The U.S. Court of Appeals for the District of Columbia Circuit denied China Telecom Americas Corp.'s emergency motion to pause a Federal Communications Commission order revoking the company's authorizations to continue operating in the U.S.
A three-judge panel of the court on Dec. 2 ruled that the U.S. arm of China Telecom Corp. Ltd. did not satisfy the "stringent" requirements for a stay order on the FCC's move, pending a court review.
China Telecom Americas said it must notify customers of the FCC decision by Dec. 4, or it may be forced to cease "significant operations" in the absence of a temporary halt to the FCC action.
In appealing the FCC's decision, China Telecom Americas said the commission did not conduct an administrative hearing and failed to provide evidence that the company was an "imminent" national security threat. Lawyers for the U.S. Department of Justice and the FCC, however, said the China Telecom unit was unlikely to succeed on its claims.