tech
Iran demands Big Tech pay fees for undersea Internet cables in Strait of Hormuz
Iran's claim over subsea chokepoint pushes US tech companies to overland fiber.
TL;DR
- Iran claims it will impose fees on US tech companies for using undersea Internet cables that traverse the Strait of Hormuz.
- The Iranian military and state-linked media have proposed charging license fees for cable usage and maintenance, naming Meta, Google, Amazon, and Microsoft.
- The Strait of Hormuz is a critical chokepoint for undersea cables serving the Gulf region, though much of Europe-Asia traffic uses Red Sea cables.
- Ongoing conflicts have already led to the suspension of cable repairs and new projects in the region, with repair ships avoiding the Strait of Hormuz.
- Tech companies and Gulf countries are exploring overland routes as alternatives to bypass the Strait of Hormuz's digital chokepoint.
- Damage to undersea cables typically occurs from commercial ships, but deliberate sabotage by Iran is also a possibility, though uncertain.
- Delays in cable repairs due to the conflict pose a significant threat to the infrastructure.
- The high cost of deploying transoceanic cables makes the potential fees a significant concern for tech companies.