FCC fast-tracks US firms in subsea overhaul aimed squarely at China

The FCC announced on June 3 that it plans to toughen oversight of submarine communications cables, proposing rules that will make it harder for Chinese companies to provide equipment while fast-tracking approvals for trusted US technology firms.

Among the most significant changes, the FCC plans to require licences for the first time for operators of submarine line terminal equipment, the systems that connect undersea cable networks to US terrestrial facilities and perform the most critical function in any submarine cable system. That requirement closes a regulatory gap that has left a key point of vulnerability outside the licensing framework entirely.

The proposed rules are also expected to expand existing equipment bans beyond specific named companies to cover technology originating from China or any other foreign adversary. The FCC last year barred equipment and services from companies including Huawei, ZTE, China Telecom and China Mobile from undersea cable facilities. The new proposals would go further, applying restrictions on a country-of-origin basis rather than a company-by-company one.

Companies seeking accelerated approvals for additional cable systems would be required to meet stricter security requirements, including safeguards against espionage, stronger data protection measures and enhanced compliance monitoring.

Meta and Google, both major investors in global cable networks that support cloud computing, AI services and rising internet traffic demands, are among those likely to benefit from the fast-track process.

FCC chair Brendan Carr said the order was designed to facilitate rather than frustrate the expansion of submarine cable infrastructure, while making it harder for foreign nations to gain influence or access through affiliate third-party companies. “We not only want to unleash the deployment of new undersea cables, we want to make sure those cables are secure,” Carr said.

The regulatory push reflects growing alarm in Washington over the vulnerability of subsea infrastructure. For more than a year, US officials have voiced concern about the network of more than 400 subsea cables that handle nearly all international internet traffic and about threats from China and Russia. US Senate Foreign Relations Committee chair Jim Risch urged new efforts in April to address growing national security concerns, calling for public attribution when sabotage occurs.

The proposals arrive as hyperscaler investment in new cable routes accelerates sharply, driven by AI infrastructure demand. The FCC’s moves signal that Washington intends to shape not just who builds that infrastructure, but whose equipment sits inside it.

FCC fast-tracks subsea cable approvals in bid to open market beyond hyperscalers