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No Order Circulating Yet

FCC May Move Soon on China Telecom Authorization

Almost a year after denying China Mobile’s application for certification under Section 214 of the Communications Act, the FCC appears poised to revoke authorization for at least China Telecom as well. Those certifications were left as unfinished business when commissioners denied 5-0 China Mobile’s application at their May meeting (see 1905090039). Executive branch agencies, led by DOJ, recommended last week the FCC revoke China Telecom U.S. authorizations for international telecom services (see 2004090060).

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"The FCC has been looking at this issue,” a spokesperson emailed Friday. “We welcome the input of the Executive Branch agencies and will review it carefully."

I take the gravity of the situation seriously & look forward to making a quick & defensible decision,” Commissioner Mike O’Rielly tweeted Thursday.

No order has circulated to the other commissioners, FCC officials said Friday. Officials said there are questions, especially after the administration’s recent “Team Telecom” executive order (see 2004060071). They expect an order from Chairman Ajit Pai on China Telecom and on China Unicom if the executive agencies make a recommendation there as well.

The FCC can cancel the authorizations but has limited ability to monitor what is coming over the cables from China Telecom and other providers, a former spectrum official said. The companies didn't comment.

The heat is growing on the FCC to act. “It’s time to reconsider our relationship with companies owned or controlled by China’s communist regime,” Commissioner Brendan Carr tweeted. Carr questioned how the Chinese government handled the COVID-19 pandemic and silenced critics (see here and here).

I agree that nat'l security concerns must be a strong consideration,” Commissioner Geoffrey Starks tweeted Friday. He noted the FCC ‘s action last year against China Mobile because of “similar concerns. I will give this latest filing close review.”

Sens. Rob Portman, R-Ohio, and Tom Carper, D-Del., jointly supported the Team Telecom finding and urged action. “China regularly uses China Telecom Americas’ authority to provide telecommunications services in the United States to further its intelligence collection and espionage efforts,” Portman said Thursday: “This is unacceptable.” China’s government “moved aggressively in recent years to launch cyber-attacks against our businesses and government agencies and get ahead militarily and economically with stolen American research and intellectual property,” Carper said: “These activities have left our nation no choice but to act.”