HKT says US order ‘ceased’ as firm reportedly agrees to exit American market

Hong Kong Telecom (HKT) has announced that an order from the US Federal Communications Commission (FCC) requiring the company to justify its continued operation in the United States has been cancelled. According to a spokeswoman for HKT, the Order to Show Cause issued by the FCC in October has been terminated. Earlier reports from Reuters suggested that HKT had agreed to cease its operations in the US due to pressure from the FCC over national security concerns.

The spokeswoman reiterated that HKT was currently compliant with all relevant regulatory requirements and would continue to provide reliable service to its customers. The FCC had previously required HKT to explain why its right to offer domestic and international services to and from the US should not be revoked, citing its association with China Unicom (Americas), which was listed on the FCC's Covered List due to national security considerations.

HKT had been granted 30 days to respond to the FCC's order, which aimed to prevent Chinese telecommunications providers from operating in the US to protect national security. The Chinese embassy in Washington criticized the FCC's actions, stating that China opposed the misuse of national security safeguards and would protect the interests of its companies.

Other Chinese telecommunications firms targeted by the FCC included China Mobile, China Telecom, and China Unicom. In July, the FCC also added the California-based Digitalsystem Technology to a list of entities deemed risks to national security due to its ties with Hong Kong-based PCCW, China Mobile, and China Unicom, as well as ownership by a Chinese national.

The FCC is set to vote on a proposed ban on Chinese telecoms companies obtaining American phone numbers through internet-based voice services to combat illegal robocalls and other malicious activities while addressing national security risks, with the decision scheduled for November 19.