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Global Submarine Cable Systems

Facilitating Carriers meet the Data transmission & Bandwidth demand

April 2015
Overview

The global submarine cable industry continues to witness high growth and is
amongst one of the prime focus areas by the leading telecom carriers globally-
which has aptly been supported by the recent development and advancements in
the underlying and supporting technologies for it and increased demand for
bandwidth. Long-haul trials of 400G wavelengths was successfully conducted in the
year 2014 and it is soon expected that the terabit wavelengths would soon be
operational in the next few years.

Telcos continue to focus on investing and deploying in the next generation


submarine cable systems, to cater to the increase in the demand of bandwidth
requirement of the future. Also, the cable networks deployed earlier continues to
undergo up gradation, as telcos continue to leverage upon the connectivity
provided by them across the developed countries. Increasing number of telcos are
focussing on to catering the demand for international bandwidth across the already
high demand markets. However, increasing demand from the developing countries
from Asia-Pacific, Latin America and African & Middle East continue to create
demand for the bandwidth requirements. Some of the countries which were earlier
not connected by the submarine cable also continue to be the focus areas as telcos
are keen to leverage upon the opportunities which exist in these previously
underserved countries.

Increasing numbers of vendors are also facilitating the carriers to achieve the
connectivity targets across various regions. The Supply vendors and the Upgrade
vendors continue to focus on the increasing demand for bandwidth requirements
created owing to digitization across the countries. Also, these vendors also act as
key strategic implementation partners to facilitate the timely deployments of the
cable networks and also help them in the cost optimization, which helps these
carriers to overcome the pricing pressure due to increased competition.

This research report provides an overall analysis of the global submarine cable
network and also focuses on the analysis across key regions for these cable
networks. It provides an overview of major submarine cable networks which exists
across the globe. Additionally, the recent development in the submarine cable
networks is also covered in the report. It also includes an analysis and overview of
some of the major vendors (suppliers) for the submarine cable networks.

The report is generated through secondary findings available on the internet and
the relevant sources of data have been mentioned wherever applicable.

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Target Audience

 Telecom service providers


 OSS and BSS vendors
 Internet Service Providers (ISPs)
 Global carriers
 Telecom Vendors

Key Companies Covered in the Report

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List of Contents

1. Executive Summary ....................................................................... 10


2. Overview and Analysis of Existing Submarine Cable Systems ....................... 12
2.1 Global Market Analysis ....................................................................... 12
2.2 Transatlantic Regional Market Overview and Analysis ................................... 15
2.3 Transpacific Regional Market Overview and Analysis .................................... 17
2.4 Oceania Regional Market Overview and Analysis ......................................... 19
2.5 North America and Latin America Regional Market Overview and Analysis .......... 21
2.6 Africa and Sub-Sahara Regional Market Overview and Analysis ........................ 23
2.7 South East Asia and Middle East Regional Market Overview and Analysis ............ 25
3. Overview of Suppliers .................................................................... 27
3.1 System Suppliers .............................................................................. 27
3.2 Upgrade Suppliers............................................................................. 28
4. Major Submarine Cable Networks ...................................................... 29
4.1 ACS Alaska-Oregon Network (AKORN) ...................................................... 29
4.2 Aden-Djibouti .................................................................................. 30
4.3 Adria-1.......................................................................................... 31
4.4 ALASIA .......................................................................................... 32
4.5 ALBA-1 .......................................................................................... 33
4.6 Aletar ........................................................................................... 34
4.7 ALPAL-2 ........................................................................................ 35
4.8 Angola Domestic Network System (ADONES) .............................................. 36
4.9 Apollo ........................................................................................... 37
4.10 Aqualink ........................................................................................ 38
4.11 West African Cable System (WACS) ........................................................ 39
4.12 Trident Subsea Cable ......................................................................... 40
4.13 Transworld (TW1) ............................................................................. 41
4.14 Trans-Pacific Express (TPE) Cable System................................................. 42
4.15 TE North/TGN-Eurasia/SEACOM/Alexandros .............................................. 43
4.16 Thailand-Indonesia-Singapore (TIS) ........................................................ 44
4.17 TERRA SW ...................................................................................... 45
4.18 The East African Marine System (TEAMS) .................................................. 46

