The Federal Communications Commission (FCC) has been advised by the Executive Branch to deny China Mobile entry to the United States telecommunications industry, citing "substantial and unacceptable risk to US law enforcement and foreign intelligence collection".
The Executive Branch, which includes the Departments of Justice, Homeland Security, Defense, State, and Commerce, along with the Offices of Science and Technology Policy and the US Trade Representative, made the recommendation almost seven years after China Mobile International (USA) made the application for a certificate under s214 of the Communications Act.
"After significant engagement with China Mobile, concerns about increased risks to US law enforcement and national security interests were unable to be resolved," Assistant Secretary for Communications and Information at the US Department of Commerce David J Redl said.
"Therefore, the Executive Branch of the US government, through the National Telecommunications and Information Administration pursuant to its statutory responsibility to coordinate the presentation of views of the Executive Branch to the FCC, recommends that the FCC deny China Mobile's Section 214 license request."
A heavily redacted petition [PDF][1] by the Executive Branch to the FCC pointed out that China Mobile International (USA) is wholly owned by China Mobile Hong Kong, which is 70 percent owned by China Mobile Communications Corporation, which is wholly owned by the People's Republic of China.
According to the Executive Branch, while it "strongly supports" the FCC's policy to encourage international participation and therefore competition in the US telco market, "the deepening integration of the global telecommunications market has created risks and vulnerabilities".
"In the current national security environment ... the authorisation would pose substantial, unacceptable national security and law-enforcement interests of the United States," the petition states.