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FCC revokes China Telecom's operating license in the US

October 27, 2021 3:44 am

The US Federal Communications Commission (FCC) on Tuesday voted to order China Telecom Americas to stop providing telecommunication service in the United States, citing national security concerns.

Details:

In a statement, the FCC explained China Telecom Americas will lose the ability to provide domestic and international telecoms services within 60 days.

The FCC explained it will issue guidance for customers of China Telecom Americas to switch to other operators.

“The FCC’s decision is disappointing. We plan to pursue all available options while continuing to serve our customers,” a China Telecoms America spokesperson told Reuters.

China Telecom Americas is a subsidiary of China Telecom Corporation, a state-owned Chinese telecommunications company. Under the brand name 'CTExcel', the subsidiary operates a mobile virtual network operator service and resells mobile services directly to retail customers.

Currently, it provides services in over 100 countries, to more than 135 million broadband subscribers and over 255 million mobile subscribers. 

Context:

Last April, the US Justice Department, and other federal agencies called on the FCC to revoke China Telecom Americas Corp’s authorization to provide international telecommunications services within the US over cybersecurity risks.

Then, the Trump administration ordered China Telecom, China Mobile, and China Unicom, to delist from the New York Stock Exchange (NYSE). Prior then this, the stocks of China’s three major telecom operators have been traded on the NYSE for 20 years.