FCC Proposes Tighter Rules for Undersea Cables, Potentially Speeding Approvals for Meta and Google

The Federal Communications Commission said it plans to toughen oversight of submarine communications cables that carry essentially all international internet traffic, proposing rules that would make it harder for Chinese companies to provide equipment and would create a faster approval pathway for “trusted” U.S. technology firms. In the FCC’s framing, the change is designed to reduce risks from foreign adversaries, particularly China, as global cable capacity expands to support cloud computing, AI workloads, and rising data demand.

Among the most consequential elements, Reuters reports the FCC would require licenses for operators of submarine line terminal equipment, or SLTE, the gear that links an undersea cable to U.S. terrestrial networks. The FCC also outlined a “fast-track” process for operators that agree to guard against espionage and other security incidents and that would strictly monitor compliance with national security and data security obligations. Operators in the fast-track would also need to agree not to use foreign equipment that could pose security risks.

The FCC’s proposal lands against a backdrop of growing attention to the physical and cyber security of undersea infrastructure. The agency highlighted that submarine cables carry roughly 99% of international internet traffic, and Reuters notes U.S. officials have been concerned for more than a year about a network of more than 400 subsea cables that handle nearly all international traffic. Separately, U.S. Senate Foreign Relations Committee chair Jim Risch urged efforts to improve resiliency and to publicly call out sabotage when possible, according to Reuters.

The possible upside for major U.S. internet companies comes from regulatory timing. Reuters said companies such as Meta, the parent of Facebook, and Alphabet’s Google are likely to benefit from the process that could allow quicker approval to operate additional undersea cable systems to handle growing internet traffic. In Reuters’ description, the fast-track would reward operators that can meet security and compliance standards, which could reduce delays tied to government interagency review.

The FCC’s tightening approach also builds on prior restrictions on foreign vendors. Reuters reported that last year the FCC barred the use of equipment or services in undersea cable facilities from companies on its national-security threat list, naming Huawei, ZTE, China Telecom, and China Mobile. Under the new rules, Reuters said the ban is expected to broaden, potentially extending beyond the listed firms to cover equipment from China or from any other foreign adversary in submarine cable systems.

In a separate FCC action adopted on Aug. 7, 2025, the commission said it adopted new rules to streamline submarine cable licensing and accelerate cable buildout while emphasizing protection from foreign adversary threats. That FCC release described steps including a presumption of denial for certain foreign-adversary applicants, limits on capacity leasing arrangements involving those entities, prohibitions on “covered” equipment, and cybersecurity and physical security requirements, alongside efforts to streamline license review procedures.

Still, key details remain uncertain until the FCC releases the full text of the proposal and completes its rulemaking process. For example, it is not yet clear from the Reuters account exactly what compliance evidence and security controls would qualify for fast-track treatment, which specific operators would be eligible, and how broad the expanded foreign-equipment restrictions would be in practice. Reuters also does not indicate whether Meta or Google have publicly commented on the FCC’s plan, leaving the near-term market impact more speculative than definitive.

What to watch next is the FCC’s next procedural steps, including the release of formal proposal language, comment deadlines, and any final vote or order that could follow. For large undersea cable operators and the U.S. internet and AI ecosystem that depends on additional capacity, the practical question is whether the new licensing structure reduces time-to-approval without increasing project execution risk or cost burdens.