US FCC Adopts Order to Accelerate Submarine Cable Buildout & Security

Details: By Winston Qiu; Category: Insights; 11 August 2025

On August 7, 2025, the US Federal Communications Commission (FCC) voted and adopted the Report and Order and Further Notice of Proposed Rulemaking (FNPRM) on submarine cable landing license rules, to unleash the buildout of secure submarine cable infrastructure and prevent espionage or sabotage by restricting foreign involvement (especially Chinese firms) in cable projects linking the US to global networks.

Submarine cable systems carry roughly 99% of global internet traffic and are key to further extending America’s leadership in AI and next-generation technologies. The new rules streamline the submarine cable licensing process, give certainty to investors, and accelerate the timelines for building cables. To address the reality that foreign adversaries like China pose greater threats to submarine cable infrastructure than ever, the new rules emphasize protecting submarine cable infrastructure from foreign adversary threats. The FCC’s action follows the guidance of President Trump’s America First Investment Policy Memorandum—streamlining investment into the United States, coupled with restrictions on foreign adversaries that seek to exploit U.S. vulnerabilities and threaten American national security.

On July 17, 2025, the FCC released the Report and Order and Further Notice of Proposed Rulemaking (FNPRM), taking further actions and measures on the proposed Review of Submarine Cable Landing License Rules and Procedures which started in last October.

the Report and Order and Further Notice of Proposed Rulemaking (FNPRM) consists of two parts: a Report and Order and a Further Notice of Proposed Rulemaking.

Report and Order

In the Report and Order, in addition to others, it includes the following main rules:

