Hong Kong's HKT faces possible revocation of authorisations in the US

Telco ordered to show cause why proceedings should not be commenced.

Hong Kong-headquartered HKT, which provides services in the US through the telecom firm's wholly-owned subsidiaries, is facing the prospect of having its authorisations revoked.

In an Order to Show Cause, independent US agency Federal Communications Commission (FCC) is asking the HK telco to explain why revocation proceedings against it should not be commenced by the FCC.

Referring to the Chinese Communist Party (CCP), FCC Chairman Brendan Carr said: "[The] Order continues the FCC's work of ensuring that CCP-controlled entities that pose national security risks to our country cannot connect to our telecom networks.

"As an affiliate of China Unicom – a provider that is already listed on the FCC's Covered List due to national security concerns – the FCC's action on HKT is an appropriate step towards ensuring the safety and integrity of our communications networks."

HKT currently holds 12 international section 214 (of the Communications Act of 1934, as amended) authorisations. Its subsidiaries, including PCCW Global and Gateway Global Communications, are also ordered to show cause why their domestic authority should not be challenged through a proceeding.

"The Commission has taken repeated action in recent years to deny an application for international section 214 authority and to revoke and/or terminate the domestic and international section 214 authority of entities that are ultimately owned and controlled by the government of the People's Republic of China and subject to its exploitation, influence, and control," reads part of the Order.