FCC blocks Digitalsystem Technology telecom approval over U.S. security concerns

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FCC blocks Digitalsystem over security

Highlights

FCC blocks Los Angeles-based Digitalsystem Technology from U.S. telecom services, citing risks linked to Chinese ownership and partnerships with firms like PCCW, China Unicom and China Mobile.
The action is part of a broader crackdown including bans on China Mobile, China Telecom, and China Unicom from providing international telecom services and proposed restrictions on interconnection for U.S. carriers.
Recent FCC measures include banning imports of gear from Huawei, Dahua, ZTE, Hikvision, and new Chinese drones and routers, intensifying restrictions on Chinese electronics in the U.S. market.

FCC action and cited security risks

As reported by Reuters, the Federal Communications Commission says Digitalsystem Technology could be exploited by Chinese threat actors and poses a significant risk to U.S. national security and law enforcement interests.

The agency says the Los Angeles-based IT company has links to Chinese telecom firms and is owned by a Chinese national. It cites concerns that vulnerabilities could lead to the collection, disruption or misrouting of U.S. communications.

The FCC also points to the company's partnerships with Hong Kong-based PCCW, China Unicom and China Mobile. It says Digitalsystem's website had listed Huawei, Dahua, Hikvision and ZTE among its partners before later changing that description to clients.

The company and the Chinese Embassy in Washington do not immediately respond to requests for comment.

Broader U.S. telecom crackdown

The decision fits into a wider U.S. campaign against Chinese telecom and electronics groups operating in or supplying the American market. The FCC previously bars China Mobile, China Telecom and China Unicom from providing international telecommunications services to the United States on national security grounds.

On October 15, the FCC says it is moving to revoke the ability of HKT, a Hong Kong telecom carrier and PCCW subsidiary, to operate in the United States. The regulator also proposes banning U.S. telecommunications carriers from interconnecting with Chinese telecom firms that it deems security risks, a step Chinese companies say could severely disrupt global communications networks.

Last month, the FCC says it will ban imports of more equipment from Chinese manufacturers including Huawei, Dahua, ZTE and Hikvision, while also blocking new models of Chinese drones and routers from import. The measures underscore the Trump administration's tougher line on Chinese telecom and electronic gear.

Our earlier article on the FCC’s investigation into Disney and ABC’s The View covered Disney’s legal challenge to the regulator’s authority to revisit the show’s long-standing news exemption under equal-time rules. We noted the dispute raised wider First Amendment and editorial-independence questions, while also illustrating rising friction between major broadcasters and the Trump administration over federal oversight of content decisions.

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