The Naked Truth about Submarine
Cables!
By Amr Eid
Chief Commercial Officer
Agenda
Covered Geographical Area:
West Africa, Europe, Middle East, India, up
to the west Coast of Australia
• Key submarines in that region
• Highlight of infrastructure upgrading.
• Snapshot of new project proposed.
• Introducing new opportunities.
Overview
1. MENA Region
2. Africa
3. Europe
4. South Asia and Asia Pacific
5. Planned Submarine Cables
6. The Opportunities
7. Appendix A - Maps
Middle East and North Africa – cables snapshot
Submarine Network Name
EUROPA* (Cyprus and Lebanon)
ALASIA* (Cyprus Syria)
Middle East North Africa (MENA) Cable System/Gulf Bridge
International (GBICS)
GBICS/MENA Cable System
MedNautilus Submarine System
Tata TGN-Gulf
OMRAN/EPEG Cable System
Tamares North
Pishgaman Oman Iran (POI) Network
Jonah
Europe India Gateway (EIG)
Saudi Arabia-Sudan-2 (SAS-2)
IMEWE
The East African Marine System (TEAMS)
SEACOM/Tata TGN-Eurasia
FLAG FALCON
Transworld (TW1)
SeaMeWe-4
Kuwait-Iran
Qatar-UAE Submarine Cable System
Saudi Arabia-Sudan-1 (SAS-1)
SeaMeWe-3
Lev Submarine System
Fiber Optic Gulf (FOG)
FLAG Europe-Asia (FEA)
Aletar
BERYTAR
CADMOS
UGARIT
Aden-Djibouti
CIOS
UAE-Iran
RFS Year Length (km)
2015
2014
2013
2012
2013
2012
2013
2012
2012
2012
2011
2011
2010
2009
2009
2006
2006
2005
2005
2004
2003
1999
1999
1998
1997
1997
1997
1995
1995
1994
1994
1992
8000
7000
4031
600
345
400
2297
15000
330
12091
4900
15000
10300
1300
20000
380
100
333
39000
2600
1300
28000
787
134
230
239
266
250
170
Lit Capacity
(Gbps)
Max Capacity
(Gbps)
0
0
0
0
1180
1000
1340
760
550
70
60
0
700
0
3660
120
0
390
60
3590
2.5
30
10
410
165
60
440
0
0
210
90
0
0
0
9800
5280
30400
2560
3200
42000
4800
12800
2880
0
9600
1280
0
6400
1280
6400
480
80
1280
460
540
0
4680
0
0
3200
3200
0
0
0
*Proposed Cables
Source: Telegeography 2014
Middle East – cables (1/2)
Submarine Networks
• Since 2010, IMEWE, Europe-India Gateway, Hawk, TE North, TGN-Gulf, Gulf Bridge, Jonah, and Loukkos have all
boosted the amount of submarine cable capacity serving North African and Middle Eastern countries
• Libya International Telecom’s Silphium cable, launched in early 2013, provides additional capacity between Libya
and Greece having potential capacity of 1.2Tbps
• Launched in February 2012, Tata Communications’ TGN-Gulf cable links Saudi Arabia, Bahrain, Qatar, Oman,
Saudi Arabia, and the U.A.E. to a branching unit on the SEACOM/TGN-Eurasia cable
Bay of Bengal Cable
• Also in early 2012, Gulf Bridge International extended a leg of its cable to Al-Faw, Iraq. This extension represents
Iraq’s first direct connection to an international submarine cable.
• Reliance Globalcom landed the older Falcon cable in Al-Faw in July 2012
Proposed Submarine Cables
• Algerie Telecom in the process of building a 500-kilometer cable between Oran, Algeria and Valencia, Spain –
estimated at $16million
• SeaMeWe-5 cable - essentially spanning similar ground as SeaMeWe-3 and SeaMeWe-4, from Southeast Asia to
the Middle East and Western Europe
• Asia Africa Europe-1 (AAE-1) cable – headed by Telecom Egypt, is a similar project. Like all cables that run from
AAE-1 Cable
(Proposed cable routes)
the Mediterranean to the Indian Ocean, these would have a terrestrial span in Egypt
• Bay of Bengal Gateway (BBG) cable would avoid Egypt. BBG would run from Malaysia to Oman via Sri Lanka and
India and connect in Oman to the terrestrial EPEG system. EPEG would then provide a diverse route to Europe,
avoiding Egypt.
