FCC Signals Likely Revocation of Four Chinese Telecoms' Licenses -- Update
24 Abril 2020 - 7:47PM
Dow Jones News
By Kate O'Keeffe
WASHINGTON -- The Federal Communications Commission ordered four
Chinese state-owned telecommunications operators to explain why it
shouldn't withdraw permission for them to operate in the U.S.,
paving the way for likely license revocations.
The FCC sent orders Friday to the U.S. units of state-owned
carriers China Telecom Corp. and China Unicom, as well as to
Pacific Networks Corp. and ComNet (USA) LLC, both of which are
controlled by Chinese government investment firm Citic Group
Corp.
In a statement, the FCC said its orders "give the companies the
opportunity to demonstrate that they are not subject to the
influence and control of the Chinese government."
The move is part of a recent push by U.S. regulators to root out
Chinese links to U.S. telecommunications infrastructure.
The orders "reflect our deep concern -- one shared by the U.S.
Departments of Commerce, Defense, Homeland Security, Justice and
State and the U.S. Trade Representative -- about these companies'
vulnerability to the exploitation, influence and control of the
Chinese Communist Party, given that they are subsidiaries of
Chinese state-owned entities," FCC Chairman Ajit Pai said in the
statement.
The FCC is giving the Chinese companies 30 days to respond. It
is also instructing China Telecom to respond to allegations made
against it by other U.S. regulators who this month accused it of
presenting national security risks and who recommended its licenses
to operate in the U.S. be revoked.
A representative for China Telecom's U.S. unit said the firm
looks forward to "sharing information with the FCC that speaks to
our role as a responsible telecom company." It has denied the
allegations against it made by the officials who make up a Justice
Department-led group of regulators known as Team Telecom.
Representatives for the other Chinese companies didn't
immediately provide comment; neither did the Chinese embassy in
Washington. China Unicom's U.S. unit and ComNet and Pacific
Networks previously said their businesses have always complied with
U.S. laws and regulations.
The Wall Street Journal reported Sunday on findings by the
Senate Permanent Subcommittee on Investigations, led by Sens. Rob
Portman (R., Ohio) and Tom Carper (D., Del.), that U.S. regulators
historically exercised poor or no oversight of the four carriers
targeted by the new FCC orders. A Team Telecom official said in
response that that era was over.
The FCC last year denied a separate application by the American
arm of China Mobile Ltd., another Chinese state-owned giant, to
secure licenses to operate in the U.S.
Write to Kate O'Keeffe at kathryn.okeeffe@wsj.com
(END) Dow Jones Newswires
April 24, 2020 18:32 ET (22:32 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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