Overview
- The FCC added California-based Digitalsystem Technology to its national-security risk list and denied the company authority to provide international telecommunications services, a move announced in early July 2026.
- The agency cited ownership by a Chinese national and operational links with PCCW, China Unicom and China Mobile as grounds for the decision and warned those ties could be used to collect, disrupt or misroute U.S. communications.
- The agency’s order noted Digitalsystem had listed Huawei, ZTE, Dahua and Hikvision as partners on its website and later relabeled them as clients, a change the FCC said undermined the company’s candor for mitigation.
- An interagency committee recommended denying Digitalsystem’s application because regulators found mitigation measures infeasible and concluded foreign adversary control presented substantial and unacceptable risks.
- The action extends a broader FCC campaign that has already barred major Chinese carriers from U.S. international service and restricted imports of certain Chinese-made telecom equipment, which could affect how U.S. carriers connect with foreign providers.