Asian Tech Press (Mar. 17) -- The U.S. government has revoked the license for Chinese telecom firm Pacific Networks Corp. and its wholly-owned subsidiary ComNet (USA) LLC to provide telecom services in the country.
The U.S. Federal Communications Commission (FCC) announced by a 4-0 vote on Wednesday that it was ending the ability of Pacific Networks Corp. and ComNet (USA) LLC, to provide domestic interstate and international telecommunications services within the United States.
In the statement, the FCC asked the two Chinese telecom firms to discontinue any domestic or international services that they provide pursuant to their section 214 authority within sixty days following the order.
Pacific Networks Corp., wholly controlled by Chinese state-owned CITIC Group Corp, and its subsidiary ComNet primarily provides retail calling cards in the U.S.
The watchdog thinks that its "action safeguards the nation's telecommunications infrastructure from potential security threats."
The ban follows the telecom watchdog's January decision to bar China Unicom Hong Kong Ltd. Last October, the FCC revoked China Telecom's license to operate in the U.S.
And in 2019, it voted unanimously to deny the application of China Mobile USA, the U.S. subsidiary of China Mobile Ltd. to provide international long-distance calls and other services in the United States.
Citing FCC Commissioner Geoffrey Starks, Reuters reported that the agency has been working for three years to address the issue of Chinese telecommunications carriers.
"Taken as a whole, our actions have strengthened our national security," Starks said.
In response to the successive U.S. strikes against Chinese telecom operators, China's Foreign Ministryistry said in late January this year that the U.S. has abused its state power to unreasonably suppress Chinese companies without listing specific facts of violations, which is a serious breach of international economic and trade rules.