Resolution of FCC Investigation into Unauthorized Undersea Cable Operations
Latam Telecommunications and Puerto Rico Telephone Co., operating under the brand names Claro and Claro Puerto Rico, have each agreed to pay $1 million to settle a Federal Communications Commission (FCC) investigation. The probe concerned the unauthorized establishment of two undersea cable landing stations that are part of the América Móvil Submarine Cable System, connecting the U.S. with Colombia and Costa Rica.
The investigation revealed that the companies initiated construction and operation of landing stations in Isla San Andrés, Colombia in March 2020, and in Puerto Limón, Costa Rica in May 2021, without securing the necessary U.S. security reviews or FCC approvals. This action was required to undergo scrutiny by the interagency security committee, informally known as Team Telecom, which assesses foreign transactions for national security risks.
The FCC highlighted that undersea cables, critical for global connectivity and the digital economy, pose significant security risks if not properly monitored. The consent decrees, which finalize the agency’s investigation, include an admission of these regulatory violations by both companies. The decrees mandate compliance plans to prevent future unauthorized activities.
This resolution underscores the FCC’s heightened focus on network security, especially the oversight of international submarine cables crucial for transferring sensitive personal and governmental information. The FCC, along with the Department of Justice and Team Telecom, continues to emphasize the importance of adhering to federal laws and regulations to safeguard national security.
Companies involved in similar telecommunications projects are advised to ensure full compliance with all regulatory requirements, including obtaining proper approvals and engaging in mandated security reviews, to avoid legal and financial repercussions.
Contact the attorney assigned to your account or, in the alternative, Linda McReynolds at lgm@commlawgroup.com, should you have questions regarding the matters addressed in this advisory.
