PHOTO: REUTERS
Hong Kong telecom company agrees to halt US operations under pressure
· The Straits Times- HKT, a Hong Kong telecom and PCCW subsidiary, agreed to stop US services after the FCC moved to revoke its licence over national security concerns and China Unicom links.
- Under the consent decree, HKT must file to end services within 30 days and stop US operations by Sept 1, 2027. The FCC will not pursue the revocation case.
- The move is part of a wider US crackdown on Chinese telecom firms. China opposed the action and warned of countermeasures, while denying any wrongdoing.
WASHINGTON – HKT, a leading Hong Kong telecom carrier and subsidiary of PCCW, agreed on Oct 30 to halt its operations in the United States under pressure from the US Federal Communications Commission (FCC).
The FCC in October 2025 said it was moving to revoke the authority of HKT to operate in the US, citing national security concerns and its affiliation with China Unicom, which is a shareholder in PCCW.
Under a consent decree reviewed by Reuters, HKT has agreed to stop international and domestic telecom services to and within the US.
HKT must file an application with the FCC within 30 days to discontinue services and must discontinue US services by Sept 1, 2027. PCCW declined immediate comment.
The agreement means the FCC will not move forward with the revocation proceeding that could have offered more details on Washington’s national security concerns.
The FCC has previously barred China Mobile, China Telecom and China Unicom from providing international telecommunications services to the US, citing broad national security concerns.
The Trump administration has continued an extensive crackdown on Chinese telecoms over the past year.
The FCC on Oct 29 voted to ban all Chinese labs from testing US electronics starting from December 2028.
The telecom crackdown has sparked a strong reaction from Beijing.
China said on Oct 30 it firmly opposes the FCC action on labs, warning it would take necessary countermeasures “if the US side persists in acting unilaterally”.
The FCC also announced on Oct 29 it plans to soon ban Chinese telecom firms from direct access to US phone numbers on national security grounds.
The plan would bar Chinese IP network service providers from direct access and those that use equipment from companies on the FCC’s list that pose national security risks, including Huawei and ZTE.
Other measures under consideration by the FCC include barring Chinese telecom firms from connecting to US networks and from operating their data centres in the US.
Concerns about the potential for spying and other harms to arise from Chinese access to US telecom data and infrastructure have grown in recent years.
In late 2024, Washington said a Chinese state-sponsored cyber espionage group known as Salt Typhoon stole consumers’ call records and US call data and infiltrated US telecommunications and telecom infrastructure firms.
China has consistently denied any wrongdoing. REUTERS