FCC blocks China Mobile’s application to provide telecom services in US

Federal Communications Commission (FCC) Chairman Ajit Pai has revealed his opposition to China Mobile’s application to provide telecommunications services in the United States due to security concerns.
China Mobile VoLTE
The Commission is scheduled to vote on an Order that would deny that application at its May Open Meeting.

“Safeguarding our communications networks is critical to our national security. After reviewing the evidence in this proceeding, including the input provided by other federal agencies, it is clear that China Mobile’s application to provide telecommunications services in our country raises substantial and serious national security and law enforcement risks,” Ajit Pai said.

Earlier, America blocked Huawei and ZTE, two leading telecom network makers from China, due to security concerns. US-based telecom carriers including AT&T, Verizon, T-Mobile and Sprint are not sourcing telecom networks from Huawei and ZTE.

FCC said China Mobile USA is a Delaware corporation that is indirectly and ultimately owned and controlled by the Chinese government. China Mobile USA is an indirect but wholly-owned subsidiary of China Mobile, one of the largest telecommunications companies in the world.

China Mobile on Sept. 1, 2011 filed an application requesting authority under Section 214 of the Act and Section 63.18 of the Commission’s rules to provide international facilities-based and resale telecommunications services between the U.S. and foreign destinations.

On July 2, 2018, after a lengthy review of the application and consultation with the U.S. intelligence community, the Executive Branch agencies recommended that the Commission deny China Mobile’s application due to substantial national security and law enforcement risks that cannot be resolved through a voluntary mitigation agreement.

The draft Order circulated by FCC Chairman Ajit Pai to his colleagues today would find that China Mobile is vulnerable to exploitation, influence, and control by the China government, FCC said today.