"Therefore, the Executive Branch of the USA 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".
The NTIA's filing noted that, were China Mobile to get its "common carrier" license, it would gain more access to US telecoms network infrastructure-from cables to satellites-that "was created with minimal security features because it was assumed that only trusted parties would have access".
Hong Kong: The US government moved on Monday to block China Mobile Ltd from offering services to the US telecommunications market, recommending its application be rejected because the government-owned firm posed national security risks.
It had planned something similar for the U.S. but this week (though not a direct to consumer offering apparently, but aimed at the enterprise sector) but its application was blocked following a recommendation from the National Telecommunications and Information Administration.
The advisory body, the National Telecommunications and Information Administration, is part of the Department of Commerce. On Tuesday, China's currency, the yuan, plunged against the dollar to its lowest level in nearly a year, a movement that Yi Gang, the head of China's central bank, attributed in part to market uncertainties.
It said the company was "subject to exploitation, influence and control by the Chinese government" and that its application posed "substantial and unacceptable national security and law enforcement risks in the current national security environment".
The US Commerce Department recommended against approval of China Mobile's seven year old application to enter the domestic market on Monday, citing national security concerns.
China Mobile applied for what is known as a Section 214 license back in 2011.
"In the current national security environment, it is the view of the Executive Branch, after consultation with the U.S. intelligence community, and after consideration of additional information submitted by the applicant, that China Mobile's application does not serve the public interest", the NTIA noted in its lengthy report on the topic.
Officials from the Federal Bureau of Investigation, the Department of Homeland Security and the Justice Department's national security division - also known as "Team Telecom" - were concerned that the move would give the company access to physical infrastructure and internet traffic that might allow China to spy more easily on the United States government and steal intellectual property from American companies, according to a Los Angeles Times report in 2012. Customers could include fixed and mobile network operators, calling-card companies, and business customers. It also had 130.4 million fixed-line broadband subscribers in the same period.
China Mobile Communications Corp, a state-controlled firm, owned nearly 73% of China Mobile as of December, according to Thomson Reuters data.
ZTE has had some good news in America, but China Mobile has had bad news.
The state-owned group owned 72.7 per cent of China Mobile's total issued shares as of December 31, while the rest was held by public investors.