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4.19 Tata TGN-Western Europe ................................................................... 47
4.20 Tata TGN-Pacific .............................................................................. 48
4.21 Tata TGN-Intra Asia (TGN-IA) ............................................................... 49
4.22 Tata TGN-Gulf ................................................................................. 50
4.23 TAT-14 .......................................................................................... 51
4.24 Tampnet Offshore FOC Network ............................................................ 52
4.25 Suriname-Guyana Submarine Cable System (SG-SCS) .................................... 53
4.26 Southern Cross Cable Network (SCCN) ..................................................... 54
4.27 Southern Caribbean Fiber.................................................................... 55
4.28 Southeast Asia Japan Cable (SJC) .......................................................... 56
4.29 South American Crossing (SAC)/Latin American Nautilus (LAN) ........................ 57
4.30 South America-1 (SAm-1) .................................................................... 58
4.31 Sistem Kabel Rakyat 1Malaysia (SKR1M) ................................................... 59
4.32 SEA MEA WE-5 ................................................................................. 60
4.33 SEA ME WE-4 ................................................................................... 61
4.34 SAT-3/WASC ................................................................................... 62
4.35 SAFE............................................................................................. 63
4.36 PLDT Domestic Fiber Optic Network (DFON) .............................................. 64
4.37 Pan-American Crossing (PAC) ............................................................... 65
4.38 Pan American (PAN-AM) ...................................................................... 66
4.39 Pacific Caribbean Cable System (PCCS) ................................................... 67
4.40 New Cross Pacific (NCP) Cable System..................................................... 68
4.41 Middle East North Africa (MENA) Cable System/Gulf Bridge International ........... 69
4.42 MedNautilus Submarine System ............................................................. 70
4.43 Med Cable Network ........................................................................... 71
4.44 Maya-1 .......................................................................................... 72
4.45 Interchange Cable Network 2 (ICN2) ....................................................... 73
4.46 IMEWE .......................................................................................... 74
4.47 Gulf Bridge International Cable System (GBICS)/Middle East North Africa (MENA)
Cable System ........................................................................................ 75
4.48 FLAG North Asia Loop/REACH North Asia Loop ........................................... 76
4.49 FLAG Europe-Asia (FEA) ...................................................................... 77
4.50 Bay of Bengal Gateway (BBG) ............................................................... 78
4.51 Asia Submarine-cable Express (ASE)/Cahaya Malaysia .................................. 79
4.52 Asia Pacific Gateway (APG) ................................................................. 80

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4.53 SEACOM/Tata TGN-Eurasia .................................................................. 81
4.54 SEA-US .......................................................................................... 82
4.55 Russian Optical Trans-Arctic Cable System (ROTACS) ................................... 83
5. Key Updates in the Global Submarine Cable Market ................................. 84
6. Major Submarine Cable Vendors ........................................................ 95
6.1 Fujitsu .......................................................................................... 95
6.2 Huawei Marine Networks .................................................................. 105
6.3 TE Connectivity ............................................................................. 108
6.4 NSW ........................................................................................... 115
6.5 ZTT International Ltd ...................................................................... 117
6.6 Nexans ........................................................................................ 119
6.7 OCC Corporation ............................................................................ 125
6.8 NEC............................................................................................ 127
6.9 Alcatel-Lucent ............................................................................... 131

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List of Figures

Figure 1: Investment in New Submarine Fiber Optic Projects, 1987-2014............................... 12


