Iran’s Ambitious Move: Demanding Fees for Undersea Internet Cables
The Iranian government is making headlines once again, this time with a bold proposal that targets the world’s largest technology companies. According to a recent report by CNN, Iran is pushing for these companies to pay for the use of underwater Internet cables that traverse the strategic Strait of Hormuz. The Iranian state-linked media has also issued vague threats, suggesting potential disruptions in traffic if these demands are not met.
Tehran’s New Strategy on Undersea Cables
Last week, lawmakers in Tehran took a significant step by discussing a plan that could have far-reaching implications. The plan focuses on undersea cables connecting Arab countries with Europe and Asia. Ebrahim Zolfaghari, an Iranian military spokesman, announced, “We will impose fees on Internet cables,” emphasizing the exclusive rights granted to Iranian companies. These companies have reportedly invested in cables crossing the Strait of Hormuz and the Persian Gulf. However, there is ambiguity about whether these cables actually pass through Iranian waters.
Challenges in Enforcing Compliance
Despite Iran’s assertive stance, enforcing compliance from global tech giants might prove challenging. Due to stringent US sanctions, these companies are unable to make direct payments to Iran, leading some to view the Iranian statements as mere posturing rather than enforceable policy. Nonetheless, state-affiliated media outlets have issued veiled threats of potential cable damage, which could significantly impact global data transmission and Internet connectivity.
Implications for Global Connectivity
Dina Esfandiary, head of the Middle East at Bloomberg Economics, suggests that these threats are part of Iran’s broader strategy to assert its influence over the Strait of Hormuz and ensure regime survival. The goal, according to Esfandiary, is to impose such a substantial cost on the global economy that countries would hesitate to threaten Iran again.
Undersea cables are crucial, carrying vast amounts of internet and financial traffic between Europe, Asia, and the Persian Gulf. Disrupting these cables could have severe consequences, affecting everything from banking systems and military communications to AI cloud infrastructure, remote working, online gaming, and streaming services.
Potential Regional and Global Consequences
CNN also interviewed Mostafa Ahmed, a senior researcher at the UAE-based Habtoor Research Center. Ahmed has published a paper examining the potential effects of a large-scale attack on underwater communications infrastructure in the Gulf. He highlights the risk posed by the Islamic Revolutionary Guard Corps (IRGC), which is equipped with combat divers, small submarines, and underwater drones. Any attack could trigger a cascading “digital catastrophe” across multiple continents.
Iran’s Persian Gulf neighbors could face severe Internet disruptions, impacting crucial oil and gas exports and the banking sector. Beyond the region, India might see significant impacts on its internet traffic, threatening its massive outsourcing industry with potential losses in the billions. Disruptions could also slow financial trade and cross-border transactions between Europe and Asia, while parts of East Africa could experience Internet outages. Additionally, if Iran’s proxies employ similar tactics in the Red Sea, the consequences could be even more severe.
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