Hong Kong telecom company agrees to halt US operations under pressure (updated)

Pccw

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Adds more details on timing of end of services, PCCW declining immediate comment
By David Shepardson
WASHINGTON, Oct 30 (Reuters) - HKT, a leading Hong Kong telecom carrier and subsidiary of PCCW Ltd 0008.HK, on Friday agreed to halt its operations in the United States under pressure from the Federal Communications Commission.
The FCC in October 2025 said it was moving to revoke the authority of HKT to operate in the United States, citing national security concerns and its affiliation with China Unicom 0762.HK, which is a shareholder in PCCW. Under a consent decree reviewed by Reuters, HKT has agreed to stop international and domestic telecom services to and within the United States.
HKT must file an application with the FCC within 30 days to discontinue services and must discontinue US services by September 1, 2027. PCCW declined immediate comment. 
The agreement means the FCC will not move forward with the revocation proceeding that could have offered more details on Washington's national security concerns. 
The FCC has previously barred China Mobile 600941.SS, China Telecom 601728.SS and China Unicom from providing ​international telecommunications services to the United States, citing broad national security concerns.
The Trump administration has continued an extensive crackdown on Chinese telecoms over the past year. The FCC on Thursday voted to ban all Chinese labs from testing US electronics starting from December 2028.
     The telecom crackdown has sparked a strong reaction from Beijing. China said Friday it firmly opposes the FCC action on labs, warning ​it would take necessary ​countermeasures "if the US side persists in acting unilaterally."
     The FCC also announced on Thursday it plans to soon ban Chinese telecom firms from direct access to US phone numbers on national security grounds. The plan would bar Chinese IP network service providers from direct access and those that use equipment from companies on the FCC's list that pose national security risks, including Huawei and ZTE 000063.SZ.
Other measures under consideration by the FCC include barring Chinese telecom firms from connecting to US networks and from ‌operating their data centers in the US. 
Concerns about the potential for spying and other harms to arise from Chinese access to US telecom data and infrastructure have grown in recent years.
In late 2024, Washington said a Chinese state-sponsored cyber espionage group known as Salt Typhoon stole consumers' call records and US call data and infiltrated US telecommunications and telecom infrastructure firms.
China has consistently denied any wrongdoing.      

 (Reporting by David Shepardson; Editing by Chizu Nomiyama and Tom Hogue)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))