FCC Takes Action Over America Movil for Unlawful Undersea Cable Connections

The Federal Communications Commission (FCC) recently concluded two investigations into the America Movil Submarine Cable System, which links the United States to Colombia and Costa Rica. The investigations revealed that these undersea cable connections were established without the necessary approvals from the FCC or the U.S. government committee known as “Team Telecom.” This lack of authorization bypassed a critical national security review, leading to significant repercussions for the companies involved.

The FCC discovered that LATAM Telecommunications and Puerto Rico Telephone Company, both responsible for the connections, had violated regulatory requirements by not seeking prior approval. As a result, each company has agreed to pay a $1 million civil penalty and has committed to a compliance plan to prevent future violations. These penalties are significantly higher than previous fines for similar infractions, highlighting the FCC’s heightened focus on data security in national security contexts.

Undersea cables are a critical component of the global digital infrastructure, carrying 99% of the world’s data traffic. The U.S. government has increasingly scrutinized these connections, especially those involving countries like China, due to potential security risks. FCC Chairwoman Jessica Rosenworcel emphasized the importance of ensuring these cables are subject to rigorous review processes to mitigate any security threats.

The unauthorized activities began with the construction of a cable landing station in Isla San Andres, Colombia, in March 2020. This station became operational in September 2021. Similarly, another station in Puerto Limon, Costa Rica, started operations in November 2022. Despite these connections being active, the companies did not seek FCC authorization until 2023, well after the facilities had become operational.

In 2013, the FCC granted authorization to Puerto Rico Telephone and LATAM for the America Movil undersea high-capacity fiber-optic cable system, which connects the U.S. to Central and South America. However, this authorization did not cover the latest connections to Colombia and Costa Rica. The FCC clarified that America Movil itself was not accused of any wrongdoing in this matter.

The penalties imposed reflect the FCC’s increased emphasis on data security issues within the national security sphere. The unauthorized establishment of these connections without proper review underscores the potential vulnerabilities in the global data infrastructure. By enforcing stringent penalties, the FCC aims to ensure compliance and protect the integrity of the digital economy.

The U.S. government’s scrutiny of undersea cables is part of a broader strategy to secure critical infrastructure against potential threats. Given that undersea cables are essential for global connectivity, unauthorized connections pose significant risks. Ensuring that these cables are subject to rigorous review processes is crucial for maintaining both national and international data security.

Moving forward, the compliance plans agreed upon by LATAM Telecommunications and Puerto Rico Telephone Company will be closely monitored. These plans are designed to ensure that any future connections are established with full regulatory approval, thereby preventing similar violations. The FCC’s actions serve as a reminder to other companies in the sector about the importance of adhering to regulatory requirements.