US agency settles probes into America Movil undersea cable system (updated)

America Movil SAB de CV

14/05/2024 19:57

(Adds comments from FCC in paragraphs 3, 6-8, no comments from
companies in 5, and background in 4 and 8)
    By David Shepardson
       WASHINGTON, May 14 (Reuters) - The Federal
Communications Commission (FCC) said on Tuesday it has resolved
two investigations into the America Movil Submarine Cable System
that connects the United States to Colombia and Costa Rica.
    The commission said the undersea cable connections were made
 without the approval of the commission or a U.S. government
committee known as "Team Telecom," which had prevented a
required national security concern review. 
    The FCC said the two companies responsible, LATAM
Telecommunications and Puerto Rico Telephone Company  VZTPR.UL ,
will each pay a $1 million civil penalty, after they admitted to
the violations and agreed to enter into a compliance plan.
    The U.S. government in recent years has been scrutinizing
undersea cable connections, especially involving China. Around
300 undersea cables form the backbone of the internet, carrying
99% of the world's data traffic. 
    Puerto Rico Telephone Company, which does business as Claro
Puerto Rico, declined to comment. LATAM Telecommunications did
not immediately respond to a request for comment.    
    "Undersea cables keep us globally connected and are
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.
    The FCC said construction began on a cable landing station
in Isla San Andres, Colombia, in March 2020, that became
operational in September 2021. A cable landing station in Puerto
Limon, Costa Rica, began operation in November 2022, with both
connecting to the America Movil Submarine Cable System, but
neither company sought FCC authorization until 2023, it added.
    The FCC had granted Puerto Rico Telephone and LATAM in 2013
authorization for the America Movil undersea high-capacity
fiber-optic cable system connecting the United States to Central
and South America but it had not authorized the latest
connections. The FCC did not accuse America Movil  AMXB.MX  of
any wrongdoing.
    The FCC said the penalties were much larger than prior
actions on undersea cables "reflecting the increased emphasis on
data security issues in the national security sphere."

 (Reporting by David Shepardson; Editing by Franklin Paul and
Sandra Maler)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))