HKT agrees to halt U.S. telecom services amid FCC security pressure

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HKT halts U.S. telecom services

Highlights

HKT, a PCCW subsidiary, agreed under a consent decree to discontinue U.S. telecom services with full shutdown required by September 1, 2027.
The FCC drops revocation proceedings against HKT but continues tightening restrictions on Chinese telecom firms, including new bans on Chinese electronics lab testing from December 2028.
Washington intensifies scrutiny after a 2024 cyber espionage incident linked to Salt Typhoon, while Beijing warns of countermeasures against expanding U.S. FCC curbs.

Consent decree sets shutdown timeline

As reported by CNBC, citing Reuters, HKT, a subsidiary of PCCW, agreed on Friday under a consent decree with the Federal Communications Commission to stop providing international and domestic telecom services to and within the U.S.

Under the agreement, HKT must file an application with the FCC within 30 days to discontinue its services and must end its U.S. operations by September 1, 2027. The FCC said in October 2025 that it was moving to revoke HKT's authority to operate in the U.S., citing national security concerns and the company's affiliation with China Unicom, a shareholder in PCCW.

PCCW declined immediate comment. The agreement also means the FCC does not move forward with the revocation proceeding, a step that could have revealed more details about the government's security concerns.

Broader U.S. telecom curbs on Chinese groups

The HKT decision fits into a wider U.S. crackdown on Chinese-linked telecom activity. The FCC has previously barred China Mobile, China Telecom, and China Unicom from providing international telecommunications services to the U.S. on national security grounds.

The commission on Thursday also votes to ban all Chinese labs from testing U.S. electronics starting in December 2028, and it says it plans to soon block Chinese telecom firms from direct access to U.S. phone numbers. That proposal would also cover Chinese IP network service providers with direct access, as well as providers using equipment from companies on the FCC's national security list, including Huawei and ZTE.

Other measures under consideration include barring Chinese telecom firms from connecting to U.S. networks and from operating data centers in the U.S. Washington's concerns have intensified in recent years, including after the U.S. said in late 2024 that a Chinese state-sponsored cyber espionage group known as Salt Typhoon stole consumers' call records and U.S. call data and infiltrated telecommunications and telecom infrastructure firms; China has consistently denied wrongdoing.

Beijing is already reacting sharply to the latest FCC actions. China says on Friday that it firmly opposes the FCC move on labs and warns it will take necessary countermeasures if the U.S. persists in acting unilaterally.

China’s stance on rare earth exports to Europe highlighted how Beijing is using critical-material supply approvals as a lever amid ongoing trade negotiations and a time-limited U.S.-China truce. Our earlier coverage noted that China signaled it would keep licensing rare earth shipments for European buyers even as uncertainty lingered over whether the broader trade arrangement with Washington would be extended beyond January.

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