Figure 2: Deployment of New Submarine Fiber Optic Projects, 1987-2014 ............................. 13
Figure 3: Investment in New Submarine Fiber Optic Projects by Region, 2008-2014 ............ 13
Figure 4: Proposed Submarine Fiber Optic Projects by Region, 2015 and Beyond ................. 14
Figure 5: Share of South American International Bandwidth Demand by Country, 2013 ...... 21
Figure 6: Market Share for Supply of New Systems, 2004-2014* ................................................ 27
Figure 7: ACS Alaska-Oregon Network (AKORN) submarine cable route-map and Landing
Stations................................................................................................................................................. 29
Figure 8: Aden-Djibouti submarine cable route-map and Landing Stations............................. 30
Figure 9: Adria-1 submarine cable route-map and Landing Stations ........................................ 31
Figure 10: ALASIA submarine cable route-map and Landing Stations ....................................... 32
Figure 11: ALBA-1 submarine cable route-map and Landing Stations....................................... 33
Figure 12: Aletar submarine cable route-map and Landing Stations ........................................ 34
Figure 13: ALPAL-2 submarine cable route-map and Landing Stations..................................... 35
Figure 14: ADONES submarine cable route-map and Landing Stations ..................................... 36
Figure 15: Apollo submarine cable route-map and Landing Stations ........................................ 37
Figure 16: Aqualink submarine cable route-map and Landing Stations .................................... 38
Figure 17: WACS submarine cable route-map and Landing Stations ......................................... 39
Figure 18: Trident Subsea Cablesubmarine cable route-map and Landing Stations............... 40
Figure 19: Transworld (TW1) submarine cable route-map and Landing Stations ................... 41
Figure 20: Trans-Pacific Express (TPE) Cable System submarine cable route-map and
Landing Stations.................................................................................................................................. 42
Figure 21: TE North/TGN-Eurasia/SEACOM/Alexandrossubmarine cable route-map and
Landing Stations.................................................................................................................................. 43
Figure 22: TIS submarine cable route-map and Landing Stations .............................................. 44
Figure 23: TERRA SW submarine cable route-map and Landing Stations ................................. 45
Figure 24: TEAMS submarine cable route-map and Landing Stations........................................ 46
Figure 25: Tata TGN-Western Europe submarine cable route-map and Landing Stations .... 47
Figure 26: Tata TGN-Pacific submarine cable route-map and Landing Stations ..................... 48
Figure 27: TGN-IA submarine cable route-map and Landing Stations....................................... 49
Figure 28: Tata TGN-Gulf submarine cable route-map and Landing Stations ......................... 50
Figure 29: TAT-14 submarine cable route-map and Landing Stations ...................................... 51
Figure 30: Tampnet Offshore FOC Network submarine cable route-map and Landing
Stations................................................................................................................................................. 52
Figure 31: SG-SCS submarine cable route-map and Landing Stations ....................................... 53
Figure 32: SCCN submarine cable route-map and Landing Stations .......................................... 54
Figure 33: Southern Caribbean Fiber submarine cable route-map and Landing Stations ...... 55
Figure 34: SJC submarine cable route-map and Landing Stations ............................................. 56
Figure 35: SAC/LAN submarine cable route-map and Landing Stations ................................... 57
Figure 36: Sam-1 submarine cable route-map and Landing Stations ........................................ 58
Figure 37: SKR1M submarine cable route-map and Landing Stations........................................ 59
Figure 38: SEA MEA WE-5 submarine cable route-map and Landing Stations .......................... 60
Figure 39: SEA MEA WE-4 submarine cable route-map and Landing Stations .......................... 61
Figure 40: SAT-3/WASC submarine cable route-map and Landing Stations ............................. 62
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Figure 41: SAFE submarine cable route-map and Landing Stations........................................... 63
Figure 42: PDLT DFON submarine cable route-map and Landing Stations ............................... 64
Figure 43: PAC submarine cable route-map and Landing Stations ............................................ 65