Source: Telegeography 2014
Middle East – cables (2/2)
Terrestrial Networks
• JADI - The Jeddah-Amman-Damascus-Istanbul (JADI) network that links Saudi Arabia and Turkey via Jordan and Syria was launched in July 2010. The cable
was reportedly out of service as of early 2013 due to the ongoing civil war in Syria
• RCN - The Regional Cable Network (RCN) is another terrestrial link meant to function as an alternative route to the submarine cable networks crossing the
Mediterranean and Red Seas. The system, while similar to JADI, will be considerably longer, stretching approximately 4,000 kilometers from the U.A.E. to
Istanbul via Saudi Arabia, Jordan, and Syria. RCN is slated to provide 2.4 Tbps of initial capacity. The system was due to begin service by late 2012, but is
delayed due to the civil war in Syria
• EPEG – Omantel, Telecommunications Infrastructure Company of Iran, Cable & Wireless Worldwide (now Vodafone), Rostelecom, and Delta Telecom developed
a new Europe Persia Express Gateway (EPEG) cable which links Frankfurt to Oman via Russia and Iran. The system entered service in January 2013. As part of
the project, Omantel built a new submarine cable linking the cities of Barka, Diba, and Khasab in Oman with Jask, Iran
• GBICS – Gulf Bridge International (GBI) has integrated a terrestrial link into its submarine network to provide route diversity for its customers. The GBI
submarine cable spans the Persian Gulf and links up with the MENA cable to provide connectivity to the Mediterranean via Egypt. In late 2012, however, GBI
inaugurated a terrestrial route from its landing at Al-Faw through Iraq and Turkey into Europe. This allows GBI to offer Asia-Europe route diversity that avoids
Egypt
• MEETS – (proposed) consortium of Middle Eastern operators, including du, Vodafone Qatar, Zajil, and Zain, has announced plans for a terrestrial route
connecting to Europe. The system, known as the Middle East-Europe Terrestrial System (MEETS), would initially provide connectivity between the UAE, Qatar,
Bahrain, and Kuwait over a fiber pair acquired on the GCC Interconnection Authority’s power grid. The first phase will be ready for service in early 2015 at a cost
of $36 million. A second phase of the network would extend connectivity to Turkey via Iraq
Source: Telegeography 2014
Middle East – Traffic Flows
Middle Eastern International Internet
Bandwidth by Region
Region
Gbps Percentage
Middle East
Africa
Asia
Europe
U.S. & Canada
Middle East Total
242
26
268
3,677
6%
1%
6%
85%
99
2%
4,312
Synopsis:
• Majority of Bandwidth from the Middle East continues to flow to Europe (85%)
• Turkey’s international Internet bandwidth amounted to 60 percent of the total for the
Middle East with 2.6 Tbps
• Saudi Arabia and the U.A.E. continued to experience rapid increases, and have
emerged as major Internet hubs in the region
• Between 2009 and 2013, international Internet capacity increased 10-fold to Saudi
Arabia and 7-fold to the U.A.E.
Outlook:
• New efforts to establish carrier-neutral colocation and internet exchange facilities
• With a more vibrant local market for IP transit and local content hosting, a potential
reduced dependence on individual pipe and port transactions with Europe
• Along with reducing bandwidth prices, these structural changes may foster an IP
transit marketplace that simply didn’t exist before in the Middle East.
Source: Telegeography 2014
Table of Contents
1. MENA Region
2. Africa
3. Europe
4. South Asia and Asia Pacific
5. Planned Submarine Cables
6. The Opportunities
7. Appendix A - Maps
Africa – cables snapshot
Submarine Network Name
South Atlantic Express (SAEx)*
WASACE Africa*
South Atlantic Cable System (SACS)*
MENA Cable System/Gulf Bridge International
Silphium
Algeria-Spain
Africa Coast to Europe (ACE)
West African Cable System (WACS)
Loukkos
Lower Indian Ocean Network 2 (LION2)
Seychelles to East Africa System (SEAS)
Libreville-Port Gentil Cable
TE North/TGN-Eurasia/SEACOM/Alexandros
Europe India Gateway (EIG)
Hawk
Ceiba-1
Saudi Arabia-Sudan-2 (SAS-2)
Eastern Africa Submarine System (EASSy)
IMEWE
Main One
GLO-1
HANNIBAL System
Lower Indian Ocean Network (LION)
The East African Marine System (TEAMS)
SEACOM/Tata TGN-Eurasia
Angola Domestic Network System (ADONES)
Atlas Offshore
FLAG FALCON
SeaMeWe-4
Med Cable Network
RFS Length Lit Capacity Max Capacity
(Gbps)
Year (km)
(Gbps)
2015 10350
0
0
2015
9934
0
0
2014
6500
0
0
2013
2013
2013
2012
2012
2012
2012
2012
2012
2011
2011
2011
2011
2011
2010
2010
2010
2010
2009
2009
2009
2009
2008
2007
2006
2005
2005
8000
425
500
17000
14916
187
2700
1930
198
3634
15000
3400
287
330
10500
12091
7000
9800
178
1060
4900
15000
1600
1634
10300
20000
1300
1180
70
0
200
500
80
0
0
20
1010
700
100
0
0
190
3660
130
50
40
20
120
0
0
40
390
3590
20
9800
1200
0
5120
5120
1280
1280
640
40
36000
2880
2720
0
0
11800
9600
4960
2560
9600
1280
1280
0
0
320
6400
6400
1280
Submarine Network Name
Saudi Arabia-Sudan-1 (SAS-1)
SAFE
SAT-3/WASC
ALPAL-2
Atlantis-2
SeaMeWe-3
Italy-Libya
FLAG Europe-Asia (FEA)
Aletar
Trapani-Kelibia
Estepona-Tetouan
Aden-Djibouti
Eurafrica
RFS Length Lit Capacity Max Capacity
(Gbps)
Year (km)
(Gbps)
2003
333
10
1280
2002 13500
440
440
2002 14350
340
340
2002
312
10
160
2000
8500
40
160
1999 39000
410
460
1998
570
40
120
1997 28000
440
4680
1997
787
0
0
1995
209
32.5
42.5
1994
113
63
63
1994
266
0
0
1992
3100
0
0
*Proposed Cables
Source: Telegeography 2014
Africa – cables (1/2)
Submarine Networks
• For years, submarine capacity to West Africa had been provided almost exclusively by the consortium-owned,
expensive and limited SAT-3 cable system, stretching from South Africa to Portugal
• Main One launched service in July 2010 with a 7,000-kilometer cable connecting Nigeria and Ghana to Portugal
• Glo-1 launched in October 2010 and connects Nigeria and Ghana to the United Kingdom
• The West African Cable System (WACS) consortium cable entered service in May 2012 and links South Africa to
the U.K., connecting several West African countries along the way.
