The FCC moves to block Hong Kong Telecom from US telecom networks over national security concerns. The agency has sent a "Show-Cause" notice, directing the company to explain why the FCC should not begin the proceedings against it.
The FCC is moving to expel Hong Kong Telecom (HKT) from accessing US telecom networks due to national security concerns. To that extent, the regulator had initiated proceedings to bar the carrier and has sent a show-cause order. This requires the company to explain why the FCC should not begin expelling proceedings against it.
If finalized, it would prevent the telecom from offering international and domestic telecom services to and within the U.S. HKT is one of the largest telecommunications companies in Hong Kong. It is a subsidiary of information and communications tech giant PCCW. China Unicom, a state-owned telecommunications company, owns approximately 18% of PCCW.
"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 in a statement.
Furthermore, Brendan noted that as an affiliate of China Unicom, which lost network access in 2022 due to national security concerns, the FCC's action on HKT is a right step in safeguarding the US communications networks. "The FCC will continue to safeguard America's networks against penetration from foreign adversaries, like China," said the chairman.
The latest order also details the agency's view, including a focus on applying new certification and disclosure requirements to entities "owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary."
HKT is not the only target in the agency's effort to eliminate any potential vulnerabilities. Later this month, the FCC will vote to further strengthen guardrails under its equipment authorization program to protect US networks and the communications supply chain against national security threats.
There has been a ramped-up regulatory activity in the past month from both the United States and China. This mainly targets companies that operate in or generate revenues from one another's markets.