Foreign Adversary Rules
1. Foreign Adversary Definition: Following the Department of Commerce’s determinations, foreign adversary includes (1) The People’s Republic of China, including the Hong Kong Special Administrative Region and the Macau Special Administrative Region (China); (2) Republic of Cuba (Cuba); (3) Islamic Republic of Iran (Iran); (4) Democratic People’s Republic of Korea (North Korea); (5) Russian Federation (Russia); and (6) Venezuelan politician Nicolás Maduro (Maduro Regime). Importantly, the FCC rules assess private entities that are operating in foreign adversary countries. It considers any firm operating in China is at risk of official influence that belies traditional conceptions of a private company.
2. Foreign Adversary Presumptive Disqualifying Condition: The FCC adopts a presumption that a foreign adversary applicant is not qualified to hold a cable landing license unless the applicant overcomes the adverse presumption. Specifically, the disqualifying condition presumptively precludes the grant of a submarine cable application filed by any applicant: (1) That is owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary; (2) That is identified on the Covered List that the Commission maintains pursuant to the Secure Networks Act; and/or (3) Whose authorization, license, or other Commission approval, whether or not related to operation of a submarine cable, was denied or revoked and/or terminated or is denied or revoked and/or terminated in the future on national security and law enforcement grounds, as well as the current and future affiliates or subsidiaries of any such entity. The FCC applies this presumptive disqualifying condition to: (1) any initial application for a cable landing license that is filed after the effective date of the Report and Order, and (2) all other types of submarine cable applications—including an application for modification, assignment, transfer of control, or renewal or extension of a cable landing license license—that are filed after the effective date of the Report and Order. It is clearly stated in the Report and Order, the presumptive disqualifying condition applies to any initial application for a cable landing license filed by China Mobile International (USA) Inc. (China Mobile USA), China Telecom (Americas) Corporation (CTA), China Unicom (Americas) Operations Limited (CUA), Pacific Networks Corp. (Pacific Networks), and ComNet (USA) LLC (ComNet) and their current and future affiliates and subsidiaries.
3. Character Presumptive Disqualifying Condition: The FCC presumes an applicant does not possess the requisite character qualifications to become a cable landing licensee if the applicant has: (1) violated the Cable Landing License Act; (2) committed national security-related violations of the Communications Act or Commission rules as identified in Commission orders, including but not limited to violations of rules concerning the Covered List that the Commission maintains pursuant to the Secure Networks Act; (3) made false statements or engaged in fraudulent conduct concerning national security or the Cable Landing License Act; (4) been subject to an adjudicated finding of making false statements or engaging in fraudulent conduct before another U.S. government agency; or (5) materially failed to comply with the terms of a submarine cable landing license, including but not limited to a condition requiring compliance with a mitigation agreement with the Executive Branch agencies, including the Committee (Team Telecom).
4. Foreign Adversary Cable Landing Presumptive Disqualifying Condition: The FCC adopts a disqualifying condition that will presumptively preclude the grant of a submarine cable application filed by any applicant: (1) That seeks to land a new submarine cable in a foreign adversary country; (2) That seeks to modify, renew, or extend its cable landing license to add a new landing located in a foreign adversary country.
5. Prohibition on IRUs and Capacity Leases with Foreign Adversaries: The FCC adopts a condition that cable landing licensees are prohibited from entering into arrangements for Indefeasible Rights of Use (IRUs) or leases for capacity on submarine cable systems landing in the United States, where such arrangement for IRUs or lease for capacity would give an entity that is owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary the ability to install, own, or manage SLTE on a submarine cable landing in the United States.
Cable Landing License Processes to Withhold or Revoke and/or Terminate a License
1. Process to Withhold or Revoke and/or Terminate a License: The FCC adopts the proposal to apply an informal written process in cases involving withholding or revocation and/or termination of a cable landing license. The informal written process will provide cable landing licensees with timely and adequate notice of the reasons for any revocation action, and opportunity to cure noncompliance. Oral hearing procedures are not warranted in all cases involving revocation of cable landing licenses.
2. Process to Revoke Licenses of Licensees That are Insolvent or No Longer Exist: If a licensee fails to timely respond to the information collection required in the Report and Order and subsequently fails to achieve compliance after notice of the failure, the FCC will apply the revocation process to revoke its license or remove the licensee from a license held by multiple licensees. The FCC would deem the failure to respond to this Report and Order as presumptive evidence that the licensee is no longer in operation. The FCC will publish in the Federal Register a list of non-responsive licensees and non-operating licensees identified by responding licensees and provide an additional thirty (30) days from that publication for those licensees to respond to the information collection requirement or file a notification to relinquish its interests in the license.
Cable Landing License General Requirements
1. FCC Licensing Authority Under the Cable Landing License Act: The FCC adopts the rule with clarification as follows: A cable landing license must be obtained prior to landing a submarine cable that connects: (1) The continental United States with any foreign country; (2) Alaska, Hawaii, or the U.S. territories or possessions with a (i) foreign country, (ii) the continental United States, or (iii) with each other; or
  (3) Points within the continental United States, Alaska, Hawaii, or a territory or possession in which the cable is laid in areas beyond U.S. territorial waters, which extend 12 nautical miles seaward from the coastline.
2. Submarine Cable System Definition: The FCC adopts the following definition: A submarine cable system carries bidirectional data and voice telecommunications traffic consisting of one or more submarine cable(s) laid beneath the water, and all associated components that support the submarine cable system end-to-end, including the segments up to the system’s terrestrial terminations at one or more SLTEs, which include transponders that convert optical signals to electrical signals and vice versa. Importantly, the definition ensures that a submarine cable system extends to and includes the SLTE, whether it is located in a cable landing station near the initial beach landing or further in-land within data centers.
3. Twenty-Five Year License Term: The FCC retains the 25-year term for submarine cable licenses.
