Hong Kong Telecom agrees to exit US market as FCC order is dropped

Hong Kong Telecom (HKT) says a US order requiring it to justify its American operations no longer applies after the carrier agreed to wind down its business in the United States. A spokeswoman told the South China Morning Post on November 1 that the Federal Communications Commission's Order to Show Cause, issued in October, has been dropped.

National security concerns behind the order

The FCC order had cited national security concerns tied to possible foreign ownership links, demanding that HKT justify its operations in the US. It is part of a broader US crackdown on Chinese-linked telecommunications firms operating domestically, with scrutiny focused on data security and network access.

HKT is one of Hong Kong's largest carriers, but it did not disclose a timeline for winding down its remaining US operations or the scale of its American business. The case adds to a string of actions against Hong Kong and mainland Chinese telecom operators as Washington tightens scrutiny of foreign carriers over technology and critical infrastructure, intensifying friction between the two sides.