A Journal of People report
Major efforts are going on in the global internet market. Google subsidiary agrees to pursue internet “diversification” in Asia to block China access to U.S. market. The global internet continues to disintegrate into regional internets.
The Wall Street Journal reported on April 8, 2020:
U.S. officials granted Google permission to turn on a high-speed internet link to Taiwan but not to the Chinese territory of Hong Kong, citing national-security concerns in a ruling that underscores fraying ties between Washington and Beijing.
Other media reports said on April 9, 2020:
Google subsidiary agrees to pursue internet ‘diversification’ in Asia to block China access to U.S. market.
On April 8, 2020, the U.S. The Federal Communications Commission (FCC) authorized, GU Holdings, a Google subsidiary to open a submarine fiber optic link between the U.S. and Taiwan, while continuing to block the company’s expansion of the cable to Hong Kong.
The cable, operated by Pacific Light Data Communication, has faced years of delays over its ties to the Chinese mainland. The Trump administration, through the Team Telecom review process, has placed an exacting magnifying glass on the deal structure and its operating processes, arguing that a direct link between Hong Kong and the U.S. would pose grave risks to the security of America’s internet infrastructure.
The original goal of the cable was to connect the U.S. to Taiwan, Hong Kong and the Philippines, offering Google and other tech companies like Facebook the ability to move large quantities of information from their data centers domestically to the fast-growing Asia-Pacific region. That sort of bandwidth is even more acutely needed today in the context of the global Covid-19 pandemic and the rapid increase in work-from-home activities that are driving record internet usage.
When Dr Peng Telecom & Media Group bought a stake in the cable’s operating company in late 2017, concerns intensified among DC national security professionals that the cable could come under the sway of Beijing’s influence.
Those delays have proven costly for GU Holdings, which has argued in filings with the FCC that the project was increasingly non-viable given the extensive review process.
With today’s announcement, Google’s subsidiary has agreed to an extensive set of national security constraints on the project, including extensive disclosure of the network’s operating processes to the U.S. federal government and using security-cleared personnel in operating the cable. The company’s application for a connection to Hong Kong remains pending before the FCC.
In the government’s filing, the Team Telecom agencies, which include Justice, Homeland Security, and Defense, said that they “believe that in the current national security environment, there is a significant risk that the grant of a direct cable connection between the United States and Hong Kong would seriously jeopardize the national security and law enforcement interests of the United States.”
As part of the national security agreement, “Google will pursue diversification of interconnection points in Asia, including but not limited to Indonesia, Philippines, Thailand, and Vietnam. This diversification will include pursuing the establishment of network facilities that allow delivery of traffic on Google’s network as close as practicable to the traffic’s ultimate destination.” In other words, internet traffic will not be relayed through China or Hong Kong, which is a special administrative region of China.
A Google spokesperson said, “We recognize the importance of Google services at a time like this and are committed to adding capacity to stay ahead of demand. Our dedicated global network deployment and operations team is continually increasing capacity to meet the needs of our users, and that includes our subsea cable system. We are pleased to see the FCC grant approval for us to begin using this cable to connect the US to Taiwan.”
The agreement will ultimately allow Google and other large tech companies to advance their interests in this important region, but it does underscore the increasing disintegration of the vision of one, global internet. Data sovereignty rules in Europe, India, China, and Russia are forcing tech companies to offer specialized cloud services tailored to each region’s privacy and censorship interests rather than offering one open and free infrastructure for global internet users.
According to GU Holdings’ filing, the U.S.-Taiwan segment of the cable is operationally ready, and will presumably start handling traffic in relatively short order.
The FCC on Wednesday approved Alphabet Inc unit Google’s request to use part of an U.S.-Asia undersea telecommunications cable after the company warned it would face significantly higher prices to carry traffic by other means.
Google agreed to operate a portion of the 8,000-mile Pacific Light Cable Network System between the United States and Taiwan, but not Hong Kong. Google and Facebook Inc helped pay for construction of the now completed telecommunications link but U.S. regulators have blocked its use.
The U.S. Justice Department earlier told the FCC in a petition it supported Google’s revised request. The agency said U.S. agencies believe “there is a significant risk that the grant of a direct cable connection between the U.S. and Hong Kong would seriously jeopardize the national security and law enforcement interests of the United States.”
Hong Kong is a special administrative region of China, whose relations with the United States have soured over the deadly coronavirus pandemic, which originated in Wuhan, trade disputes and security concerns.
In a statement, Google thanked the FCC for approving its request and added, “dedicated global network deployment and operations team is continually increasing capacity to meet the needs of our users, and that includes our subsea cable system.”
The FCC is allowing Google to operate the segment for the next six months, pending a final disposition of the license application.
Google told regulators earlier this year it has “an immediate need to meet internal demand for capacity between the U.S. and Taiwan, in particular to connect Google’s Taiwan data center to Google data centers in the U.S. and to serve users throughout the Asia-Pacific region.”
It added that without that “capacity, the value of large, recent capital investments Google has made in the United States is significantly reduced.”
The U.S. Justice Department said without temporary authority, “Google would likely have to seek alternative capacity at significantly higher prices.”
Google has also agreed to “pursue diversification of interconnection points in Asia,” as well as to establish network facilities that deliver traffic “as close as practicable” to its ultimate destination, the department added.
The U.S. has expressed concerns about China’s role in handling network traffic and potential for espionage. Around 300 subsea cables form the backbone of the internet by carrying 99% of the world’s data traffic.
A Facebook affiliate sought FCC approval to use a portion of the cable connecting the Philippines to the United States to handle traffic.
Facebook said on Wednesday it is “navigating through all the appropriate channels on licensing and permitting.”
Journal of People 