FCC Tightens Rules on 99% of Internet Cables as It Squeezes Chinese Equipment
Updated
Updated · Baird Maritime · Jun 25
FCC Tightens Rules on 99% of Internet Cables as It Squeezes Chinese Equipment
3 articles · Updated · Baird Maritime · Jun 25
Summary
The FCC voted to tighten oversight of submarine cables carrying 99% of international internet traffic, proposing new rules that would make it harder for Chinese firms to supply equipment to US-linked systems.
For the first time, operators of submarine line terminal equipment—the gear linking undersea cables to US terrestrial networks—would need licenses, extending scrutiny to a critical part of cable infrastructure.
Meta and Google could get faster approvals for new cable systems if they certify to strict security standards, accept ongoing monitoring and avoid foreign equipment deemed a national security risk.
The move builds on last year's FCC ban on undersea cable equipment and services from listed firms including Huawei, ZTE, China Telecom and China Mobile, and could broaden restrictions to any 'foreign adversary' supplier.
US officials have warned for more than a year that the 400-plus global subsea cable network is vulnerable to espionage by China and Russia; Beijing earlier this month demanded Washington treat Chinese companies fairly.
With new rules guarding US shores, who protects the vast deep-sea cable networks from sabotage?
Could the US-China undersea cable war disrupt global data flows and raise costs for everyone?
As the US walls off its undersea data cables, is a physical 'splinternet' now inevitable?
FCC Tightens Grip on Submarine Cables in 2026: National Security and Geopolitical Impacts
Overview
On June 25, 2026, the FCC introduced major new rules to strengthen national security by regulating submarine internet cables. These cables are essential for connecting continents and carrying huge amounts of global internet traffic. The new regulations restrict certain suppliers, shrinking the pool of eligible companies and leading to a reordering of the supply chain over time. As a result, companies not on the restricted list are expected to gain market share, while remaining suppliers could see increased pricing power and more business. This decision is set to reshape the industry with both immediate and long-term effects.