The Federal Communications Commission has issued an order directing Hong Kong Telecom (HKT) to provide a written explanation as to why revocation proceedings should not be initiated against its authority to operate in the United States.
According to the FCC’s announcement last week, the order signals the first step in potential actions to revoke HKT’s ability to serve customers in the U.S. as part of a wider effort to unwind perceived security risks linked to foreign ownership in critical communications networks.
Chairman Brendan Carr stated that the action against HKT aligns with ongoing bipartisan efforts to limit Chinese influence in U.S. telecom infrastructure. “As an affiliate of China Unicom—a provider that is already listed on the FCC’s Covered List due to national security concerns—the FCC’s action on HKT today is an appropriate step toward ensuring the safety and integrity of our communications networks,” Carr said. “The FCC will continue to safeguard America’s networks against penetration from foreign adversaries, like China.”
CNBC reported that HKT acknowledged receipt of the order and pledged to respond to relevant authorities in due course, illustrating the formal process now underway.
The FCC’s release also notes bipartisan support for scrutinizing Chinese telecoms and explains that HKT’s wholly owned subsidiaries have been directed to provide similar explanations regarding why their authority to operate in the U.S. should not be revoked. The agency has previously denied or revoked the U.S. operations of several other Chinese entities, including China Mobile International (USA) Inc. (2019) and China Telecom (Americas) Corp. (2021), with other actions involving Pacific Networks Corp. and ComNet (USA) LLC in 2022.
The commission emphasized that revocation proceedings remain a possibility while it evaluates HKT’s explanations and any related national security considerations. The process is part of a long-running effort to ensure the safety, reliability, and integrity of U.S. communications networks.