(Bloomberg) — China Telecom (Americas) Corp. said it intends to continue most of its U.S. operations despite an order from regulators to stop due to espionage concerns.
China Telecom said in a filing that its business-focused telecommunications operations in the U.S. aren’t considered common-carrier services, so the Federal Communications Commission lacks authority to order their cessation.
“CTA intends to continue offering them on a private-carrier basis after January 3, 2022, to honor its contractual obligations and avoid undue disruption to its customers’ operations,” China Telecom said in a Dec. 20 letter to FCC Chairwoman Jessica Rosenworcel.
The FCC cited espionage concerns as it voted unanimously in October to revoke permission to operate in the U.S. for China Telecom, one of three leading communications providers in China. The order is to take effect 60 days after its Nov. 2 release. The FCC didn’t immediately reply to a request for comment Wednesday.
The action against China Telecom relates to worries over potentially illicit data flows from the U.S. to China. Another target of U.S. government sanctions is China-based gear maker Huawei Technologies Co.
FCC Agenda
The FCC is considering acting against surveillance-camera makers Hangzhou Hikvision Digital Technology Co. and Dahua Technology Co., and Congress is contemplating restrictions on drone maker SZ DJI Technology Co.
China Telecom earlier said it would discontinue its mobile operations offered under the brand name CTExcel, which are offered widely and are used by Chinese students and expatriates.
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