• The France Telecom-led Africa Coast to Europe (ACE) cable launched service in December 2012 and connects
France and Portugal with Senegal, Gambia, Guinea, Sierra Leone, Liberia, Cote d’Ivoire, Equatorial Guinea, and
Sao Tome. The cable may be extended to South Africa in the future with additional landings in the Democratic
Republic of Congo, Angola, and Namibia.
• Plans finally came to fruition in July 2009 with the completion of the SEACOM cable.
• Further capacity became available upon completion of The East African Marine System (TEAMS) in October of the
same year.
• Another major project, the Eastern African Submarine Cable System (EASSy), came online in July 2010.
• The recent submarine cable builds along the East African coast have turned Kenya into a regional submarine cable
hub. Four cables now land in Mombasa (SEACOM, TEAMS, EASSy, and LION2 between Kenya and Mayotte).
Proposed Cables
• With a large number of new cables now in service along both coast of Africa, new projects are focused on alternate
routes. Angola Cables and Telebras are planning to build the South Atlantic Cable System (SACS) between Angola
and Brazil. Angola Cables is a consortium, comprised of incumbent Angola Telecom, ISPs MSTelcom and Movicel,
and mobile operators Unitel and Startel. SACS is scheduled to enter service in the fourth quarter of 2014.
• Another cable is planned for the South Atlantic as well. South African investment group eFive is planning the South
Atlantic Express (SAEx) cable linking South Africa and Brazil with a branch to St. Helena. eFive hope to have the
cable in service by the first quarter of 2015.
South Atlantic Cable System
South Atlantic Express Cable
(Proposed cable routes)
Source: Telegeography 2014
Africa – cables (2/2)
Terrestrial Networks
• In January 2013, the government of South Sudan stated its intention to deploy a fiber optic network connecting the capital Juba with submarine cables in east
Africa. Internet service in the new country is currently provided almost exclusively via satellite, and terrestrial fiber links are expected to vastly reduce costs and
improve reliability
• In June 2010 a joint declaration was signed by Algeria, Niger, and Nigeria for the rollout of a 4,500-kilometer terrestrial fiber-optic cable from Algiers via Zinder
(Niger) to Abuja (Nigeria). It is scheduled for completion in 2013. Construction of a 200-kilometer missing link of the ‘Trans-Sahara Highway’ from Assamaka
(Algeria) to Arlit (Niger) is also scheduled to begin in 2013
• Ethiopia – state-owned incumbent (and monopoly) operator Ethio Telecom built a national fiber backbone in 2008. The 10,000-kilometer network fans out from
the capital Addis Ababa and connects 78 towns with a capacity of STM-1, 46 towns with a capacity of STM-16, and nine towns with a capacity of 10 Gbps. Ethio
Telecom has international connectivity through SEACOM via Djibouti
• Tanzania – the government first launched its National Information Communication and Technology Broadband Backbone (NICTBB) in 2010, and finished the last
of three terrestrial rings covering the nation in 2012. The NICTBB is the terrestrial continuation of EASSy and provides overland connections to bordering
countries Kenya, Uganda, Burundi, and Zambia. Its operational management is handled by fixed line incumbent TTCL
• Uganda – The National Information Technology Authority of Uganda (NITA-U) is in the process of building the National Data Transmission Backbone
Infrastructure and e-Government Infrastructure (NBI and EGI) projects. These projects aim to connect all major towns in the country through a 1,500-kilometer
fiber system with border connections to Kenya, South Sudan, and Rwanda
• Kenya – Soliton Telmec of Kenya is managing the system for the Ugandan government
• South Africa – Liquid Telecom, owned by Zimbabwe-based Econet, is constructing a large fiber network spanning Zambia, Zimbabwe, Botswana, the DRC, and
South Africa, and reaching the border of Mozambique. Liquid Telecom’s network penetrated into southern DRC in 2012, reaching the cities of Lubumbashi and
Kolwezi. Liquid Telecom also extended its network footprint by purchasing the East Africa fiber assets of the Altech Group, which includes international
submarine cable capacity on SEACOM. These terrestrial assets consist of Kenya Data Networks, Infocom Uganda and Altech Stream Rwanda, and serve to
Source: Telegeography 2014
expand Liquid’s presence in Africa from Cape Town to Nairobi
Africa – Traffic Flows
African International Internet
Bandwidth by Region
Region
Gbps Percentage
Africa
Asia
Europe
Latin America
U.S. & Canada
Africa Total
133
75
1,235
0
9%
5%
85%
0%
13
1%
1,456
100%
Synopsis:
• Traffic flow is similar to the Middle East, with the majority of bandwidth from Africa
flowing to Europe (85%)
• The launch of SEACOM, TEAMS, and EASSy submarine cable systems on the East
African Coast, and Main One, Glo-1, WACS, and ACE on the West Coast have
spurred sub-Saharan Africa‘s rapid growth, increased market competition, and
lowered prices
• These new cables have also encouraged operators to establish PoPs for IP transit in
sub-Saharan African countries:
• SEACOM offers IP services in South Africa, Mozambique, Tanzania, and Kenya
• Main One Cable offers IP services in Nigeria and Ghana
• Telecom Italia, Level 3 and Saudi Telecom among a host of companies
establishing Djibouti as a large regional IP transit hub
Outlook:
• New connections have helped make communications more affordable with wet
capacity prices falling as competition increases.