Submarine Cable Applicant/Licensee Requirements
1. Licensee Requirements: The FCC retains the licensing requirements for those entities that own or control a 5% or greater interest in the cable system and use the U.S. points of the cable system and those entities that control a cable landing station, but the FCC excludes those entities that merely own, but do not control, a cable landing station from becoming an applicant/licensee for a cable landing license. At this time, the FCC declines to adopt a licensing requirement for SLTE owners and operators.
  1. Five Percent Ownership Threshold and Use of U.S. Points: The FCC retains the requirement that an entity owning or controlling a 5% or greater interest in the cable system and using the U.S. points of the cable system must submit an application to become a licensee.
  2. Control of Cable Landing Station: The FCC revises its license requirement with respect to cable landing stations and require entities that control submarine cable landing stations to be licensees. Entities that merely own a cable landing station are no longer required to become licensees.
  3. Submarine Line Terminal Equipment (SLTE) Owners and Operators: While the FCC includes SLTE within the definition of a submarine cable system, the FCC declines to adopt a licensing requirement for owners and operators of SLTE at this time. The FCC will seek comment in the Further Notice as to how the FCC can best incorporate such entities into its regulatory framework.
2. Application Requirements: The FCC adopts new application requirements that will ensure the FCC has targeted and granular information about the submarine cable system and third-party foreign adversary service providers, which is critical to improve the FCC’s assessment of national security risks. The FCC retains the current requirement for applicants to identify their 10% or greater direct and indirect equity and/or voting interests.
  1. Public Interest Statement: The FCC adopts the requirement that an applicant seeking a submarine cable landing license or modification, assignment, transfer of control, or renewal or extension of a submarine cable landing license shall include in the application a statement demonstrating how the grant of the application will serve the public interest.
  2. Ten Percent Threshold for Reportable Interests: The FCC retains the current requirement for applicants to identify the 10% or greater direct and indirect equity and/or voting interests held in the submarine cable applicants, instead of adopting the 5% reportable ownership threshold as proposed in its Submarine Cable Landing License NPRM in the last October.
  3. Submarine Cable System Information: The FCC adopt to require applicants seeking a cable landing license or modification, assignment, transfer of control, or renewal or extension of a license, and licensees submitting a Foreign Adversary Annual Report, to provide additional detailed information concerning the submarine cable system. Specifically, the FCC adopts the proposal to require applicants and licensees to submit with these applications and/or Foreign Adversary Annual Reports the following detailed information regarding the submarine cable system:
    1. the states, territories, or possessions in the United States and the foreign countries where the submarine cable system will land;
    2. the coordinates and, if available, address where each Power Feed Equipment (PFE) and each Submarine Line Terminal Equipment (SLTE) is located and connected with the terrestrial land based system(s) and from where each is operated;
    3. the number of segments in the submarine cable system and the designation of each (e.g., Segment A, Main Trunk, A-B segment);
    4. the length of the submarine cable system by segment and in total;
    5. the location, by segment, of any branching units;
    6. the geographic coordinates, street address, and county or county equivalent of each U.S. and non-U.S. cable landing station and beach manhole;
    7. the number of optical fiber pairs, by segment, of the submarine cable system;
    8. the design capacity, by segment, of the submarine cable system;
    9. the route position lists containing the geographic coordinates of the wet segment of the submarine cable system, including the U.S. and foreign portions of the submarine cable system;
    10. the coordinates and, if available, addresses of each network operations center (NOC) and backup NOC and each security operations center (SOC)314 and backup SOC, if distinct from the NOC; and
    11. Anticipated time frame when the applicant(s) intends to place the submarine cable system into service.
  4. Third-Party Foreign Adversary Service Provider or Access from Foreign Adversary Information: The FCC adopts the proposal to require applicants to report whether or not they use and/or will use third-party foreign adversary service providers in the operation of the submarine cable. Specifically, the FCC requires applicants to report whether or not they use and/or will use the following third-party service providers in the operation of the submarine cable system:
    1. any entity that is owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary,
    2. any entity identified on the Covered List; and/or
    3. any entity that can access the submarine cable from a foreign adversary country, and to identify any such foreign adversary country.
3. Required Certifications for Applicants and Licensees: The FCC adopts rules requiring applicants to certify whether or not they exhibit any of the criteria set out in the presumptive disqualifying conditions; that they have created, updated, and implemented a cybersecurity risk management plan; that they comply with Covered List requirements; and require licensees to inform the Commission of any Covered List equipment/services in a one-time collection. The FCC also holds applicants and licensees responsible for the acts, omissions, or failures of third-parties that impact the cybersecurity of the applicant’s systems and services.
  1. Certification of Presumptive Disqualifications: The adopts new certification requirements consistent with the presumptive disqualifying conditions. Specifically, the FCC requires an applicant seeking a cable landing license or modification, assignment, transfer of control, or renewal or extension of a cable landing license to certify whether or not it exhibits any of the criteria set out in the foreign adversary and character presumptive disqualifying conditions.and the foreign adversary cable landing disqualifying conditions.
  2. Cybersecurity and Physical Security Risk Management Plan Certifications: To protect submarine cable infrastructure from cybersecurity threats, the FCC requires all applicants and licensees to certify that they have created, updated, and implemented a cybersecurity and physical security risk management plan and will take reasonable measures to protect their systems and services from cybersecurity risks, as supported by the record.
