FEATURE
REGULATORY AND NATIONAL SECURITY REFORMS AFFECTING THE SUBMARINE CABLE INDUSTRY BY ANDREW D. LIPMAN, ULISES R. PIN AND ROSS SLUTSKY
W
hile COVID-19 rightfully remains the primary focus of the international business community, over the course of the past year, there have also been a number of important policy and regulatory changes in the United States affecting the submarine cable industry which warrant closer examination. This article discusses primarily the reforms to the “Team Telecom” review process and its impact on the submarine cable industry. The global demand for data has never been greater. Submarine cable systems are key to meeting this demand. Subsea systems carry over 99 percent of all international communications, and remain the primary method of transporting internet traffic because of their speed, capacity and security. Currently, there are about 400 submarine cables worldwide, with an estimated total length of more than 1.2 million kilometers, or enough to circle the Earth 30 times. The combined submarine cable industry is expected to increase in value from approximately US $12 billion in 2018 to approximately US $30 billion by 2027. At the same time as the demand for connectivity rises, the challenges of constructing a submarine cable project have never been greater. Geopolitics present an obvious
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hurdle, as the United States experience a heightened national security profile and economic nationalism that threaten international cooperation. Navigating national security, data privacy, cybersecurity and other regulations will continue to be challenging in the coming years.
A. OVERVIEW OF EXECUTIVE ORDER ON ESTABLISHING THE COMMITTEE FOR THE ASSESSMENT OF FOREIGN PARTICIPATION IN THE UNITED STATES TELECOMMUNICATIONS SERVICES SECTOR
On April 4, 2020, President Trump signed an Executive Order (EO) clarifying and formalizing the role of the ad hoc interagency body historically known as “Team Telecom.” The EO authorized the newly formed Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (“Committee”) to conduct a national security and law enforcement review of any applications and licenses that pose risks to national security and law enforcement interests of the United States. Practically speaking, the EO brought structure to the Team Telecom process by implementing deadlines for review of applications while also expanding the reach and scope of applications subject to review.
