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

FCC moves to deny China Mobile's bid to enter the US market

The chairman of the top USA telecoms regulator on Wednesday announced his opposition to allowing China Mobile to operate in the United States, citing risks to American national security.

CNBC During a White House press conference today, President Donald Trump - with FCC chairman Ajit Pai at his side - laid out the aggressive plans his administration has for the rollout of 5G ...

In the statement, the FCC said that China Mobile is "indirectly and ultimately owned and controlled" by China's government.

Federal Communications Commission chairman Ajit Pai said on Wednesday he opposes China Mobile Ltd's bid to provide USA telecommunications services, citing security risks, and said the commission will vote on whether to deny the company's application in May.

Pai's proposal will now circulate to his fellow commissioners and be voted on at the FCC's May 9 public meeting.

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Safeguarding our communications networks is critical to our national security.

Washington's push to erect new barriers to the entry of Chinese companies into the U.S. market continued on Wednesday, as the country's top telecommunications regulator announced a move to block China Mobile.

Against that backdrop, the rejection of China Mobile's bid to enter the United States market is not surprising and reflects a consensus in Washington among policymakers that Chinese firms could be pressured by Beijing to hand over customer data.

The comments come amid a broader US campaign to limit the role of Chinese telecommunications firms in the build-out of 5G networks as Western governments grapple with the national security implications of moving to 5G, which promises to be at least 100 times faster than the current 4G networks. The draft Order would also find that China Mobile is vulnerable to exploitation, influence, and control by the Chinese government. China Mobile offered potential solutions to mitigate the presumed risk, but the NTIA found these were not sufficient.

China Mobile refuted those claims, but in the end, Chairman Pai agreed with the Commerce Department's assessment. US-based telecom carriers including AT&T, Verizon, T-Mobile and Sprint are not sourcing telecom networks from Huawei and ZTE.

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