WANA (May 10) – The Strait of Hormuz and the Sea of Oman have always been recognized in global strategic literature as the primary arteries for energy transmission. However, in the contemporary world, this body of water hosts another valuable asset: “Data.” Deep within these waters, thousands of kilometers of fiber-optic cables transport the vital data of continents.

 

By virtue of its territorial sovereignty over this strategic bottleneck, Iran possesses the potential to monetize this position through a model of “Digital Sovereignty.”

 

This model outlines three operational and legal axes for generating revenue and exercising national authority over these infrastructures, requiring large international corporations to comply with the laws of the Islamic Republic of Iran.

 

Licensing System and Optical Infrastructure Management

The first step toward generating foreign currency revenue is the legal reorganization of international transit cable utilization. Massive cables such as “FALCON” and the “Europe-India Gateway (EIG),” which pass near coastal stations like Chabahar, carry vast volumes of global data.

 

These cables utilize DWDM (Dense Wavelength Division Multiplexing) technology to transmit multiple terabits of data simultaneously.

 

From a sovereign perspective, any company seeking to utilize this technical capacity within Iran’s territorial waters must pay an “Initial License Fee.” Since these cables are permanent infrastructures, these licenses must be renewed annually.

 

International companies are required to settle all outstanding arrears from previous years to be granted permission to continue technical operations along this route. This measure transforms Iran from a mere geographical observer into the “Physical Layer Network Manager” in the region, asserting its right to claim access fees for its optical infrastructure.

Oversight of Tech Giants

The second axis holds high strategic importance. Today, a large portion of the traffic passing through the Persian Gulf cables belongs to American corporations such as Meta (Facebook and Instagram), Amazon, and Microsoft. These companies transfer user data on a petabyte scale through these cables to data centers abroad.

 

From a strategic perspective, all these transborder communication and information technology companies operating in this region must necessarily operate under the laws of the Islamic Republic of Iran. The oversight and regulation of this volume of passing data is not merely a legal matter, but a technical necessity at the “Transport Layer.”

 

These companies are obligated to accept the oversight and regulatory protocols of Iran’s Ministry of Information and Communications Technology. In fact, the passage of every “bit” of data through cables located within Iran’s maritime jurisdiction must occur in compliance with the country’s legal and security requirements; for geography defines sovereignty over infrastructure.

 

Monopoly on Subsea Engineering Services

The third step, which is entirely technical and operational, concerns the maintenance and repair of optical infrastructures. Submarine fiber-optic cables are highly vulnerable and require constant maintenance due to fishing and commercial activities in the Strait of Hormuz.

 

Repair operations for these cables require precise navigation for cable-laying vessels, as well as expertise in commercial diving and Remotely Operated Vehicles (ROV).

 

Given that the Strait of Hormuz is entirely part of Iranian territory, all routine matters, repairs, and cable maintenance must be performed exclusively by Iranian companies.

According to this framework, the executing firm must be a company with more than 50% Iranian ownership and must operate entirely under the laws of the Islamic Republic. This technical monopoly achieves two goals:

 

  • Infrastructure Security: Preventing the presence of foreign technical teams at sensitive points on the seabed in the Strait of Hormuz.

 

  • Knowledge Localization: Transferring advanced deep-sea engineering technologies to domestic companies and preventing the outflow of large amounts of foreign currency for services that Iran has the capability to perform.

 

Iran’s Legal Standing and International Conventions

Alongside this operational triad, the legal foundation of these demands must also be addressed. The Islamic Republic of Iran is not a member of the United Nations Convention on the Law of the Sea (1982) and, based on its national interests, sees no necessity in joining agreements that limit national sovereignty.

 

By leveraging the strategic position of the Strait of Hormuz and exercising full sovereignty over the Persian Gulf, Iran has the capability to take the lead in forming a global consensus for drafting new maritime and infrastructure laws, rather than following dictated rules.

 

In the medium term, Iran could pioneer the drafting of a new convention that recognizes the rights of coastal states regarding “digital assets and optical cables”—an action that will shift the balance of power in global infrastructure diplomacy.

 

Monetizing Iran’s economic and sovereign potential in the field of internet cables is more than a simple commercial matter. By relying on an “annual licensing system,” “compelling American companies to comply with national laws,” and “monopolizing repair services within domestic firms,” Iran can transform the Strait of Hormuz into the center of gravity for digital governance in the region.

 

This strategy, in addition to sustainable foreign currency generation, ensures that global communication security is inextricably linked to the authority and infrastructural stability of the Islamic Republic of Iran.