FCC imposes new licensing for submarine cable equipment to harden security
The FCC has implemented a new licensing regime for Submarine Line Terminal Equipment (SLTE) to enhance security and regulatory oversight of transcontinental communications infrastructure. The rules introduce blanket licenses for trusted operators while excluding entities with ties to foreign adversaries or histories of regulatory non-compliance.
Key Takeaways
- Blanket licenses are now granted to trusted operators, while entities with ties to foreign adversaries or 20-year histories of regulatory non-compliance are excluded.
- The rules presumptively exempt applications meeting ten specific national security standards from the often lengthy Team Telecom interagency review process.
- Licensees are now prohibited from using third-party service providers controlled by foreign adversaries for any functions beyond emergency wet-segment repairs.
- Existing submarine cable license holders must certify within 60 days of the effective date that no equipment from the FCC's Covered List will be added to their systems.
Why It Matters
This shift transforms submarine cable licensing from a technical formality into a critical security gate for the global data backbone. By regulating SLTE specifically, the FCC is closing a loophole where inland handoffs to terrestrial networks remained vulnerable to foreign interception or disruption. For streaming providers and CDN operators, this increases supply chain compliance costs while potentially accelerating new cable deployments by streamlining 'trusted' applications. Watch for whether this 'small yard, high fence' approach leads to a bifurcated global infrastructure as competitors align with or move away from U.S. landing points.
Additional Context
The FCC’s tightening of subsea oversight comes amid a significant escalation in physical threat and geopolitical maneuvering involving underwater infrastructure. As of April 2025, there were 597 subsea cables in operation or under construction worldwide, carrying an estimated 99% of all international data traffic (per Submarine Telecoms Forum). These networks are increasingly viewed as a 'new front' in the strategic rivalry between Washington and Beijing. For instance, the SeaMeWe-6 project was redirected from a Chinese contractor to U.S.-based SubCom following a 2023 lobbying campaign (per Reuters).
Security concerns are underscored by a series of recent disruptions. In late 2024, the Chinese vessel Yi Peng 3 was investigated for dragging its anchor over cables connecting Finland to Germany and Sweden to Lithuania (per Hudson Institute). Similar 'gray-zone' incidents occurred around Taiwan in early 2025, where four cables were disrupted in just two months. These events led the EU to release an Action Plan on Cable Security in February 2025, mirroring the FCC’s efforts to treat subsea hardware as critical national assets rather than standard commercial utility.
Simultaneously, the surge in generative AI is driving massive demand for ultra-low latency transcontinental links. Hyperscalers like Google and Meta, who are primary investors in new subsea routes, stand to benefit from the FCC's new streamlined fast-track approval process. However, industry analysts at the Global Times (July 2026) warn that these unilateral U.S. regulations may force a global split in subsea supply chains, potentially raising operational costs for international digital businesses that are forced to navigate competing regulatory spheres between the West and the Digital Silk Road.
Read full article at akingump.com
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