Telecom

China Telecom to Defy US Ban on Providing Services

In October, the FCC revoked the US authorization for China Telecom (Americas), saying it "is subject to exploitation, influence and control by the Chinese government." Photo: Reuters

China Telecom’s US unit said on Wednesday it plans to continue providing some services in the US in 2022 after a regulator revoked its authorisation to operate telecommunications in the country, citing national security.

The Federal Communications Commission (FCC) voted in October to revoke the authorisation, saying China Telecom (Americas) (CTA) “is subject to exploitation, influence and control by the Chinese government”.

In a letter to the FCC, the company said the services it intends to continue do not fall under the order requiring a halt to its common carrier operations. CTA argued that the services qualify as private carrier.

CTA offers consumers mobile service under the brand name CTExcel. The FCC said CTExcel customers needed to switch to a new provider by January 3.

The company said it “will continue to operate its private carrier business in the US after the January 3 deadline”.

Court Bid Denied

Earlier this month, a federal appeals court declined CTA’s emergency bid to halt the FCC order.

In a letter to FCC chairwoman Jessica Rosenworcel dated Monday and made public on Wednesday, a lawyer for China Telecom (Americas) said the FCC rejected its requests to meet and the company planned to continue some services after January 3.

As well as its US operations, CTA said it is developing a significant network expansion in Latin America.

The company has announced plans to develop backbone infrastructure that connects its existing global network in Fortaleza, Buenos Aires, Santiago, Lima, Panama City and Mexico City over the next three years.

“Latin America is an exciting market for our company,” Luis Fiallo, vice president of Latin America at CTA. “Based on the success of our Brazil operations, we are confident that other key cities across the region will result in commercial success.”

Reuters with additional editing by George Russell

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.