• Cross-border terrestrial networks are expanding rapidly in Africa but carriers still
largely use intra-African capacity to interconnect with submarine cable stations for
onward transit to Europe, rather than to facilitate the exchange of African traffic
Source: Telegeography 2014
Table of Contents
1. MENA Region
2. Africa
3. Europe
4. South Asia and Asia Pacific
5. Planned Submarine Cables
6. The Opportunities
7. Appendix A - Maps
Europe – main cables snapshot
Submarine Network Name
Arctic Fibre*
EUROPA*
Russian Optical Trans-Arctic Cable System (ROTACS)*
WASACE Europe*
Hibernia Express*
ALASIA*
Emerald Express*
MedNautilus Submarine System
MENA Cable System/Gulf Bridge International
Silphium
Algeria-Spain
Balkans-Italy Network (BIN)
Tamares North
Jonah
Africa Coast to Europe (ACE)
West African Cable System (WACS)
TE North/TGN-Eurasia/SEACOM/Alexandros
Europe India Gateway (EIG)
Hawk
Pencan-8
IMEWE
GLO-1
Caucasus Cable System
SHEFA-2
GO-1 Mediterranean Cable System
Atlas Offshore
High-capacity Undersea Guernsey Optical-fibre (HUGO)
BCF-1
SeaMeWe-4
Med Cable Network
Janna
Lit Capacity Max Capacity
RFS Year Length (km) (Gbps)
(Gbps)
2015
15167
0
2015
0
2015
2015
2014
2014
2014
2013
2013
2013
2013
2013
2012
2012
2012
2012
2011
2011
2011
2011
2010
2010
2008
2008
2008
2007
2007
2005
2005
2005
2005
16373
6583
4600
5200
7000
8000
425
500
276
345
2297
17000
14916
3634
15000
3400
1400
12091
9800
1200
1000
290
1634
425
391
20000
1300
634
0
0
0
0
0
1340
1180
70
0
100
70
0
200
500
1010
700
100
0
3660
50
100
20
40
40
0
40
3590
20
0
Submarine Network Name
0 FARICE-1
0 Svalbard Undersea Cable System
0 Vodafone Malta-Sicily Cable System (VMSCS)
0 Greece-Western Europe Network (GWEN)
25600 INGRID
0 Apollo
0 Tata TGN-Western Europe
30400 SAT-3/WASC
ALPAL-2
9800
FLAG Atlantic-1 (FA-1)
1200
0 Tata TGN-Atlantic
Hibernia Atlantic
0
TAT-14
42000
12800 SeaMeWe-3
5120 Columbus-III
Atlantic Crossing-1 (AC-1)
5120
FLAG Europe-Asia (FEA)
36000
2880
2720
0
9600
2560
1280
570
480
320
0
21760
6400
1280
0
RFS Length Lit Capacity Max Capacity
Year (km)
(Gbps)
(Gbps)
2004
1395
100
7000
2004
2714
40
5120
2004
260
20
960
2004
700
1600
0
2004
64
0
0
2003 13000
3650
38400
2002
3578
1260
19200
2002 14350
340
340
2002
312
10
160
2001 14500
2840
26400
2001 13000
2810
20480
2001 12200
2950
15360
2001 15295
1870
8960
1999 39000
410
460
1999
9833
160
320
1998 14301
1760
4480
1997 28000
440
4680
*Proposed Cables
Source: Telegeography 2014
Europe – cables (1/2)
• Europe is the most ‘developed’ telecommunication market in the world, being the first user of subsea cables. This in mind, European markets have achieved a
‘peak’ and now International Internet capacity growth in Europe continued to steadily contract in 2013
• International Internet capacity grew 32 percent in 2013 to reach nearly 76 Tbps, compared to 40 percent growth in 2012 and 49 percent growth in 2011
• Intra-regional capacity comprised almost 80 percent of all international Internet connectivity connected to Europe The trans-Atlantic route’s share of international
capacity connected to Europe fell slightly to 12 percent. Internet capacity grew most rapidly between Europe and Africa, rising 71 percent between 2012 and
2013
• This said however, Europe has continued to grow as an interregional Internet hub for various sub regions of the globe. For instance, in the past decade,
interregional Internet capacity to Europe has grown dramatically for the Middle East, North Africa, Sub-Saharan Africa, and South Asia (see Figure: Changes in
Sub regional Capacity Connected to Europe, 2003-2013). North Africa and the Middle East, in particular, are dependent on Europe for more than 80 percent of
their international Internet bandwidth connectivity
Source: Telegeography 2014
Europe – cables (2/2)
• Germany continued to be the largest consumer of international bandwidth in Europe, followed by the United Kingdom and
France coming in third
• Europe’s four Internet hubs (Frankfurt, London, Paris, and Amsterdam) continued to amass high bandwidth and traffic
levels in 2013, though notably, average network utilization levels have edged slightly down in each of those cities over the
past five years. Marseille and Kiev have seen more rapid international bandwidth and traffic growth in the last five years
than any other major European cities, with compounded annual growth in excess of 100 percent
Country
Germany
United
Kingdom
France
Netherlan
ds
Sweden
Spain
Russia
Italy
Belgium
Austria
Poland
Denmark
Czech
Republic
Hungary
Ukraine
2013
28,644
CAGR
2009-13
44%
20,268
18,322
39%
44%
15,339
6,013
4,995
4,768
4,381
3,568
2,981
2,924
2,723
43%
39%
35%
57%
34%
73%
43%
57%
41%
2,526
1,990
1,613
55%
44%
89%
International Internet Bandwidth
Rank Route
Netherlands 1
United Kingdom
Germany 2
Netherlands
3
France - Germany
United Kingdom United States
4
France - United
5
Kingdom
6
France - Spain
Germany - United
7
Kingdom
France - United
8
States
9
Germany - Poland
10 Germany - Sweden
2013
4,593
4,581
4,150
4,118
3,670
2,732
2,475
2,161
2,138
1,833
Top Bandwidth Routes for Europe
Source: Telegeography 2014
Europe – Traffic Flows
European International Internet
Bandwidth by Region
Region
Gbps Percentage
Africa
Asia
Europe
Latin America
1,235
5,599
60,066
72
2%
7%
79%
0%
U.S. & Canada
8,949
12%
75,921
100%
Total Europe
Synopsis:
• While the U.S. remains a prominent hub of interregional Internet traffic, Europe now
hosts a vibrant IP transit market in its own right, attracting international buyers from
Africa, the Middle East, and Asia.
