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They haul it up: http://www.slate.com/articles/news_and_politics/recycled/200...

An awesome and surprising answer to a question I didn't know I had... Thanks for sharing that!

It's a pretty impressive process. The cable is indeed hoisted up, after being "hooked" by a device dragging along the ocean floor. I think I saw a video of this once, here's one on youtube (not the same one I saw, but seems to have the same info): https://youtu.be/m6qTk5WNq9E

the cable is cut, both ends raised to the ship, new section of cable inserted, new splice done, encapsulated, put back in the ocean.

there is not enough slack in a modern well-laid cable system to hoist an intact cable to the surface.

How can you raise both ends of the cut cable if hosting an intact cable is impossible because there isn't enough slack? You have to do it one at a time? Then add the extra slack required between the two ends? I don't really understand lol

yes, basically what you described.

The channel is not very deep compared to an ocean. (max 180m, the cable could well be in shallower waters - if it is cut it probably is)