In a rapidly changing technological and geopolitical landscape, the Strait of Hormuz has gained prominence as a strategic corridor for energy transfer and global shipping. The increasing reliance on submarine fiber optic cables necessitates a reevaluation of national governance frameworks to enhance security and bolster economic and geopolitical influence.
Importance of Data Transmission Cables in the Strait of Hormuz
The speed and stability of data transmission are crucial, as a significant portion of the global data network passes through the Strait of Hormuz and Iranian waters. Submarine fiber optic cables in this region are vital for global internet connectivity, offering economic and technological benefits to Iran.
- Connection Points and Creating Companies: By 2026, key cables will connect Persian Gulf countries to Europe, India, and East Asia, including Tata Communications’ FALCON, the GBI private system, and TGN-Gulf.
- Types of Data Transmitted: Data from the Strait of Hormuz cables supports daily activities like financial transactions and VoIP, encompassing internet traffic, cloud synchronization, corporate VPNs, and international finance.
- Using Companies: Involved companies include hyperscalers (Google, Microsoft), telecom operators (Etisalat, STC), and financial institutions (Akamai) focusing on low-latency and secure transactions.
- Repair Times: Damage to submarine cables can lead to significant industry impacts, with major repair times ranging from 7 to 30 days, potentially extending to 45 days due to maritime traffic and coordination challenges.
Management of the Strait of Hormuz within the Framework of Iran’s National Laws
The Strait of Hormuz is part of Iran’s territorial waters and should not be regarded as international waters, allowing Iran to control internet cables and ships through permits and fees to ensure national interests and security. A proposed legal framework would require foreign technology companies to pay annual royalties and operate under Iran’s Ministry of Communications, with maintenance of cables managed by predominantly Iranian-owned firms, contributing to the development of domestic fiber optic infrastructure.
This study is conducted at Innovation Think Tank in 2026.
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