• As in North America, prices in Europe continued to decline over the past year, but at a
more moderate rate than the longer term trend.
• Carriers dropped prices for full 10 GigE ports an average of 14 percent across the
region between Q2 2012 and Q2 2013, and 29 percent compounded annually since
2010. The lowest 10 GigE prices quoted in Europe were found in hubs such as
Frankfurt and London at $0.49 per Mbps.
• Prices have become uniform among major hubs in western, northern, eastern, and
southern Europe.
• The rate of annual price declines ranged from 31 percent in Madrid to 37 percent in
Amsterdam and Copenhagen.
Source: Telegeography 2014
Table of Contents
1. MENA Region
2. Africa
3. Europe
4. South Asia and Asia Pacific
5. Planned Submarine Cables
6. The Opportunities
7. Appendix A - Maps
South Asia – main cables snapshot
Submarine Network Name
RFS Year
Length (km)
Lit Capacity
(Gbps)
Max Capacity
(Gbps)
Australia-Singapore Cable (ASC)*
APX-West*
Asia Pacific Gateway (APG)*
2015
2014
2014
4800
4600
10400
0
0
0
0
0
0
Southeast Asia Japan Cable (SJC)
2013
8900
1200
28800
GBICS/MENA Cable System
Asia Submarine-cable Express
(ASE)/Cahaya Malaysia
Dhiraagu Cable Network
Europe India Gateway (EIG)
IMEWE
PGASCOM
Tata TGN-Intra Asia (TGN-IA)
Asia-America Gateway (AAG) Cable
System
Batam Dumai Melaka (BDM) Cable
System
JAKABARE
SEACOM/Tata TGN-Eurasia
Matrix Cable System
WARF Submarine Cable
2012
1000
5280
Dhiraagu-SLT Submarine Cable Network
FLAG FALCON
Transworld (TW1)
Bharat Lanka Cable System
SeaMeWe-4
Tata TGN-Tata Indicom
EAC-C2C
i2i Cable Network (i2icn)
SAFE
APCN-2
SeaMeWe-3
FLAG Europe-Asia (FEA)
2012
2012
2011
2010
2010
2009
7500
1253
15000
12091
264
6700
0
0
700
3660
160
1900
0
0
2880
9600
0
9600
2009
20000
1880
6000
2009
2009
2009
2008
2007
353
1330
15000
1055
680
80
160
0
170
10
1280
1280
0
2560
1280
2007
2006
2006
2006
2005
2004
2002
2002
2002
2001
1999
1997
850
10300
1300
325
20000
3175
36500
3200
13500
19000
39000
28000
20
390
60
20
3590
640
3260
320
440
3840
410
440
160
6400
1280
960
6400
47200
30550
8400
440
21120
460
4680
*Proposed Cables
Source: Telegeography 2014
South Asia – cables
• South Asia derives most of its international bandwidth through submarine cables. These cables provide both intra-Asia connectivity and links to the United States
and Europe. Between 2008 and 2012, the lit capacity of intra-Asia submarine cables increased at a compounded annual growth rate of 28 percent, from 5.4 Tbps
to 14.4 Tbps
• India, which has exhibited some of the largest bandwidth growth rates in Asia, saw rapid price declines over the past year. Between 2011 and 2012, the median
monthly STM-1 lease price for Mumbai–Singapore fell 43 percent to $11,000 and 39 percent compounded annually since 2009. Chennai-Singapore saw prices
decrease 24 percent over the past year to $15,000 and 43 percent compounded annually since 2009. These sharp reductions continue to narrow the price
discrepancies between eastern and southern Asia. Mumbai-Singapore is now only 2.8 times the price of a connection on Hong Kong-Singapore, compared to 4.5
times in Q4 2009. Similarly, Chennai–Singapore is now 4.7 times as expensive as Hong Kong-Tokyo, compared to 11 times in 2009
• Price erosion between India and East Asia is enabled by the relatively low incremental cost of supply available on the i2i Cable Network, TGN-Tata Indicom
Cable, and SeaMeWe-4, as well as by growing competition between service providers
Source: Telegeography 2014
South Asia – Bandwidth Consumption and Proposed Cables
• China was the largest consumer of international bandwidth in South Asia, followed by Japan and Singapore coming in third
• The intra-Asian bandwidth market is characterized primarily by submarine cable capacity and includes routes between both mature and developing markets.
