A three-judge panel of the U.S. Court of Appeals for the District of Columbia denied the U.S. arm of China Telecom’s request to overturn the Federal Communications Commission’s (FCC) withdrawal of the company’s authority to provide services in the United States, which will take effect next January, according to a December 20th report. China Telecom argued that the FCC violated its own rules by refusing to hold a hearing before withdrawing domestic and international public operating authority held by China Telecom (Americas). The jury, however, did not accept this argument.
According to FCC filings, China Telecom has been authorized to provide telecommunications services in the United States for 20 years and by 2019, the company had more than 335 million subscribers worldwide, while also serving Chinese government facilities in the United States.
In 2021, the FCC made a decision to revoke China Telecom’s (Americas) license to operate in the United States because of its use, influence, and control by the Chinese government. FCC Chairwoman, Jessica Rosenworcel said the company had successfully acquired the right to operate in the United States over the past several decades. However, there is growing evidence that it poses a real threat to the security of U.S. telecommunications networks and has raised widespread concerns.
Last month, the FCC banned approvals of new telecommunications equipment from China’s Huawei Technologies and ZTE because they pose “an unacceptable risk” to U.S. national security. This is the latest crackdown on Communist China by U.S. regulators.