Page 93 - SAMENA Trends - August-September 2025
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REGULATORY & POLICY UPDATES  SAMENA TRENDS

        FCC Tightens Rules on Foreign Firms Building Undersea Cables, Citing Security


        The Federal Communications Commission has adopted new rules
        to make it more difficult for foreign firms to apply for licensing to
        build out submarine cables, citing the need to protect the continued
        construction of critical undersea cables that underpin the internet
        and transcontinental communications. The rules would require the
        FCC  to presumptively  deny  “certain  foreign  adversary-controlled
        license applicants” from obtaining licenses needed to operate in
        U.S.-controlled  waters.  It  would  also  restrict  undersea  capacity
        leasing agreements, ban the use of unspecified covered equipment
        and establish a range of physical and cybersecurity requirements
        on those same firms. The FCC said that as the U.S. seeks to become
        “the unrivaled world leader in critical and emerging technologies
        and  secure  AI dominance,”  the  cables  responsible  for powering   reported  submarine  cable incidents,  but cybersecurity threats
        that  data  explosion  must  be  protected  from acts  of foreign   and cable-cutting techniques like anchor dragging are also rising.
        sabotage. According to figures provided by the FCC, there are 90   Commissioner Anna Gomez noted that the FCC had not updated its
        cable systems already licensed by the agency. The FCC expects   rules around submarine cables in decades, despite their evolution
        those numbers to grow significantly in coming years as businesses   into the backbone of global internet communications. “As national
        and governments continue to build out additional infrastructure.   security risks increased and our Government took steps large and
        In a statement,  Chair Brendan  Carr said  the  FCC’s  order was   small to protect our networks from foreign adversaries on multiple
        meant  to “facilitate,  not  frustrate”  this  expansion  of submarine   fronts, the Commission long coordinated with key federal agencies
        cable infrastructure, while making it harder for foreign nations to   to protect submarine cables,” Gomez said. One key challenge facing
        potentially gain influence or access to that infrastructure through   policymakers  as  this  expansion  continues  will  be  putting  hard
        an affiliate third-party company. “We not only want to unleash the   security  restrictions  in  place  without  slowing  things  down. “The
        deployment of new undersea cables — we want to make sure those   hard work of this item really was in finding the balance between, on
        cables are secure. In recent years, we have seen submarine cable   the one hand, necessary security measures to protect critical U.S.
        infrastructure threatened by foreign adversaries, like China,” Carr   communications infrastructure against foreign adversary threats
        said.  An assessment  by Recorded  Future’s  Insikt  Group in  July   and, on the  other hand, clarifying and  streamlining  processes
        found that the growing submarine cable industry is facing a threat   to provide  economic certainty  that  will  facilitate  investment
        landscape that has “very likely escalated” over the past 18 months.   and  minimizing  regulatory burdens  by removing  duplicative  or
        Accidents continue to be the primary means of damage in publicly   unnecessary requirements where possible,” Gomez said.




        NCC Approves MTN Nigeria Spectrum Deal with T2 Mobile


        There’s been an interesting new development in the ongoing sto-  2025  strategy, which focuses on expanding  broadband  access
        ry of the repositioning of Nigerian operator 9mobile as T2 Mobile.   and improving cost-efficiency through partnerships, infrastructure
        It involves a spectrum deal with one of the country’s leading op-  sharing  and  environmentally  sustainable  practices.  Indeed,  Karl
        erators, MTN Nigeria. Specifically, MTN Nigeria has received ap-  Toriola, CEO, MTN Nigeria is widely quoted as saying: “By lever-
        proval from regulator the Nigerian Communications Commission   aging additional spectrum resources, we are enhancing network
        (NCC) to lease frequency spectrum from T2 Mobile Limited. Under   capacity in a cost-efficient and environmentally sustainable way.”
        the agreement, effective 1 October 2025, MTN Nigeria will lease   He also argues that MTN is fostering a more collaborative telecom
        5MHz FDD in the 900MHz band and 15MHz FDD in the 1800MHz   ecosystem, not just by its a national roaming agreement with T2
        band from T2 Mobile for an initial period of three years. Accord-  but also by onboarding mobile virtual network operators (MVNOs).
        ing to MTN, the lease arrangement is a key enabler of its recent-  News service Techpoint Africa says that as part of this spectrum
        ly announced national roaming agreement with T2, ensuring the   realignment, MTN will not be renewing its ongoing one-year lease
        operator  can  manage  increased  network  traffic  from  T2’s  cus-  with service provider Natcom Development & Investment Limited
        tomer base on its infrastructure. The initiative is said to highlight   (NTEL), which is set to expire on 29 November. That lease current-
        a broader industry push towards collaboration, spectrum sharing,   ly covers 5MHz in the 900MHz band and 10MHz in the 1800MHz
        and  expanding  broadband  access.  It’s  also  being  described  as   band across 17 states. This seems to be yet another piece of pos-
        aimed at boosting network capacity and advancing digital inclu-  itive news for T2 Mobile, whose overall market share, while small,
        sion across the country. Of course, for MTN the extra capacity will   seems to be stabilizing. However, as our recent overview indicates,
        support growth in demand for data and voice services, but it could   the company may still have a long way to go after a turbulent few
        also be good for the environment. MTN Nigeria has described the   years.
        new  lease  and  roaming  agreement  as  aligned  with  its  Ambition

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