Key cities such as Tokyo, Hong Kong, and Singapore have long been hubs where carrier networks interconnect, while growing cities in India and South Asia
are becoming more competitive as service providers extend to them a greater level of international connectivity
• Cable upgrades and an increased amount of competition have resulted in price erosion throughout the region in 2012. Wavelength prices on major routes
saw significant reductions, falling an average of 33 percent between 2011 and 2012 and ranging from $23,250 on Hong Kong-Tokyo to $185,000 on MumbaiSingapore.
• Two major intra-Asia systems are slated to enter service by 2014: the Southeast Asia Japan Cable (SJC) and Asia Pacific Gateway (APG) consortium
cables. These systems will have similar designs to the TGN-IA cable, which utilizes a trunk-and-branch configuration as opposed to the ring structure used in
the previous generation of systems.
• Several Asian carriers and Google built the 8,900-kilometer SJC system. The cable links Brunei, China, Japan, the Philippines, and Singapore. SJC was
launched in June 2013 at a cost of approximately $400 million.
• The APG cable, which is being built by a consortium of eleven Asian carriers and Facebook, will connect China, Hong Kong, Japan, South Korea, Malaysia,
Taiwan, Thailand, Vietnam, and Singapore. The cable will cover 10,400 kilometers and is expected to enter service in the third quarter of 2014.
Rank
1
2
3
4
5
6
7
8
Country
China
Japan
Singapore
Hong Kong
Taiwan
India
Korea, Rep.
Malaysia
2011
3,606.6
3,239.0
1,793.1
1,868.1
928.0
697.2
706.3
476.6
9
10
Philippines
Vietnam
253.1
209.4
2008-12
2012 CAGR
5,177.5
4,538.9
2,748.8
2,724.3
1,235.6
1,064.6
961.9
727.1
421.6
354.0
International Internet Bandwidth
53%
44%
73%
52%
45%
83%
37%
71%
66%
89%
Subsea Cable
APCN-2
FLAG/REACH North
Asia Loop
EAC-C2C
Tata TGN-Intra Asia
Asia Submarine-cable
Express (ASE)
FLAG Europe-Asia
SeaMeWe-3
Total Intra-Asia
APCN
2011
2012
3,840 3,840
2,660
2,820
1,900
3,780
3,260
1,900
800
440
440
400
410
12,060 14,430
Top Intra – Asian Bandwidth Routes
Source: Telegeography 2014
Asia Pacific – main cables snapshot
Submarine Network Name
Australia-Singapore Cable (ASC)
APX-East
Hawaiki Cable
APX-West
Asia Pacific Gateway (APG)
Solomons Oceanic Cable Network
Southeast Asia Japan Cable (SJC)
Interchange Cable Network (ICN)
Tonga Cable
GBICS / MENA Cable System
Asia Submarine-cable Express
(ASE)/Cahaya Malaysia
Dhiraagu Cable Network
Europe India Gateway (EIG)
IMEWE
Honotua
PGASCOM
HANTRU1 Cable System
Tata TGN-Intra Asia (TGN-IA)
Asia-America Gateway (AAG) Cable
System
American Samoa-Hawaii (ASH)
SEACOM/Tata TGN-Eurasia
Pipe Pacific Cable-1 (PPC-1)
Matrix Cable System
Telstra Endeavour
Gondwana-1
WARF Submarine Cable
Dhiraagu-SLT Submarine Cable Network
Batam-Rengit Cable System (BRCS)
Max
Length Lit Capacity Capacity
RFS Year
(km)
(Gbps)
(Gbps)
2015 4800
0
0
2015 12500
0
0
2015
0
0
2014 4600
0
0
2014 10400
0
0
2014
900
0
0
2013 8900
1200
28800
2013 1238
20
3200
2013
827
20
320
2012
1000
5280
2012 7500
2012 1253
2011 15000
2010 12091
2010 4500
2010
264
2010 3500
2009 6700
0
0
700
3660
20
160
0
1900
0
0
2880
9600
640
0
0
9600
2009 20000
2009 4250
2009 15000
2009 6900
2008 1055
2008 9125
2008 2151
2007
680
2007
850
2007
63
1880
1.1
0
500
170
160
20
10
20
10
6000
1.1
0
0
2560
1280
640
1280
160
0
Max
Length Lit Capacity Capacity
Submarine Network Name
RFS Year
(km)
(Gbps)
(Gbps)
FLAG FALCON
2006 10300
390
6400
Transworld (TW1)
2006 1300
60
1280
Bharat Lanka Cable System
2006
325
20
960
Australia-Papua New Guinea-2 (APNG-2)
2006 1800
0
0
SeaMeWe-4
2005 20000
3590
6400
Tata TGN-Tata Indicom
2004 3175
640 47200
Thailand-Indonesia-Singapore (TIS)
2003
968
30
320
EAC-C2C
2002 36500
3260 30550
i2i Cable Network (i2icn)
2002 3200
320
8400
SAFE
2002 13500
440
440
APCN-2
2001 19000
3840 21120
Australia-Japan Cable (AJC)
2001 12700
640
4000
Southern Cross Cable Network (SCCN)
2000 30500
2600
9600
SeaMeWe-3
1999 39000
410
460
SeaMeWe-3
1999 39000
410
460
FLAG Europe-Asia (FEA)
1997 28000
440
4680
*Proposed Cables
Source: Telegeography 2014
Asia Pacific – cables
• Lit capacity on submarine cables connected to Australia rose in 2012, after remaining constant from 2010 to 2011. Southern Cross, already the largest cable
by lit capacity in the sub region, has upgraded its network in several phases
• The Australia-Japan Cable (AJC) doubled its lit capacity to 640 Gbps by upgrading to 40 Gbps technology
• Pipe Pacific Cable-1 (PPC-1), which currently has a lit capacity of 200 Gbps, plans to upgrade the system with 100 Gbps technology, which will dramatically
increase the cable’s lit capacity to 3 Tbps.
