its license.
"Specifically, the commission’s Office of International Affairs (OIA), Wireline Competition Bureau (WCB), and Enforcement Bureau (EB), sent an order to show cause to HKT and its wholly-owned subsidiaries directing them to explain why the FCC should not commence revocation proceedings against them," said the FCC this week.
“Today’s Order continues the FCC’s work of ensuring that CCP-controlled entities that pose national security risks to our country cannot connect to our telecom networks,” said FCC chairman Brendan Carr.
“As an affiliate of China Unicom—a provider that is already listed on the FCC’s Covered List due to national security concerns—the FCC’s action on HKT today is an appropriate step towards ensuring the safety and integrity of our communications networks. The FCC will continue to safeguard America’s networks against penetration from foreign adversaries, like China.”
Several Chinese telecoms companies in the past few years, under different US administrations, have been banned from providing services to the US, while vendors such as Huawei and ZTE have also faced sanctions.
China Unicom (Americas) Operations Ltd. (China Unicom) was banned from operating in the US in 2022. The company is 100 percent owned by China Unicom Group. Significantly, China Unicom is the second biggest shareholder of HKT parent PCCW, with an 18 percent stake.
HKT has been a subsidiary of PCCW since 2000 and is one of the largest telecoms companies in Hong Kong.
Other Chinese telcos to lose their operating licenses in the US include China Mobile International (USA) Inc. in 2019, China Telecom (Americas) Corp. in 2021, Pacific Networks Corp., and ComNet (USA) LLC., both in 2022.
Carr recently took aim at China during the SCTE TechExpo a couple of weeks back, notably slamming China's AI efforts. His comments came shortly after the FCC denied applications from four “bad labs” the agency linked to the Chinese government.
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