Background on the Importance of Maritime Telecom Infrastructure
Maritime telecommunications infrastructure, primarily undersea cables, support 99% of global internet traffic and facilitate over 10 trillion dollars in daily financial transactions. Recognizing its critical role, the United States Federal Communications Commission (FCC) has updated its regulatory policy to bolster the deployment of maritime telecom infrastructure along US coasts, enhancing national security.
FCC’s Regulatory Changes
The FCC acknowledged the significance of undersea cables as a matter of national security and streamlined processes, eliminated bureaucratic hurdles, and provided incentives to boost the deployment of this infrastructure. This infrastructure, which can perform more than a single satellite at lower costs, remains unnoticed as it lies hidden beneath the ocean.
Security Concerns and FCC’s Measures
Given the immense value of maritime telecom infrastructure, the FCC mandated measures to safeguard undersea cables from potential malicious actions by foreign governments. The regulator legalized the concept of “presumption” to deny licenses to companies potentially linked with foreign governments and restricted rental contracts for such firms. Additionally, the FCC established cybersecurity and physical security guidelines for cables, promising to expedite license delivery procedures for US-affiliated companies.
US Competitive Stance Against China
With these regulatory changes, the US is openly advancing to compete with China for undersea telecom dominance. Chinese companies like Huawei Marine Networks and ZTT have cleverly entered the maritime telecom infrastructure business, with at least three of them ranking among the world’s top ten in less than a decade.
The US aims to prevent China from accessing its most valuable resource—information transmitted through telecom networks—and simultaneously create new business opportunities for US technology firms venturing into building new undersea cables. The global market for submarine infrastructure systems is projected to reach 19,950 million USD in 2025 and 33,750 million USD by 2030, growing at a compound annual rate of 11.1%.
Security Concerns and Recent Incidents
The FCC’s actions come in response to heightened security concerns, as adversaries like China pose significant threats to undersea cable infrastructure. Recent incidents in the Baltic Sea, where a 1,170 km cable connecting Finland and Germany was fractured, and another 218 km cable between Lithuania and Sweden became partially inoperative, highlight the vulnerability of this critical infrastructure.
Suspicions have fallen on Russia and China for these incidents, though technical failures are also possible. Annually, around 200 incidents are reported related to undersea cable infrastructure.
FCC’s Focus on Security
“The FCC acts to accelerate cable construction and security,” stated the regulator. “New rules emphasize protecting undersea cable infrastructure from foreign adversaries’ threats.” The FCC’s measures ensure the US remains prepared and capable of deploying high-capacity submarine cable infrastructure to meet current and future internet demands, solidifying its position as a global leader in critical and emerging technologies, including AI.
Key Questions and Answers
- What is the significance of maritime telecom infrastructure? Maritime telecommunications infrastructure, primarily undersea cables, support 99% of global internet traffic and facilitate over 10 trillion dollars in daily financial transactions.
- Why did the FCC update its regulatory policy? The FCC recognized the critical role of undersea cables in national security and streamlined processes to boost their deployment along US coasts.
- What security concerns prompted the FCC’s regulatory changes? Heightened security concerns due to potential threats from foreign adversaries like China, as evidenced by recent incidents in the Baltic Sea.
- What is the global market outlook for submarine infrastructure systems? The global market for submarine infrastructure systems is projected to reach 19,950 million USD in 2025 and 33,750 million USD by 2030, growing at a compound annual rate of 11.1%.
