Review of Submarine Cable Landing License Rules and Procedures To Assess Evolving National Security, Law Enforcement, Foreign Policy, and Trade Policy Risks
In this document, the Federal Communications Commission (Commission or FCC) adopted a Further Notice of Proposed Rulemaking (FNPRM) that proposes to prevent national security risks from current and potential foreign adversaries, while encouraging the use of trusted technology and measures to further accelerate the buildout of submarine cables. The FNPRM proposes a regulatory framework that would grant a blanket license to entities that own or operate Submarine Line Terminal Equipment (SLTEs), subject to certain exclusions and routine conditions, such as a tailored foreign adversary annual report. The FNPRM proposes new certifications and routine conditions related to foreign adversaries to further protect submarine cables from national security risks. The FNPRM also proposes an approach to expedite deployment of submarine cables that connect to the United States by presumptively excluding submarine cable applications from referral to the relevant Executive Branch agencies if they meet certain standards. The FNPRM seeks comment on requiring existing licensees to remove from their submarine cable system covered equipment or services, within a specified timeframe prior to the expiration of the license. The FNPRM also seeks comment on how the Commission can use its authority to incentivize and encourage the adoption and the use of trusted technologies produced and provided by the United States and its foreign allies.
What this rule actually says
The FCC is proposing new rules about submarine cables—the massive underwater fiber optic cables that carry international internet traffic. The proposal aims to prevent hostile foreign governments from tampering with these cables or the equipment connected to them. It would make it easier for approved companies to build and operate these cables, while adding security requirements (like annual reports about foreign ties) for those who do.
Who it applies to
- If you own, operate, or manage submarine cable infrastructure (the physical cables or the equipment that connects to them): this applies to you.
- If you build AI products that run entirely on US servers and don't involve submarine cable ownership or operation: this almost certainly does not apply to you.
- If you're a small AI startup using cloud providers (AWS, Google Cloud, Azure, etc.): this doesn't apply to you directly. Your cloud provider handles submarine cable infrastructure.
- If you're considering building international data infrastructure or partnering with carriers: this may become relevant later.
- Jurisdiction: This is a US FCC rule, so it applies to submarine cables that land in the US or connect US territory.
- Data scope: This rule is about the physical cables and hardware, not about what data travels through them. It's infrastructure-level, not application-level.
What founders need to do
- Check if this affects you (30 minutes): Ask yourself: "Do I own, operate, or license submarine cable infrastructure?" If no, you're done. If yes, proceed.
- Monitor the FCC docket (ongoing, 2-3 hours/month): This is currently a *proposed* rule in the comment period. Subscribe to FCC notices on submarine cables if you're in telecom infrastructure.
- Engage if relevant (1-2 weeks if applicable): If you operate submarine cables, consider filing comments with the FCC during the public comment period explaining how the rules would affect your business. Deadlines will be announced in the Federal Register.
- Audit your foreign ownership and partnerships (1-2 weeks if applicable): If this applies to you, you'll likely need to document and report on foreign government ties and equipment sourcing annually.
- Budget for compliance (ongoing if applicable): Plan for legal review and annual reporting obligations if you're in scope.
Bottom line
Ignore this unless you own or operate submarine cable infrastructure—if you're an indie AI founder building applications, this is someone else's problem.