• Even with the flurry of upgrades, the Australia & Pacific subregion is a hotbed of potential new submarine cables. There is strong interest in an additional cable
from western Australia to Southeast Asia since only SeaMeWe-3 connects these two regions.
• The western coast of Australia is home to two similar but unrelated cable projects: Australia Singapore Cable (ASC) and APX-West. ASC hopes to enters
service by Q1 2015. APX-West was announced at the beginning of 2013 and would connect Perth, Jakarta, and Singapore. APX-West has a target in-service
date of Q4 2014. Even with strong interest adding diversity to this route, there is likely not enough demand to support more than one new cable on the route
• Trident Subsea Cable hopes to link western Australia to Singapore via Indonesia by Q2 2015. Trident plans to interconnect with existing dark fiber pairs on the
Matrix Cable to create a seamless link.
• Both APX-East and Hawaiki hope to enter service in 2015, and aim to connect Sydney, Auckland, Hawaii, and the west coast of the United States. Hawaiki
also plans to install several branching units to enabling future connections to various South Pacific islands.
• In addition to APX-East and Hawaiki’s plans to connect Australia and New Zealand across the Tasman sea, one other project is focused purely on the transTasman route. The Tasman Global Access (TGA) cable, announced in February of 2013, would connect Sydney and Auckland. Funded by Telecom New
Zealand, Telstra, and Vodafone, the cable is expected to enter service in 2015. The prospects for the TGA cable going forward appear positive since all three
owners have significant capacity needs on their own, decreasing the need for outside capacity sales to help fund the system.
Source: Telegeography 2014
Asia Pacific – Pricing
• Growing international bandwidth demand between Australia, New Zealand, and the U.S. has been fulfilled primarily through capacity
upgrades to existing systems
• Price reductions reflect integration of newer transmission equipment and a declining cost of incremental capacity. Nevertheless,
geographic isolation, distance, and the relatively small number of providers that offer international capacity between the countries still
keep prices high and the observed rate of decline less than on other submarine cable routes
Source: Telegeography 2014
South Asia and Asia Pacific – Traffic Flows
Outlook
Asian:
• The outlook for bandwidth prices on intra-Asian routes portends steep decline
• Demand is robust and shifting towards higher capacities, evidenced by the number of
system upgrades and the number of planned cables in development
• On routes where new builds and upgrades are both undertaken, price declines will
likely be more rapid, similar to what was seen in 2012
• Construction of new intra-Asian cables does not reflect a pending capacity shortage
on existing cables. Rather, it shows that providers are increasingly interested in
owning their own capacity directly instead of incrementally buying it in the wholesale
market. This is evidenced in the shift towards consortium cables, which allow carriers
to achieve diversity and take advantage of current low unit costs. Capacity owners on
existing cable systems will likely price match their competitors, furthering price
declines into 2013 and beyond
Asia Pacific:
• Price declines have been enabled by the lower unit costs that continued capacity
upgrades to cables linking to Australia over the past few years brought
• With bandwidth demand continuing to grow, further upgrades to current systems
connecting Australia to Asia and the U.S. are underway. Between the U.S. and
Australia price declines will remain more moderate than other submarine cable routes
until a new cable system is constructed, and greater competition is introduced.
Source: Telegeography 2014
Table of Contents
1. MENA Region
2. Africa
3. Europe
4. South Asia and Asia Pacific
5. Planned Submarine Cables
6. The Opportunities
7. Appendix A - Maps
Planned Submarine Cables
Region/Cable Name
Sub-Saharan Africa
South Atlantic Cable System (SACS)
South Atlantic Marine System (SAMS)
TechTeleData (TTD) Cable
Europe-Asia
SeaMeWe-5
Asia Africa Europe (AAE)-1
Asia
Malaysia-Cambodia-Thailand Cable
Owner(s)
Construction Cost
(millions USD)
RFS Length Capacity (Initial/Potential)Landing Countries
Angola Cables
SEACOM
TechTeleData
n.a. Q2 2015
n.a. Q4 2014
n.a. Q4 2014
6,500
2,500
2,500
Consortium
Consortium
n.a.
2016
n.a. Q1 2016
n.a.
n.a.
Ezecom, Telekom Malaysia
$80
2015
1,425
Supplier
800 Gbps/40 TbpsAngola, Brazil
n.a.South Africa
n.a.South Africa
n.a.
n.a.
n.a.
n.a.n.a.
n.a.n.a.
n.a.
n.a.
n.a.Cambodia, Malaysia, Thailand
n.a.
n.a.
