US FCC to update underwater cable management regulations amid US-Russia threats

On Thursday, November 21, the Federal Communications Commission (FCC) of the United States voted unanimously with 5 in favor and 0 against to initiate a “significant, comprehensive review” to update the management rules of submarine internet cables, in response to national security concerns posed by adversaries such as China and Russia.

Recently, two submarine cables in the Baltic Sea were severed one after another, leading surrounding countries to announce investigations into whether it was deliberate sabotage. However, the Danish navy and Swedish police suspect that a Chinese cargo ship, the “Yi Peng 3,” might be involved in the incidents.

FCC Chairwoman Jessica Rosenworcel pointed out that in 2023, Taiwan accused two Chinese vessels of cutting the only two communication cables connecting the Matsu Islands. Attacks by Houthi rebels could also be the reason three submarine cables in the Red Sea were cut, affecting internet services in parts of Asia, Europe, and the Middle East.

Rosenworcel stated, “Although the details of these events are still contentious, it is evident that these facilities are becoming targets for attack.” “Clearly, we need to take more action to protect these facilities,” she said.

Currently, the global network, composed of over 400 submarine cables, handles over 98% of international internet traffic.

Rosenworcel mentioned, “With the expansion of data centers, the rise of cloud computing, and the increasing demand for bandwidth with new large language models, these facilities will become increasingly important.”

FCC noted that the last similar review was conducted in 2001. Since then, significant changes have occurred in the technical, economic, and national security environment surrounding the system.

The FCC proposed that foreign companies denied communication permits on national security grounds should not be allowed to obtain permits for the landing of submarine cables.

Additionally, the FCC recommended prohibiting the use of equipment or services from companies deemed a threat to US national security in submarine cable facilities, including Huawei, ZTE, China Telecom, and China Mobile.

FCC Commissioner Geoffrey Starks mentioned that they are also considering prohibiting other companies on blacklists from obtaining submarine cable licenses. For example, companies on the Department of Commerce Consolidated Screening List would be barred from obtaining permits.

The Department of Commerce’s Consolidated Screening List combines 11 separate screening lists compiled by the Departments of Commerce, State, and Treasury. Due to US export regulations, sanctions, or other restrictions, US companies cannot engage in business with entities on this list.

Starks stated, “China (the CCP) makes no secret of its ambition to control markets and subsequently control global data flow.”

Last month, a bipartisan group of 8 US senators urged President Biden to “review existing vulnerabilities in global submarine cable infrastructure, including threats of sabotage from China and Russia.”

FCC also suggested that submarine cable operators should undergo a commission review every three years and consider shortening the current 25-year license period.

The agency stated that it would seek public input on “how best to improve and streamline submarine cable regulations to promote the efficient deployment of submarine cables while ensuring the security, resilience, and protection of this critical infrastructure.”

(Reuters contributed to this report)