  3. Covered List Certifications: The FCC requires applicants submitting initial cable landing license applications to certify that their submarine cable system will not use covered equipment or services (i.e., the equipment or services identified on the Covered List). The FCC requires existing licensees to certify that they will not add covered equipment or services to their submarine cable system under the license in two scenarios: i. Covered List Certification for Cable Landing License Applications, and for Addition of New Segment to Currently Licensed Cable, and ii. Covered List Certification for Cable Landing Licenses. The FCC further requires licensees to disclose information about the covered equipment or services in their submarine cable system as part of the one-time information collection, as stipulated under the Covered List One-Time Information Collection From Licensees.
New Routine Conditions for Cable Landing Licenses
1. Eliminate 2002 Distinction: The FCC adopts the proposal to eliminate the distinction in section 1.767(g) that applies the routine conditions only “to each licensee of a cable landing license granted on or after March 15, 2002“, and apply the routine conditions “to each licensee of a cable landing license” irrespective of the date of grant.
2. Prohibition on IRUs and Capacity Leases with Foreign Adversaries: The FCC adopts a routine condition that prohibits cable landing licensees from entering into new or an extension of existing arrangements for IRUs or leases for capacity on submarine cable systems landing in the United States, where such arrangement or lease would give an entity that is owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary, the ability to install, own, or manage SLTE on a submarine cable landing in the United States.
3. Prohibit Licensees from Adding Covered Equipment or Services: The FCC adopts a routine condition that a licensee whose application for a cable landing license is filed and granted after the effective date of the new rules, shall not use equipment or services identified on the Covered List on its submarine cable system subject to the license.
4. Foreign Adversary Annual Report: The FCC adopts a new routine condition requiring a cable landing licensee whose license was or is granted prior to the effective date of the new rules, to file a Foreign Adversary Annual Report if such licensee meets one or more of the criteria specified therein.
5. Commencement of Service Requirement: The FCC adopts a routine condition requiring that a licensee must commence commercial service on the submarine cable under its license within three years following the grant of the license or seek a waiver. The licensee must identify the projected in-service date and reasons for the delay and demonstrate good cause for grant of a waiver.
6. Notification of Name Changes of the Licensee or Submarine Cable System: The FCC adopts the proposal to require the lead licensee to file the notification with the FCC if there are multiple licensees of the submarine cable system. Specifically, the FCC requires that the lead licensee file a notification of any change in the name of the submarine cable system within the 30-day timeframe. The FCC requires each licensee to notify the FCC of any changes to its own name within the 30-day timeframe as each licensee is best situated to know and timely disclose this information.
7. Changes in the Points of Contact: The FCC adopts the proposal to add a new routine condition requiring cable landing licensees to notify the FCC of any changes to their contact information within thirty (30) days of such change.
Other Changes to Current Requirements
1. Existing Streamlining Process: Applicants seeking streamlined processing must certify, among other things, that “all ten percent or greater direct or indirect equity and/or voting interests, or a controlling interest, in the applicant are U.S. citizens or entities organized in the United States".
2. Renewal Applications, Extension Applications, and Streamlined Processing:
  1. Renewal or Extension Must be Filed Six Months Prior to License Expiration: In case where the renewal or extension application is not filed six months prior to the expiration and the FCC has not acted on such application, the licensees will need to file a request for special temporary authority (STA) at least 30 days prior to the expiration of the license to continue to operate the cable past the expiration of the license, unless the FCC has granted a waiver of the rules to allow continued operation before then.
  2. Renewal or Extension Streamlined Processing Procedures: The FCC modifies the criteria to allow for streamlined processing if the only reportable foreign ownership has previously been reviewed by the FCC and the Committee (Team Telecom). The FCC will place a renewal or extension application on streamlined Accepted for Filing public notice and grant such application within forty-five (45) days after release of the public notice certain criteria have been met.
3. Requirements to File a Modification Application
  1. New Landing Point or New Licensee: The addition of a new landing point or a new licensee is a major change to a cable landing license that requires an application and the FCC approval before the change takes place. The FCC required a full application for these types of changes to a cable system.
  2. Removal of a Licensee or Landing Point, or Change in a National Security Mitigation Condition: The FCC requires the licensee(s) to file a notification with the FCC within 30 days of the change. Similar to a pro forma transaction notification, the FCC will place the notification of the change to the cable landing license on public notice.
  3. Adding a Segment Connecting Two Commission-Licensed Cables: The FCC adopts a pre-action notification requirement when two Commission-licensed cables [propose to] interconnect in waters beyond the U.S. territorial waters. The notification must be filed 90 days prior to construction of the proposed connection.
  4. New Connection Between Two Foreign Landing Points: The FCC agrees that if the new segment and landing point only connects two (or more) foreign points and the connection cannot be used to connect directly or indirectly with the United States, the segment does not need to be licensed by the FCC. But the FCC requires the licensee(s) to file a notification with the Commission at least 90 days before construction of the proposed connection.
4. New Requirements for Assignments and Transfer of Control Applications: The FCC adopts the proposal to require that an applicant seeking to assign or transfer control of a cable landing license must include the percentage of voting and ownership interests being assigned or transferred, including in the U.S. portion of the cable system, which includes all U.S. cable landing station(s).
5. Pro Forma Assignment and Transfer of Control Post-Transaction Notifications: The FCC adopts the proposal to have a separate rule section regarding notification of pro forma assignments and transfers of control. Under the rule, a licensee will continue to be required to file a pro forma notification no later than thirty (30) days after the assignment or transfer of control is consummated.
6. Requests for Special Temporary Authority: The FCC adopts the proposal to create a rule specific to requests for special temporary authority (STA) for submarine cables rather than continuing to rely on the STA rule for temporary or emergency service by international carriers.
7. Foreign Carrier Affiliation Notifications: The FCC requires that licensees must include voting interests in a notification of a foreign carrier affiliation, in addition to the equity interests, and a diagram of individuals or entities with a 10% or greater direct or indirect ownership in the licensee.

