FCC Eyes Undersea Cables: Spy Risks Spark Rule Shakeup
Published Date: 3/13/2025
Proposed Rule
Summary
The FCC is updating the rules for submarine cable licenses to better protect national security and keep up with new technology. They want to make license terms shorter and require regular check-ins every three years. This affects companies owning or operating these cables and could mean new fees and deadlines soon.
Analyzed Economic Effects
8 provisions identified: 3 benefits, 5 costs, 0 mixed.
Three‑Year Reporting or Shorter Licenses
The FCC proposes a three‑year periodic reporting requirement for submarine cable landing license holders, and alternatively seeks comment on shortening the current 25‑year license term or using a shorter term together with periodic reporting. If adopted, license holders would need to report more often or seek renewals more frequently under the 25‑year rule change.
National Security & Policy in Public Interest Tests
The FCC proposes to codify that national security, law enforcement, foreign policy, and trade policy concerns are important factors in its public interest review of submarine cable license applications. Applicants should expect these factors to be considered when the FCC decides whether to approve, deny, or renew a license.
New Character Qualifications for Applicants
The FCC proposes to codify character qualification rules for submarine cable applicants, including consideration of violations of the Cable Landing License Act or Communications Act, false statements to the FCC, felony convictions, adjudicated antitrust violations, or fraud before other agencies. Applicants with these issues could be denied licenses or face revocation risks.
More Detailed Applicant Information Required
The FCC proposes requiring more detailed, targeted, and granular information in cable license applications about ownership, control, and use of submarine cable systems to assess evolving national security risks. Applicants would need to provide expanded information as part of the application process.
Clear Rules on When Licenses Are Required
The FCC proposes to codify when a submarine cable landing license is required: (1) between the continental United States and a foreign country; (2) connecting Alaska, Hawaii, or U.S. territories or possessions with (i) a foreign country, (ii) the continental United States, or (iii) each other; and (3) for points within U.S. jurisdictions where the cable is laid in international waters. Cable owners and operators will have clearer rules about which cable links need a license.
Possible Definition of 'Submarine Cable System'
The FCC asks whether to adopt a formal definition of a "submarine cable system" that would include wet and dry segments, landing stations, and equipment like Submarine Line Terminal Equipment (SLTE). If adopted, that definition would determine what facilities and equipment fall under the licensing rules.
Circuit Capacity Data Quality and Sharing
The FCC seeks comment on improving the quality of reported circuit capacity data for submarine cables and on facilitating sharing of such information with other Federal agencies. Cable operators may be asked to provide higher‑quality capacity data and allow that data to be shared across agencies.
Paperwork Relief for Very Small Firms
As part of the Paperwork Reduction Act review, the FCC seeks specific comment on ways to reduce information collection burdens for small businesses with fewer than 25 employees. This could inform targeted relief or reduced burdens for very small firms in future rules.
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Key Dates
Department and Agencies
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