Figure 44: PAN-AM submarine cable route-map and Landing Stations ..................................... 66
Figure 45: PCCS submarine cable route-map and Landing Stations .......................................... 67
Figure 46: NCP submarine cable route-map and Landing Stations ............................................ 68
Figure 47: MENA Cable System/Gulf Bridge International submarine cable route-map and
Landing Stations.................................................................................................................................. 69
Figure 48: MedNautilus submarine cable system route-map and Landing Stations ................ 70
Figure 49: Med Cable Network submarine cable route-map and Landing Stations ................ 71
Figure 50: Maya-1 submarine cable route-map and Landing Stations....................................... 72
Figure 51: ICN2 submarine cable route-map and Landing Stations ........................................... 73
Figure 52: IMEWE submarine cable route-map and Landing Stations ....................................... 74
Figure 53: GBICS/MENA submarine cable route-map and Landing Stations ............................. 75
Figure 54: FLAG/REACH North Asia Loop submarine cable route-map and Landing Stations
............................................................................................................................................................... 76
Figure 55: FEA submarine cable route-map and Landing Stations ............................................... 77
Figure 56: BBG submarine cable route-map and Landing Stations ............................................ 78
Figure 57: ASE/ Cahaya Malaysia submarine cable route-map and Landing Stations ............ 79
Figure 58: APG submarine cable route-map and Landing Stations ............................................ 80
Figure 59: SEACOM/Tata TGN-Eurasia submarine cable route-map and Landing Stations.... 81
Figure 60: SEA-US submarine cable route-map and Landing Stations ....................................... 82
Figure 61: ROTACS submarine cable route-map and Landing Stations ..................................... 83
Figure 62: Business Segments of Fujitsu......................................................................................... 97
Figure 63: Fujitsu Repeatered Submarine System ........................................................................ 99
Figure 64: Fujitsu- Revenue across Geographies ........................................................................ 100
Figure 65: Fujitsu- Revenue across Geographies, 2012-2014 ................................................... 101
Figure 66: Fujitsu- Revenues by Services ..................................................................................... 101
Figure 67: Fujitsu- Revenues by Services, 2012-2014 ................................................................ 102
Figure 68: Huawei Marine Networks Offerings ............................................................................ 105
Figure 69: Solutions offered by TE Connectivity......................................................................... 110
Figure 70: TE Connectivity- Revenue across Geographies ........................................................ 111
Figure 71: TE Connectivity- Revenue by Segments, 2012-2014 ............................................... 112
Figure 72: TE Connectivity- Revenue by Industry Verticals ...................................................... 114
Figure 73: Solutions offered by NSW ............................................................................................. 115
Figure 74: ZTT Solutions Offerings ................................................................................................ 117
Figure 75: Nexans Solutions Offerings .......................................................................................... 120
Figure 76: Nexans- Revenue across Geographies ........................................................................ 121
Figure 77: Nexans- Revenue across Geographies, 2012-2014 ................................................... 122
Figure 78: Nexans- Revenues by Segment .................................................................................... 122
Figure 79: Nexans- Revenues by Segments, 2012-2014 ............................................................. 123
Figure 80: OCC Offerings ................................................................................................................. 125
Figure 81: NEC- Solution Offerings ................................................................................................ 128
Figure 82: NEC- Revenue across Business Segment .................................................................... 129
Figure 83: NEC- Revenue across Geographies,2012-2014 .......................................................... 130
Figure 84: Alcatel-Lucent- Solutions Offerings ........................................................................... 132

