FCC Adopts New Submarine Cable Licensing And National Security Requirements

The Federal Communications Commission (“FCC”) adopted a Report and Order and Further Notice of Proposed Rulemaking (FCC 26-42) to further modernize its submarine cable regulatory framework. The FCC initiated the proceeding in November 2024, and the latest reforms build on its 2025 Order and FNPRM.

The Second Report and Order (“Order”) adopts three key changes to the FCC’s submarine cable licensing rules. Specifically, it establishes a new licensing framework for submarine line terminal equipment (“SLTE”); adopts additional national security-related obligations; and creates a streamlined review process for qualifying lower-risk applicants.

1. New licensing framework for SLTE owners and operators

• Establishes a mandatory licensing requirement for entities that own or operate SLTE on submarine cables landing in the United States, based on the FCC’s conclusion that such entities are a fundamental and core component of a submarine cable system.
• Implements a blanket licensing approach under which qualifying SLTE owners and operators would automatically receive a cable landing license to reduce administrative burdens.
• Excludes from blanket license eligibility any entities that meet foreign adversary or other presumptive disqualifying criteria.
• Imposes routine conditions and reporting obligations on SLTE licensees, including cybersecurity, physical security, and ongoing reporting requirements.

2. Expanded national security conditions

• Requires compliance with strengthened national security-related certification and operational conditions, including prohibitions on certain equipment and service providers tied to foreign adversaries.
• Expands reporting and disclosure obligations, including requirements related to foreign adversary involvement and involvement with Covered List entities.
• Enhances interagency coordination by facilitating information sharing across federal national security stakeholders.

3. Streamlined application review process

• Establishes a framework under which certain submarine cable landing license applications would be presumptively exempt from Team Telecom referral if specified criteria are met.
• Defines detailed national security standards—including ownership, governance, and operational safeguards—that applicants must meet to qualify for streamlined review.

The Second Further Notice of Proposed Rulemaking (“FNPRM”) seeks comment on routine conditions that could improve the FCC’s oversight of submarine cable landing licensees, including SLTE owners and operators. The FCC deferred action on the remaining proposals from its 2025 FNPRM that are not addressed in this proceeding.

Key takeaways for industry

• Existing submarine cable operators can expect expanded compliance obligations, particularly with respect to SLTE, and enhanced reporting, certification, and vendor diligence requirements.
• Prospective applicants may benefit from faster and more predictable application processing if they satisfy the FCC’s new streamlined review criteria.
• Companies should evaluate whether they own or operate SLTE that may be subject to the new licensing framework and assess the impact of the FCC’s expanded national security requirements on ownership structures, vendor relationships, and compliance programs.
• The Second Order becomes effective 30 days after publication in the Federal Register, except for rules requiring approval under the Paperwork Reduction Act.
• Comments on the FNPRM are due 30 days after publication in the Federal Register, and reply comments are due 60 days after publication. Those dates have not yet been announced.