FX.co ★ US bans China Mobile from operating in its territory

It is impossible to imagine a person without a mobile phone nowadays, while it is quite easy to imagine profits of mobile network operators. The volumes are impressive. That’s why authorities of countries treat their domestic mobile market so carefully, refusing access to it for foreign companies.

A vivid example of such a situation is a ban on operation of China Mobile in the United States for reasons of national security. One can say nothing to such a strong argument. “After significant engagement with China Mobile, concerns about increased risks to U.S. law enforcement and national security interests were unable to be resolved. Therefore, the Executive Branch of the U.S. government <…> recommends that the FCC deny China Mobile’s Section 214 license request,” National Telecommunications and Information Administration Statement reads. The US officials agree with NTIA’s experts, threatening to limit commercial operation of local companies due to their cooperation with the Chinese operator.

China Mobile is the world’s largest mobile phone network with over 899 million subscribers. The corporation applied for a license through the Federal Communications Commission back in 2011. After the news of the US refusal, the shares of the operator lost 2.6 percent in value sinking to the four-year low.