FCC May Move to Bar HKT From U.S. Network Interconnection Over National Security Concerns

• FCC issued an Order to Show Cause to HKT, alleging foreign-adversary control and national security risk.

• HKT and PCCW earned nearly 13% of 2024 revenue from outside China; HKT accounts for about 90% of that international revenue.

• China Unicom holds an 18.4% stake in PCCW; China Unicom lost U.S. access in 2022. FCC plans an October 28 vote on tighter telecom restrictions.

FCC bars HKT from U.S. networks: Order to Show Cause cites Chinese ties and security risks; read COINOTAG analysis of implications and next steps.

What is the FCC move to bar HKT from U.S. networks?

FCC bars HKT from U.S. networks by issuing an Order to Show Cause that requires HKT to justify why its authorizations should not be revoked. The Commission says the action addresses national security concerns tied to indirect Chinese government ownership and the risk such control poses to U.S. communications infrastructure.

How does the FCC justify the Order to Show Cause and what evidence does it cite?

The Federal Communications Commission points to ownership structures and intermediary entities in the British Virgin Islands, Hong Kong, and the Cayman Islands that indicate indirect control by the PRC government over HKT subsidiaries, including PCCW Global and Gateway Global Communications. Chairman Brendan Carr stated the measure is “appropriate to ensure the integrity and safety of the country’s communications networks.” Commissioner Olivia Trusty warned that global adversaries can expose undersea cables and AI-related networks to “sabotage, espionage, and surveillance.” The FCC also notes precedents: China Unicom lost U.S. network access in 2022 after similar national security determinations.

Frequently Asked Questions

Will the FCC revoking HKT’s authorizations cut off HKT’s interconnection with U.S. carriers?

If the FCC revokes authorizations, HKT would lose the legal ability to exchange data and calls directly with U.S. carriers, which would remove a revenue-generating interconnection privilege. The Order to Show Cause starts a regulatory process that could lead to revocation after administrative review and any responses HKT submits.

Why did the FCC list Hong Kong and China as foreign adversaries affecting telecoms?

The FCC references determinations by the Secretary of Commerce and federal policy steps that identify China, Hong Kong, and Macau among foreign adversaries. The Commission says entities controlled by or subject to direction from those adversaries present heightened risks to national communications infrastructure and must face stricter certification, disclosure, and reporting requirements.

Key Takeaways

• Regulatory action initiated: The FCC issued an Order to Show Cause demanding HKT justify continued U.S. authorizations.
• National security grounds: Concerns center on indirect PRC government influence and risks to undersea cables and AI networks.
• Immediate implications: Potential loss of interconnection privileges, revenue exposure for PCCW/HKT, and an October 28 FCC vote on tighter Chinese equipment restrictions.

Conclusion

The FCC’s action, led by Chairman Brendan Carr and aligned with determinations from the Secretary of Commerce and the Secure Network Act framework, places HKT under formal review and could bar it from U.S. networks. COINOTAG will continue to monitor the administrative process, upcoming FCC votes, and the broader impact on telecom interconnection and supply-chain security.

Sources: Federal Communications Commission; Secure Network Act; statements by Brendan Carr and Commissioner Olivia Trusty; public filings referencing China Unicom and PCCW financial disclosures. Publication: COINOTAG — 2025-10-16.