FEATURE
CURRENT TOPICS IN FEDERAL COMMUNICATIONS COMMISSION AND NATIONAL SECURITY REVIEWS FOR SUBMARINE CABLE SYSTEMS BY ANDREW D. LIPMAN, ULISES R. PIN, AND TANYA TIWARI
W
ith over four billion current Internet users, global demand for data has never been greater. Submarine cable systems are key to meeting this demand. Carrying over 99% of all international communications, submarine cables remain the primary method of transporting internet traffic because of their speed, capacity, and security. As the demand for connectivity continues to rise, an evolving geopolitical climate and increased focus on cybersecurity and national security concerns, including ownership of critical infrastructure, have presented new challenges impacting submarine cable transactions and developments. To address these concerns, the United States government dedicates considerable time and resources to national security reviews of foreign investments to ensure data transmitted over submarine cables is not susceptible to foreign adversaries. This article provides an overview of these efforts and regulatory and policy developments in the United States affecting the submarine cable industry.
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UNITED STATES NATIONAL SECURITY REVIEW PROCESS FOR SUBMARINE CABLE SYSTEMS
Submarine cables landing in the United States are subject to regulation by the Federal Communications Commission (“FCC”). Pursuant to the Submarine Cable Act of 1921 (the “Act”), as implemented by Executive Order No. 10530 and Section 1.767 of the FCC’s Rules, operators must obtain an FCC license before operating a submarine cable in the United States. Submarine cable applications and transactions of United States carriers involving certain levels of foreign ownership or participation are subject to considerable scrutiny by the United States government. The FCC generally refers such applications and transactions to the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (commonly known as “Team Telecom”), a task force that conducts a national security and law enforcement reviews to assess potential risks to the interests of the United States. Team Telecom was created through Executive