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Uncovering Foreign Ownership and Influence Risks in Undersea Cables

July 1, 2024

Case Study

Challenge

Department of Defense (DoD) organizations needed to understand risk-assessed companies active in the undersea cable industry and how it would impact the Information and Communications Technology (ICT) industry associated with the DoD. While DoD equities are naturally exposed to undersea cable risks, it is important for the DoD to reexamine digital security measures for critical data transmissions to reduce vulnerability of compromise and increase security.

Solution

Exiger screened and risk-assessed approximately 2,000 entities spanning 60 countries. Notable risks include:

Risk 1: One of the major suppliers dominating the global supply of undersea cables is China-based HMN Technologies Co. Ltd., a former subsidiary of Huawei and is currently subject to U.S. export restrictions.
Risk 2: Foreign ownership and co-location of Chinese-owned cables with other cables could potentially enable China to intercept or interfere with data transmissions, underscoring the need for vigilant security measures.
Risk 3: Other key companies operating in the undersea cable space are exposed to Chinese suppliers.

Impact

Exiger’s innovative solutions uncovered foreign influence and ownership of undersea cables, and revealed potential vulnerabilities in equipment, networks, and landing stations that could affect data transmission and storage. These types of vulnerabilities have prompted the DoD to reassess their digital security measures for critical data transmissions, acknowledging that DoD equities are inherently exposed to undersea cable risks. The Illumination and continuous monitoring of physical and digital supply chain threats, made possible by Exiger’s products, is a critical component of national security and maintaining a secure and reliable digital infrastructure.

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Perspectives