Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesStocksEarnInstitutionAI & More
FCC tightens undersea cable security to protect AI networks from China

FCC tightens undersea cable security to protect AI networks from China

CryptopolitanCryptopolitan2025/08/08 15:30
By:By Nellius Irene

Share link:In this post: The FCC greenlights new rules to strengthen the security of subsea data cable networks. License bids from adversarial governments will also face an initial presumption of rejection until proven harmless. Anna Gomez believes the new regulations will boost critical investments.

The Federal Communications Commission has cleared new measures designed to accelerate and strengthen the security of subsea data cable networks, over concerns of rising dangers from China and other foreign actors.

FCC Chairman Brendan Carr commented,  “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.”

U.S. reinforces security and streamlines licensing 

Undersea systems are a critical communication backbone and thus high-value targets for espionage or sabotage. FCC Commissioner Olivia Trusty even cautioned, “Our global adversaries understand this,” emphasizing that these networks are uniquely exposed to espionage, sabotage, and surveillance.

Nonetheless, under the new framework , authorities will simplify the licensing process for subsea cables, impose tougher security standards, and bar involvement by foreign entities flagged as security threats.

License bids from entities linked to rival governments will also face an initial presumption of rejection, unless proven harmless to U.S. security interests. The regulations further compel enhanced cyber and physical protections for all cables making landfall in the U.S. 

The measures fit into a wider U.S. push to curb China’s influence in critical technologies. Trusty noted that China’s swift expansion in undersea infrastructure and Russia’s proven capacity to trace and chart cable networks are realities that underscore the urgency of the new regulations.

See also Palantir hits $1 billion quarter milestone thanks to AI, says $1 trillion is the goal

In its release, the commission also said that with the submarine cable market becoming increasingly competitive, U.S. connectivity should remain a top priority. It added that the new measures will help expand network capacity to serve growing internet and data requirements and help maintain U.S. dominance.

Moreover, it has put forward an NPRM inviting feedback on further protections for subsea cables, measures to boost reliance on U.S. cable service vessels, and efforts to advance “trusted technology abroad.” 

Ciena’s CTO says authorities should deploy cables in new, less-populated areas

According to Carr, undersea cables handle nearly all internet traffic worldwide and support over $10 trillion in daily financial flows, inviting more private companies to invest. He stated that private sector spending on new undersea cable projects has averaged $2 billion per year for the last ten years.

The new rules won unanimous support from the three current commissioners, with the FCC planning to gather public comments on further measures to hasten infrastructure deployment that can cost $30,000 to $50,000 per kilometer.

In a blog post, Ciena’s international CTO advised that future submarine cables should be deployed in new, less populated areas that are closer to power. However, he warned the strategy would be costly and time-consuming.

See also Apple pledges $100 billion for U.S. manufacturing after Tim Cook's meeting with Trump

Nonetheless, FCC Commissioner Anna Gomez believes the new regulations will boost critical investments needed for future developments, aside from streamlining processes related to submarine cables. 

U.S. regulations of subsea cables stretch back to the 1800s, with the FCC regulating them since 1954. So far, the commission has issued licenses for 90 systems, noting 5.3 million Gbps of available capacity in 2022 and an anticipated 6.8 million Gbps in 2024.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

"Bullish" Burry Issues Another Warning for US Stocks: If the "Magnificent Seven" Join the Drop and Bond Yields Fall, Wall Street May Face a "Bloody October"

Burry warns that the painful trading in the market may continue. He proposes a bearish "Red October" scenario: if the "Magnificent Seven" U.S. tech stocks follow semiconductor stocks in a decline, and bond yields simultaneously fall, his conviction in this scenario will become even stronger.

智通财经•2026/10/15 08:46
"Bullish" Burry Issues Another Warning for US Stocks: If the "Magnificent Seven" Join the Drop and Bond Yields Fall, Wall Street May Face a "Bloody October"

Tesla (TSLA.US) to Host Roadster Launch Event This Friday: Elon Musk Promises "Greatest Product Demo Ever," Debut of the Nine-Year-Teased "Flying Sports Car"

On the eve of the Roadster launch event, Elon Musk promised to deliver "the greatest product demonstration in history."

智通财经•2026/10/15 08:37
Tesla (TSLA.US) to Host Roadster Launch Event This Friday: Elon Musk Promises "Greatest Product Demo Ever," Debut of the Nine-Year-Teased "Flying Sports Car"

Tech Stocks Plunge, Safe-Haven U.S. Treasury Trades Return? 10-Year U.S. Treasury Yield Drops to Three-Week Low

If AI capital expenditure slows down, a sudden halt in computing power construction will severely impact the supply chain while lowering market expectations for demand in electricity, commodities, and high-end hardware. This not only leads to a correction of overvalued assets, but also undermines growth expectations and inflation premiums, ultimately benefiting bonds. This logic is highly similar to the macroeconomic landscape during the bursting of the internet bubble in 2000, when the Nasdaq collapsed and the yield on 10-year US Treasury bonds dropped from a high of 6.5% to the 4% range.

华尔街见闻•2026/10/15 08:29

BlackRock (BLK.US) Q3 Conference Call: Huge Financing Demand for AI Infrastructure, Computing Power May Become a New Asset Class

BlackRock (BLK.US) will release its third-quarter 2026 earnings before the US stock market opens on October 14, followed by a conference call.

智通财经•2026/10/15 08:19
BlackRock (BLK.US) Q3 Conference Call: Huge Financing Demand for AI Infrastructure, Computing Power May Become a New Asset Class