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Figure 85: Alcatel-Lucent- Revenue across Geographies .......................................................... 133
Figure 86: Alcatel-Lucent- Revenue across Geographies, 2012-2014...................................... 134
Figure 87: Alcatel-Lucent- Revenues by reported Segments .................................................... 134
Figure 88: Alcatel-Lucent- Revenues by reported Segments, 2012-2014 ............................... 135

List of Tables

Table 1: Selected Popular Existing Transatlantic Cable Systems .............................................. 15


Table 2: Key Transatlantic Cable Systems planned between European Union and Americas
............................................................................................................................................................... 16
Table 3: Selected Popular Existing Transpacific Cable Systems ................................................ 17
Table 4: Key Transatlantic Cable Systems planned in the Transpacific region ....................... 18
Table 5: Selected Popular Existing Oceania Cable Systems........................................................ 19
Table 6: Key Transpacific Cable Systems planned in the Oceania region ................................ 20
Table 7: Selected Popular Existing North America and Latin America Cable Systems .......... 21
Table 8: Key Cable Systems planned in the North America and Latin America region .......... 22
Table 9: Selected Popular Existing Africa and Sub-Sahara Cable Systems ............................... 23
Table 10: Key Cable Systems planned in Africa and Sub-Sahara region ................................... 24
Table 11: Selected Popular Existing South East Asia and Middle East Cable Systems............ 25
Table 12: Key Cable Systems planned in South East Asia and Middle East region .................. 26
Table 13: Key 100G Upgrade Projects for Equipment Suppliers in 2013 and 2014 ................. 28
Table 14: Fujitsu- Key Information ................................................................................................. 96
Table 15: Fujitsu- Operational Highlights, 2012-2014 ............................................................... 104
Table 16: Fujitsu- Major Client Wins ............................................................................................ 104
Table 17: Huawei Marine Networks- Major Client Wins ............................................................. 107
Table 18: TE Connectivity- Key Information................................................................................ 109
Table 19: TE Connectivity- Operational Highlights, 2012-2014 ............................................... 114
Table 20: ZTT- Key Information ..................................................................................................... 117
Table 21: Nexans- Key Information ............................................................................................... 119
Table 22: Nexans- Operational Highlights .................................................................................... 123
Table 23: Nexans- Major Client Wins ............................................................................................ 124
Table 24: NEC- Key Information..................................................................................................... 127
Table 25: NEC- Operational Highlights ......................................................................................... 130
Table 26: Alcatel-Lucent- Key Information.................................................................................. 131
Table 27: Alcatel-Lucent- Operational Highlights ...................................................................... 136
Table 28: Alcatel-Lucent- Major Client Wins............................................................................... 136

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1. Executive Summary

The global submarine cable industry continues to witness high growth and is
amongst one of the prime focus areas by the leading telecom carriers globally-
which has aptly been supported by the recent development and advancements in
the underlying and supporting technologies for it and increased demand for
transmission bandwidth. Long-haul trials of 400G wavelengths was successfully
conducted in the year 2014 and it is soon expected that the terabit wavelengths
would soon be operational in the next few years. The industry which continued to
be dominated by 10G transmission technology for more than 10 years in the past-
seems to continue to undergo a paradigm shift as far as the bandwidth capacity
requirement is considered for the future. Also, owing to the fact that most of the
past submarine cable systems were built on the past technologies, which either
cannot support high bandwidth requirements of today or cannot also be upgraded,
there will an increasing probability of carriers investing in the next-generation
submarine cable system deployments, which will be more robust and cater to the
increase in the demand of bandwidth requirement of the future.

The first fiber optic cable, TAT-8, entered into service in December 1988. The sub-
marine cable system within the initial decade of its existence was mostly
controlled by consortia of operators, which included Government owned telcos
primarily. However, with the liberalization of the European telecommunications
market in the year 1998, the industry witnessed an upsurge in the investment and
growth. Driven by such positive signs, the investment in the submarine cable
systems increased from less than $1 billion in 1998 to in excess of $3 billion in
2000, which surged to more than $12 billion in 2001. As a result, the price of
international bandwidth reduced owing to increased competition across majority of
the transoceanic markets and increased developments in the dense wavelength
division multiplexing (DWDM) technology. However, as a result of this major
international wholesale network operators had declared bankruptcy, and
deployment of new undersea fiber optic systems came to a virtual standstill.

The demand for international bandwidth continues to witness an upsurge in the


recent years. The demand for bandwidth from the emerging countries like China
and India continues to witness an upsurge (in access of 75% over the period 2013-
2014). The growth rates from the relatively less developed countries like Nigeria
and Kenya also continue to grow in excess of 100% over the same period. On the
other hand, the growth rates in some of the countries like Turkey, Singapore and
France etc also grew by more than 50% over the same period. The decline in the
units cost for the bandwidth and the increase in the bandwidth requirements- has
resulted in the increased demand and also as global data transmission volume
continues to witness increase in growth, owing to increased digitization and
increased globalization (as companies continue to expand their geographic
presence).

