US wants to restrict China Telecom’s business over national cybersecurity threat

April 15, 2020
us china telecom cybersecurity threats industry news

Amid the COVID-19 threat over the world. The U.S. Government won’t back down nor lower its guard on its cyber-security “wall.” Recently the federal agencies behind this joint recommendation wanted to ban China Telecom Americas operation due to its potential cyber-security risks. Remember the time that the U.S. government ordered sanctions and restrictions against Huawei Telecom? It doesn’t end there, as the spying and intellectual property theft activities appear to proliferate continuously. 


How is it related to spying? 

According to an FCC filing, China Telecom Americas operates a Mobile Virtual Network Operator (MVNO) service using a brand name called CTExcel.’ It resells mobile services directly to retail customers. The Telecom giant “targets CTExcel to more than four (4) million Chinese Americans, two (2) million Chinese tourists visiting the United States annually, 300,000 Chinese students at U.S. colleges, and more than 1,500 Chinese businesses in the United States.” Behind the complaint against the Telecom giant, are the Departments of Justice, Homeland Security, Defense, State, Commerce, and the United States Trade Representative 


How is it a threat to the U.S Government? 

Based on the filing of the U.S agencies, they have substantial reason and possibly undisclosed evidence to come up with the recommendation.  

  • The primary basis of their doubt is the PRC’s influence and ownership of China Telecom the PRC (People’s Republic of China) can easily exploit China Telecom. 
  • The PRC is known for its mandatory collection of information from its state-funded and state-owned businesses as part of its surveillance policies. 
  • China Telecom made inaccurate statements and submitted inconsistent reports to the U.S government on the whereabouts and access of its U.S records, raising suspicions on who has access to those records. 
  • Allegedly the false representation of its cybersecurity practices. It raises doubts about China Telecom’s compliance with federal and state cybersecurity and privacy laws. 
  • The high possibility that China Telecom’s nature of operation would always provide a backdoor to PRC’s state-sponsored attacks. The activities itself is a nesting ground for malicious cybersecurity risks such as espionage, disturbance and misrouting of U.S communications 


iZOOlogic is committed to its awareness of the reputation of different industries, especially on Telecommunications. Our knowledge of cybercrime solutions enables us to stay on top as part of our continuous improvement in fraud detection and prevention. As the intellectual property espionage advances at the forefront of modern cyber-security warfare, it is not only government entities that are the target of such campaigns. Even businesses of all sizes are vulnerable. Fortunately, our Trademark Monitoring suite is a proven risk management solution against intellectual property abuse preventing damages, scams, and unfathomable consequences. 

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