The report details the application of ex-ante economic regulation to subsea infrastructure, expanding the contexts in which these cables have been discussed in recent months
BEREC has published its draft report on domestic subsea cables, focusing primarily on economic regulation
On 5 June 2025, the Body of European Regulators for Electronic Communications (BEREC) published its draft report on submarine cable connectivity in Europe. The report limits its scope to domestic subsea cable deployments in EU Member States, foregoing – at least temporarily – analysis of the international subsea cable markets, which have drawn increasing attention from regulators and governments over the past year. Beyond an overview of the ecosystem of subsea cables in operation and those planned for deployment throughout the bloc, BEREC also surveys the application of ex-ante economic regulation to subsea cable infrastructure, adding further context to debates that have so far been largely dominated by resilience and security matters. Stakeholders have until 11 July to provide feedback on the report’s contents.
Domestic connections across the EU are ageing and will likely need public funding for their restoration or replacement
The report is informed by data from 12 of the 15 BEREC countries with subsea cables connecting to national landing stations, totalling 366 segments of domestic cable. BEREC noted its interest in finding that some of these segments measure under 20km and are within range of microwave links but were built as a result of needing the superior capacity and resilience of a subsea system. Similarly, the report highlighted the use of subsea cables as an alternative to terrestrial fibre where there is difficult topology, such as coastal cities in the Norwegian fjords. According to the information provided by European regulators, approximately 42% of these cables have been in operation for more than 25 years, including 14% that have been in operation for more than 35 years, exceeding the commonly engineered lifespan of subsea systems (which is around 25 years). While BEREC did not collect data on fibre pairs, it did note that the increased capacity of more modern systems, along with the wear and tear of long-term operation, has also become a consideration when replacing older cables. Given the often limited business case for extending subsea connectivity to smaller, island communities within Member States, it is unsurprising that nearly 20% of cables included in the report received public funding. BEREC notes that it expects public funding programmes, such as the Connecting Europe Facility, may be required to replace ageing systems throughout the bloc, in line with EC expectations as well.
Subsea infrastructure has been subject to unique obligations as well as grouped in with terrestrial leased lines
Regarding economic regulation of subsea cables, BEREC found that six countries (Croatia, France, Greece, Iceland, Portugal and Spain) have carried out market analyses that have included subsea cables. Of those countries, only four (Croatia, Greece, Iceland and Portugal) continue to regulate the market. According to the regulators in those countries, only 138 out of 160 subsea cables in operation are regulated. Only ANACOM in Portugal has imposed remedies specific to subsea cables, finding that MEO and Fibroglobal – both owned by Altice as of 2022 – have significant market power (SMP). The three other countries all include subsea cables within their analyses of terrestrial leased lines and impose remedies in line with the rest of those markets. While the small number of examples included in the report would suggest a trend towards deregulation for subsea infrastructure, BEREC nonetheless notes that it remains important for regulators to have access to specific data on pricing and access terms for subsea cable capacity to continue to ensure effective competition, which should include data from operators as well as tech firms and cable suppliers.
Resilience, both in the context of political instability and ageing infrastructure, is still top of mind
While the bulk of the report covers ex-ante economic regulation, BEREC also identifies some emerging trends and challenges in domestic subsea cable markets. In line with the focus of the EC, the report briefly points out the importance of resilience in subsea infrastructure, claiming the political instability of recent years has increased the risk of cable sabotage. BEREC suggests that cable security should be addressed at the EU level, referencing the EU Action Plan on Cable Security, and highlights the potential advances in resilience through the deployment of Science Monitoring And Reliable Telecommunications (SMART) cables. BEREC also further develops its concerns with the high investment needed to replace or restore ageing connections to often sparsely populated communities for which there is limited business case. The report notes that market analysis will likely be required in the future as ageing routes are replaced to ensure that competition is maintained. Moving forward, BEREC also lists its plans to collaborate with its international counterparts, including REGULATEL in LATAM, EMERG in the Mediterranean and the ITU.