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Supply contracts continue to witness upward trend in the recent years as the
market was muted until the last 2-3 years owing to the oversupply of capacity
which existed owing to the huge investments made by the concerned entities (like
telcos, enterprises, network equipments suppliers) in the past 15-20 years, which
somehow subsided owing to the global recession in 2008 and the continued Euro
zone crisis which prevailed 2-3 years (and continued crisis owing to Greece). The
demand and investment continue to increase in the recent years owing to
increasing demand which has resulted in the positive sentiment. The submarine
cable systems growth is being driven by increased focus on the emerging and less-
developed regions in the recent years like China, India, and Brazil which continue
to drive the overall telecom focus and growth be leading telcos. Also, increased
focus on the new routes and secondary markets by the investors and consortium
companies still continue to drive the growth in these companies.

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2. Overview and Analysis of Existing Submarine Cable Systems

2.1 Global Market Analysis

The first fiber optic cable became operational in the year 1988. The prices on
international bandwidth continues to grow exponentially until the year 2002, when
the bandwidth prices which witnessed a steep fall, further resulted in the
investments being made in the submarine optical fiber network to come to a
standstill. During the period 2003-2007, the industry continued to witness a very
low investment.

Figure 1: Investment in New Submarine Fiber Optic Projects, 1987-2014


($Billions by RFS Date)

Source: Terabit Consulting

The overall investment continues to witness a very slow but steady growth during
the period 2009 onwards, when the operators realized the opportunities by
deploying fiber network to interconnect the regions, which were relatively
underserved or lack sufficient fiber connectivity. The fiber optics which was being
deployed in the later phase also witnesses a transition from 40G to 100G
transmission technology.

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Figure 2: Deployment of New Submarine Fiber Optic Projects, 1987-2014
(Route Kilometers by RFS Date)

Source: Terabit Consulting

As per the data from the consulting firm Terabit Consulting, investments in excess
of $11 billion were made during the period 2008-14. Connectivity to the Sub-Sahara
African region witnessed investments of ~$3billion, whereas establishing fiber
connectivity between India and the Middle East to Europe had an investment of
~$1.7 billion. The BRICS region particularly the countries of Brazil, India, China,
and South Africa witnessed an investments of ~$7 billion during the period.

Figure 3: Investment in New Submarine Fiber Optic Projects by Region, 2008-


2014

Source: Terabit Consulting

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As per industry sources, the period between 2015 and beyond over the next few
years has in total of more than 150 new projects with a cumulative investment of
more than $22 billion. Out of this total investment amount, the projects which
currents in the advanced stages of deployment/completion stages and might
become operational accounts for ~$5 billion of the total investment. The projects
which would take a few years (medium term) for deployment accounts for
~$8 billion of total investments, whereas the projects which are still in the
planning stages/initial stages of deployment together accounts for ~$9.5 billion
investment in total.

Figure 4: Proposed Submarine Fiber Optic Projects by Region, 2015 and Beyond
(“High-Activity” and “Medium-Activity” Projects)

Source: Terabit Consulting

The key contrasting factor here is that the most of the investments is diversified
across all the regions as compared to only the developed regions a decade ago. The
developing markets and uncovered regions continue to witness the major influx of
this total investment.

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2.2 Transatlantic Regional Market Overview and Analysis

Transatlantic region basically includes the submarine cable network between North
America and European Union region. This was the most heavily invested and sough
region by the operators for investment.

The region boasts of currently 9 major deployed networks with the current
transmission speed of 23 Tbps.

The telecommunications market of the European Union was liberalized in the year
1998 and within half- a decade post the liberalization, total of 16 transatlantic
cable started services within the countries of the European Union and the United
States. A total of around 16+ cables was commissioned and became operational
during the period, which has witnessed almost zero level activity in the last
decade.

A key factor which continues to make the cable connectivity between these regions
as highly important and lucrative is the advancements in upgrade technology. The
cable connectivity is highly competitive on the terms of price and bandwidth of the
fibers existing.