Further Notice of Proposed Rulemaking

The FNPR seeks comments on:

Propose to presumptively exclude a category of applications from referral to the Executive Branch agencies if certain standards are met to streamline and improve timeliness of application review;
Seek comment on further measures to streamline approval of domestic cables;
Propose increased transparency measures for submarine cable systems by requiring SLTE owners and operators to become licensees on a cable landing license and seek comment on a regulatory framework for SLTE owners and operators;
Propose new certifications and routine conditions related to foreign adversaries, including to prohibit use of equipment or services from entities that owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary, to further protect submarine cables from national security risks;
Seek comment on requiring existing licensees to remove from their submarine cable system all covered equipment or services, within a specified timeframe; and
Seek comment on how the Commission can incentivize and encourage the adoption and the use of trusted technologies produced and provided by the United States and its foreign allies under its legal authority.

FCC Statements

Following the vote and adoption on August 7, 2025, the FCC published a press release.

The Report and Order portion of the item adopts a range of measures to protect submarine cables against foreign adversaries. The rules apply a presumption of denial for certain foreign adversary controlled license applicants, limiting capacity leasing agreements to such entities, prohibiting the use of “covered” equipment, establishing cybersecurity and physical security requirements, and more—all while streamlining the Commission’s license review procedures.

The Further Notice of Proposed Rulemaking proposes and seeks comment on various additional measures to protect submarine cable security against foreign adversary equipment and services, while incentivizing the use of American submarine cable repair and maintenance ships and the use of trusted technology abroad. Notably, the FCC also seeks comment on a proposal to presumptively entirely exempt from Team Telecom review license applications that meet a high-level security standard.

"We not only want to unleash the deployment of new undersea cables—we want to make sure those cables are secure. In recent years, we have seen submarine cable infrastructure threatened by foreign adversaries, like China. To mitigate those threats, this item proposes and seeks comment on
various measures to protect submarine cable security against foreign adversary equipment and services. It also incentivizes the use of American submarine cable repair and maintenance ships and the use of trusted technology abroad." the FCC Chairman Brendan Carr said in a statement.

"Subsea cables are uniquely vulnerable to espionage, sabotage, and surveillance. Our global adversaries understand this. Chinese state-owned and
private companies continue to invest aggressively in subsea cable infrastructure, while the Russian military has demonstrated advanced capabilities to map and monitor undersea cable routes. These trends cannot be ignored, which is why today’s Order is so important", commented by the Commissioner Olivia Trusty in a statement, "the reforms in this Order advance the Commission’s broader effort to eliminate foreign adversary influence from our telecommunications networks and ensure that global communications infrastructure remains competitive, resilient, and secure".

Next Step

The adopted Report and Order and Further Notice of Proposed Rulemaking (FNPRM) will be published in the Federal Register, with a 30-day comment period and a 60-day reply comment, both after the date of publication in the Federal Register.

Updates

On 10/27/2025,the new submarine cable landing license ruling, Review of Submarine Cable Landing License Rules and Procedures To Assess Evolving National Security, Law Enforcement, Foreign Policy, and Trade Policy Risks, was published on the Federal Register, as final rule. These rules are effective November 26, 2025.

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