US FCC adds Russia's Kaspersky, China telecom firms to national security threat list

The Federal Communications Commission (FCC) on Friday added Russia's AOKasperskyLab,ChinaTelecom(Americas) Corp andChinaMobile InternationalUSA to itslistof communications equipment and service providers deemedthreats toU.S.nationalsecurity.

The regulator last year designated five Chinese companies including Huawei Technologies Co and ZTE Corp as the firstfirmson thelist, which was mandated under a 2019 law.Kasperskyis the first Russian companylisted.

FCCCommissioner Brendan Carr said the new designations "will help secure our networks fromthreats posed by Chinese and Russian state-backed entities seeking to engage in espionage and otherwise harm America’s interests."

U.S. officials have long said that runningKasperskysoftware could open American networks to malign activity from Moscow and bannedKaspersky's flagship antivirus product from federal networks in 2017. Moscow-basedKasperskyhas consistently denied being a tool of the Russian government,

In namingKaspersky, theFCCannouncement did not cite Russia's invasion of Ukraine or recent warnings by President Joe Biden of potential cyberattacks by Russia in response toU.S. sanctions and support of Ukraine.

Kasperskysaid in a statement that it was disappointed in theFCCdecision, arguing it was "made on political grounds." The move was “unsubstantiated and is a response to the geopolitical climate rather than a comprehensive evaluation of the integrity ofKaspersky’s products and services," the company said.

The Chinese Embassy in Washington said Friday that theFCC"abused state power and maliciously attacked Chinesetelecomoperators again without factual basis. TheU.S. should immediately stop its unreasonable suppression of Chinese companies.

"Chinawill take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies," it added.

The Chinese companies did not immediately comment.

In October, theFCCrevoked theU.S. authorization forChinaTelecom(Americas), saying it "is subject to exploitation, influence and control by the Chinese government."

TheFCCcited its prior decisions to deny or revoke the Chinesetelecomcompanies' ability to operate in United States in its decision to add them to thethreatlist.

TheFCCalso revoked theU.S. authorizations ofChinaUnicom and Pacific Networks and its wholly owned subsidiary ComNet.

In 2019, theFCCrejectedChinaMobile's bid to provideU.S.telecommunications services, citingnationalsecurityrisks.

Inclusion on the "coveredlist" means money from theFCC’s $8 billion annual Universal Service Fund may not be used to purchase or maintain products from the companies. The fund supportstelecommunications for rural areas, low-income consumers, and facilities such as schools, libraries and hospitals.

TheFCClast year also named Hytera Communications, Hangzhou Hikvision Digital Technology and Dahua Technology assecuritythreats.

FCCChair Jessica Rosenworcel said the agency worked closely withU.S.nationalsecurityagencies to update thelistand will add additional companies if warranted.

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