The cable in the region has been the forefront in terms of 100G upgrades with
multiple cable networks such as Apollo, TGN-Atlantic, and FLAG Atlantic-1 etc
witnessing the 100G wavelength implementation. Alcatel-Lucent in partnership
with Apollo transmitted data at the speed of 7.2Tbps using the 100G wavelength in
the year 2014.

Table 1: Selected Popular Existing Transatlantic Cable Systems

RFS Name of the Submarine


Owner
(Year) Cable Network
1999 Atlantic Crossing-1 (AC-1) Level 3
1999 Columbus-3 International consortium of carriers
Yellow (Level-3) / Atlantic
2000 Level 3
Crossing-2 (AC-2)
2000 Atlantis-2 International Consortium of carriers
2001 FLAG Atlantic-1 (FA-1) Global Cloud Xchange
Hibernia Networks (Columbia
2001 Hibernia Atlantic Ventures Corp.) Hibernia Networks
(Columbia Ventures Corp.)
2001 TAT-14 International consortium of carriers
2001 TGN-Atlantic Tata Communications
2003 Apollo Vodafone / Alcatel-Lucent

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The deployment of new transatlantic cable projects has emerged as the prime
focus areas over the last 10 years. The deployments was very slow/negligible over
the last decade owing to expected competitive and relatively challenging
environment which might be confront by the new deployed network on the
capacity as well as bandwidth front.

Table 2: Key Transatlantic Cable Systems planned between European Union and
Americas

Name of the Submarine


Owner
Cable Network
Brazil-Europe / Atlantic
Cable System-Europe Telebras
(ACSea-EUR)
Emerald Express Emerald Networks
Europe Link with Latin
Research community
America (ELLA)
Fibre Atlantic SemanticNet
Project Express Hibernia Networks (Columbia Ventures Corp.)
Transatlantic Consortium
International consortium of carriers
System / TAT-15
WASACE North (WASACE
WASACE Cable Company
Phase III)

Some of the major cable systems which has been planned to be deployed across
the region includes Fibre Atlantic, WASACE North (WASACE Phase III), Brazil-Europe
/Atlantic Cable System-Europe (ACSea-EUR). Brazil-Europe / Atlantic Cable System-
Europe (ACSea-EUR) for instance is estimated to have an investment of $185
million and would interconnect the Brazil region with European region.

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2.3 Transpacific Regional Market Overview and Analysis

Transpacific region basically includes the submarine cable network between the
Asia-Pacific region with the North American region. The region continues to witness
increased investment and has been in the prime focus in the recent years as it was
relatively less connected as compared to the other developed regions and also the
2 major emerging economies China and India belong to this region. The region
came into existence and became popular destination for investment post the
saturation and low investment period of 2000-2002.

The region boasts of currently 7 major deployed networks with the current
transmission speed of 20 Tbps.

The initial thrust for the deployment of network in the regions was mostly inclined
between US and Japan. However, in 1999 a network was built to connect China
with the US. Post the year 2008, the other emerging and previously relatively low
connectivity countries like Thailand, Vietnam, Malaysia, Taiwan, Philippines, South
Korea etc have been connected by Trans Pacific Express and Asia-America Gateway
cables, which has inturn resulted in the improving the global connectivity for these
regions as well as reducing bandwidth costs to cater to the increasing requirements
of these emerging markets.

Table 3: Selected Popular Existing Transpacific Cable Systems

RFS Name of the Submarine Cable


Owner
(Year) Network
2000 Pacific Crossing-1 (PC-1) NTT
China-US Cable Network
2001 Consortium of carriers
International
Japan-US Cable Network
2001 Consortium of carriers
International
2002 TGN-Pacific Tata Communications
Trans Pacific Express (TPE)
2008 International consortium of Consortium of carriers
carriers
Asia-America Gateway (AAG)
2010 Consortium of carriers
International
Pacnet / Google / Bharti / Global
2010 Unity / EAC Pacific
Transit (Time dotCom) / KDDI /SingTel

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The region is witnessing an upward trend towards increasing deployment. Also, the
operators are focusing on the deployment of additional capacity based on the
segmentation as per the requirements across these regions.