2014
8,000
China, Hong Kong, Japan, Korea,
Rep., Malaysia, Singapore, Taiwan,
n.a./54.8 Tbps Thailand, Vietnam
India, Malaysia, Oman, Sri Lanka,
n.a. UAE
Hibernia Networks
$250
2014
4,600
n.a./25.6 TbpsCanada, United Kingdom
Emerald Express
Trans-Pacific
Emerald Networks
$300
2014
5,200
New Cross Pacific (NCP) Cable System
Australia and South Pacific
Consortium
Interchange Cable Network (ICN)
Interchange Holdings, Nambawan Super, Vanuatu Post
Australia-Singapore Cable (ASC)
ASC International
Tasman Global Access (TGA) Cable
Telecom New Zealand, Telstra, Vodafone
Asia Pacific Gateway (APG)
Consortium
Bay of Bengal Gateway
Trans-Atlantic
Consortium
Hibernia Express
$500 Q3 2014 10,400
n.a. Q4 2015 15,000
January
2014
March
2015
$160
$31
$60
2015
1,238
n.a./40 TbpsIceland, Ireland, United States
China, Korea, Rep., Japan, Taiwan,
n.a. United States
450 Mbps/3.2 TbpsFiji, Vanuatu
NEC
TE Subcom
Alcatel
TE Subcom
n.a.
Alcatel
4,800
n.a./24 TbpsAustralia, Indonesia, Singapore
Alcatel
2,300
n.a./30 TbpsAustralia, New Zealand
n.a.
Source: Telegeography 2014
Planned Submarine Cables
Construction Cost
(millions USD)
Region/Cable Name
Owner(s)
APX-West
SubPartners, Indosat
$200 Q1 2015
APX-East
SubPartners
$300 Q4 2015 12,500
n.a./19.2 TbpsAustralia, New Zealand, United States
TE Subcom
Hawaiki
Hawaiki Cable Limited
$350 Q4 2015 10,200
n.a./20 TbpsAustralia, New Zealand, United States
TE Subcom
Trident Subsea Cable
Latin America and Caribbean
Trident Subsea Cable
$400 Q2 2015
Australia, Indonesia, Singapore (via fiber pairs on
n.a./16 Tbps Matrix Cable System)
n.a.
Brazil, Colombia, Dominican Republic, Guatemala,
n.a./50 Tbps Mexico, United States
Alcatel
America Movil Submarine Cable System-1 (AMX-1) America Movil
$1,100
RFS Length Capacity (Initial/Potential)Landing Countries
4,600
n.a.
Jul-09 17,500
n.a./32 TbpsAustralia, Indonesia, Singapore
TE Subcom
Aruba, Ecuador, Panama, Puerto Rico, United States,
n.a./80 Tbps U.K. Virgin Islands
Alcatel
n.a.Bermuda, Canada
n.a.
Pacific Caribbean Cable System (PCCS)
Polaris
Consortium
LinkBermuda
n.a. Q3 2014
n.a. Q1 2015
Seabras-1
Seaborn Networks
n.a. Q1 2015 10,500
n.a./40 TbpsBrazil, United States
Alcatel
Cable of the Americas
Mediterranean
Algeria-Spain
Angola Cables
n.a.
2015 10,900
n.a./20 GbpsBrazil, United States
n.a.
Algerie Telecom
n.a.
Didon
Other
Orange Tunisia, Tunisiana
$20
2014
April
2014
Arctic Fibre
Arctic Fibre, Inc.
Russian Optical Trans-Arctic Cable System (ROTACS) Polarnet
6,000
n.a.
Supplier
500
n.a.Algeria, Spain
n.a.
170
n.a.Italy, Tunisia
Alcatel
$640 Q4 2015 15,167
$980 Q4 2015 16,373
1.04 Tbps/32 TbpsCanada, Japan, United Kingdom, United States
n.a./60 TbpsJapan, Russia, United Kingdom
n.a.
TE Subcom
Source: Telegeography 2014
Table of Contents
1. MENA Region
2. Africa
3. Europe
4. South Asia and Asia Pacific
5. Planned Submarine Cables
6. The Opportunities
7. Appendix A - Maps
Africa: Virgin Market
• The continent of Africa is the world's
second largest continent after Asia.
• Africa is home to six of the ten fastestgrowing countries in the world
• The projected economy growth rate of
5.3% next year, from 4.8% in 2013.
• Spending time on the internet could add
US$300Billion to the economy by 2025
• More than 720million have mobile
phones.
• 167million already use the internet
• 52 million are already on Facebook
• Internet penetration is low at 16% of the
one billion people on the continent.
Source McKinsey & Co.
Neutral Infrastructure
• Operator Agnostic Cable System
• Transit Landing Stations
Table of Contents
1. MENA Region
2. Africa
3. Europe
4. South Asia and Asia Pacific
5. Planned Submarine Cables
6. The Opportunities
7. Appendix A - Maps
Appendix A - Maps
MENA
Appendix A - Maps
AFRICA
Appendix A - Maps
EUROPE
Appendix A - Maps
SOUTH ASIA/FAR EAST
Appendix A - Maps
AUSTRALIA
The Naked Truth about Submarine
Cables!
By Amr Eid
Chief Commercial Officer