The FCC’s Enforcement Bureau resolved two investigations on Tuesday into the América Móvil Submarine Cable System, which connects the United States to two additional cable landing stations located in Colombia and Costa Rica, respectively, without prior permission. LATAM Telecommunications and Puerto Rico Telephone Company admitted the violations and will each pay a $1 million civil penalty and enter into a compliance plan.
“Undersea cables keep us globally connected and are an essential part of the digital economy. But they can pose real security risks if the FCC and its national security partners aren’t properly given the chance to review where new cables may be installed,” said FCC Chairwoman Jessica Rosenworcel. “Across the board the agency has been focused on network security, and careful oversight of undersea cables is a critical part of this effort.”
An undersea cable licensee must obtain prior authorization from the Commission and Team Telecom (the Committee for the Assessment of Foreign Participation in the U. S. Telecommunications Services Sector) before connecting and operating new international subsea cable landing stations. Not doing so circumvents Team Telecom’s ability to conduct a review of national security concerns as required by federal law and regulations.
“International submarine cables that connect the United States to other countries are a key piece of technology that facilitates the voluminous transfer and use of sensitive personal and U.S. government information,” said FCC Enforcement Chief Loyaan Egal. “We will also work closely with our national security partners and the Commission’s Office of International Affairs to identify and address unauthorized and non-notified transactions that implicate FCC licenses and U.S. national security interests.”
“Team Telecom is designed to review and address national security threats to our critical telecommunications infrastructure,” said Assistant Attorney General Matthew Olsen of the DoJ National Security Division. “When that process is bypassed, it puts the American people, their communications, and their data at risk. Today’s enforcement action makes clear that the Department of Justice, as Chair of Team Telecom, will continue to work closely with the FCC to ensure that applicants and licensees play by the rules.”
The FCC investigation found that construction began on a cable landing station in Isla San Andrés, Colombia, in March 2020, which went into operation in September 2021, and a cable landing station in Puerto Limón, Costa Rica, in May 2021, which began operation in November 2022. They both connected to the América Móvil Submarine Cable System.
Neither company sought FCC authorization until 2023, thus “evading” what the agency says are vital national security reviews and assessments. The Commission and Team Telecom consider those when reviewing new undersea cable landing license applications, as well as requests to modify existing licenses.
Reflecting the increased emphasis on data security issues in the national security space, the financial penalties associated with the Consent Decrees are significantly larger than prior enforcement actions for undersea cable rule violations, according to the FCC. In addition to critical infrastructure voice and data services, undersea cables also facilitate emerging technologies that are key to the digital economy such as AI, machine learning, and cloud computing. The Enforcement Bureau will continue to prioritize investigations that concern U.S. national security interests involving telecommunications and information and communications technology networks.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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