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FCC bans Chinese companies from broadband services

The Federal Communications Commission (FCC) has banned Chinese carriers from offering broadband services in the United States. 

Citing national security concerns, the US telecommunications regulator has China Telecom and China Unicom’s American entities to stop providing such services.

According to the regulator, the Chinese carriers have been operating without proper authorization and posed potential risks to the country’s communication networks. The decision comes after a thorough review of the companies’ operations and their connections to the Chinese government.

The FCC had said Chinese telecoms firms were “subject to exploitation, influence and control by the Chinese government”.

In a statement, the FCC emphasized the importance of protecting the US communication infrastructure from potential threats posed by foreign entities. The commission also expressed concerns about the potential misuse of the carriers’ access to sensitive US communication networks.

FCC’s Chair Jessica Rosenworcel said the commission had evidence Chinese telecoms carriers were providing broadband services in the United States.

China Telecom (Americas) and China Unicom (Americas) have been given 60 days to provide evidence demonstrating that they have ceased providing broadband services in the United States. Failure to do so could result in additional enforcement actions, including the revocation of their operating licenses 

This move by the FCC is part of a broader effort to enhance the security of the nation’s communication networks and to address concerns about the involvement of foreign companies in the US telecommunications sector. The decision has been welcomed by some US lawmakers and security experts who have long expressed concerns about the potential risks posed by Chinese carriers operating within the country.

As the situation unfolds, it remains to be seen how this order will impact the broader relationship between the US and China, particularly in the realm of technology and communication. However, the FCC’s decision highlights the growing global concern over the security of communication networks and the role of foreign entities in shaping the digital landscape.

The US and China are increasingly decoupling their telecommunications infrastructure in a tense standoff. China has barred American chipmakers like Intel and AMD, while the US has banned Chinese telecom equipment companies and restricted chip sales of advanced AI technology. This trend of reducing reliance on each other’s technology could fragment the global tech supply chain, impacting costs, availability, and innovation of technology products worldwide.