Google and other tech companies are looking at other possibilities to Hong Kong as a global tech hub after the US is looking down on links to the territory, the Wall Street Journal reported, citing people familiar with the matter. Some industry executives are considering alternative landing spots around the region for underwater internet cables, such as Taiwan, Vietnam, the Philippines and Guam. Another option is to route more traffic through satellites instead of cables, as Amazon hopes to do with its constellation of low-earth-orbit satellites. There is no clear best path forward yet, and US regulators have been loath to provide guidance, according to people involved in the discussions.
Google and Facebook last week asked if they could use a link from the Pacific Light Cable Network to connect to Taiwan and the Philippines, while leaving the Chinese portion offline. The compromise was offered after a national security panel led by the US Justice Department, called Team Telecom, delayed final approval for use of the undersea network, which is already in place. Google and Facebook helped fund the 8,000mile network, which goes from Los Angeles to Hong Kong, together with a Chinese partner. This last investor garnered negative attention from the Justice Department, which opposed the project. The Chinese partner was not included in the request to link Taiwan and the Philippines.
A Google spokesperson said the company is seeking approval for various undersea cables and will abide by the relevant agencies’ decisions. A Facebook spokesperson said the company is “navigating through all the appropriate channels on licensing and permitting.” An FCC spokesman said the telecom regulator is waiting for the other agencies to finish their review before it acts on Pacific Light’s application.
Team Telecom has approved similar cable projects in the past, including ones directly linking the US to mainland China or involving state-owned Chinese telecom operators, once it was satisfied the company responsible for its US beachhead had taken steps to prevent foreign governments from blocking or tapping traffic. If the panel gives a negative assessment, this could have an effect on other projects. A planned Hong Kong-Americas cable follows a similar route between Los Angeles and the Chinese territory and includes investment from Facebook. It remains under Team Telecom review. Another cable between Hong Kong and the US territory of Guam known as HK-G also faces uncertainty fate. Project backers including Google started building that system in 2017.
