On Tuesday (26th), the US Federal Communications Commission (FCC) revoked and terminated the operating permit of a subsidiary of China Telecom in the United States on the grounds of National Security.

The FCC warned in April 2020 that it might end China Telecom Americas, China Unicom Americas, Pacific Networks Corp and their wholly-owned companies on the grounds of national security risks. Subsidiary ComNet (USA) operates business in the United States.

The U.S. Federal Communications Commission (FCC) on Tuesday overwhelmingly approved the “revocation of China Telecom Americas’ license to operate in the United States held by China Telecom Americas since 2002” with 4 votes in favor and 0 votes against.

The FCC pointed out that China Telecom Americas will increase U.S. national security and law enforcement risks, requiring the company to stop providing services within 60 days after the relevant order is issued, putting the company’s nearly two decades of operations in the United States to a halt.

FCC Acting Chairman Jessica Rosenworcel said: “The record clearly shows that this is a subsidiary of a Chinese state-owned enterprise, so the Chinese government has the ability to influence and control its behavior, which may lead to the emergence of U.S. telecommunications networks. The real problems include monitoring and misrouting traffic.”

Rosen Worsell also revealed that the FCC is taking swift action to complete the security review of China Unicom Americas and ComNet.

China Telecom spokesperson Ge Yu responded: “We are deeply disappointed by the FCC’s decision. We plan to seek all options while continuing to serve our customers.”