FCC denies US firm with Chinese links approval to provide telecoms services

The U.S. Federal Communications Commission (FCC) has denied California-based Digitalsystem Technology permission to offer international telecommunications services. The agency cited significant national security concerns stemming from the company's ties to Chinese telecommunications firms and its ownership by a Chinese national.

In its decision, the FCC placed Digitalsystem Technology on a list of companies deemed to pose risks to U.S. national security. The commission expressed worries that the company's infrastructure could be exploited by Chinese threat actors. Such exploitation, the FCC stated, could lead to the collection, disruption, or misrouting of U.S. communications, potentially harming national security and law enforcement interests.

The FCC specifically highlighted Digitalsystem Technology's partnerships with Hong Kong-based PCCW, as well as Chinese state-owned giants China Unicom and China Mobile. These affiliations, combined with the company's ownership structure, were central to the FCC's determination. This action follows previous FCC decisions that barred China Mobile, China Telecom, and China Unicom from providing international telecommunications services to the United States due to similar national security concerns.

Neither Digitalsystem Technology nor the Chinese embassy in Washington immediately responded to requests for comment regarding the FCC's decision.

“

There is significant risk that the government of China and other threat actors could exploit any vulnerabilities to the detriment of US national security and law enforcement interests.