Table 4: Key Transatlantic Cable Systems planned in the Transpacific region

Name of the Submarine Cable


Owner
Network
China Mobile, China Telecom, Global Transit,
Faster
Google, KDDI, and Singtel
China Mobile, China Telecom, China Unicom,
New Cross Pacific (NCP)
Chunghwa Telecom and KT
Pacific Cloud Xchange (PCX) Global Cloud Xchange (Reliance Globalcom)
Globe Telecom, GTI Corporation, Hawaiian
SEA-US Telecom, Teleguam Holdings, RAM Telecom
International, and PT Telekomunikasi

Some of the major cable systems planned to be deployed in the region includes
SEA-US, Pacific Cloud Xchange (PCX), Faster etc. The Chinese telcos have been
active in the deployment of the network in the region.

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2.4 Oceania Regional Market Overview and Analysis

Oceania region (comprising of New Zealand and Australia) has witnessed a strong
growth in the international bandwidth requirement in the recent years. The
demand for international bandwidth is expected to be relatively on the higher side
as compared to the developed regions owing to the increasing investments to
facilitate the growth in broadband penetration across the region.

The Ultra-Fast Broadband (UFB) initiative of New Zealand aims to provide


download speed of 100Mbps and above by 2020 to more than 75% of its customers.
Similarly the Australian National Broadband Network (NBN) also aims to provide
download speed of more than 1Gbps to 90% of its population by 2021.

The region boasts of currently 6 major deployed networks with the current
transmission speed of 5 Tbps.

The bandwidth prices in the Australian sub-region are higher as compared to the
other developed region, however for New Zealand it is somewhat closer to the
international norms. The 4 leading telecom operators in the region namely Singtel
Optus, Telstra, Vodafone/Vodafone Hutchison Australia and Telecom New control
more than 90% of the total consumer market.

Table 5: Selected Popular Existing Oceania Cable Systems

RFS Name of the Submarine


Owner
(Year) Cable Network
International consortium of
1997 Jasaurus
carriers
International consortium of
1999 SEA-ME-WE-3
carriers
Southern Cross Cable Network
2001 TNZ / Singtel Optus / Verizon
(SCCN)
International consortium of
2002 Australia-Japan Cable (AJC)
carriers
2008 Endeavour Telstra
2009 Pipe Pacific Cable-1 (PPC-1) TPG Telecom

Global Cloud Xchange plans to deploy a transpacific Pacific Cloud Xchange (PCX)
cable with aim to make it operational by 2015. The region continues be the hot
target for investment in the submarine cable networks with leadings companies
such as Google, Microsoft, Facebook etc have been focusing upon the software
defined wide area networks the and have made significant investments in some of
the leading cable system existing in the region such as Southeast Asia-Japan cable
and transpacific Unity cable.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 19
Some of the major cable deployments across the region includes Australia-
Singapore Cable (ASC), Asia Pacific Express East (APX-East) etc.

Table 6: Key Transpacific Cable Systems planned in the Oceania region

Name of the Submarine Cable Network Owner


Asia Pacific Express East (APX-East) SubPartners
Asia Pacific Express West (APX-West) (formerly
SubPartners
Australia-Indonesia-Singapore Cable)
Nextgen Networks (Ontario
Australia-Singapore Cable (ASC)
Teachers‟ Pension Plan)
Hawaiki Hawaiki Cable
Trident Cable System Trident Subsea Cable Pty Ltd.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 20
2.5 North America and Latin America Regional Market Overview and Analysis

This region primarily comprises of the Latin American countries and the US, but the
international bandwidth requirements and demand concentrated towards US.

The region boasts of currently 4 major deployed networks with the current
transmission speed of 9 Tbps.

The regional requirements is primarily catered to the three privately-owned


geographic ring networks namely SAM-1(which is owned by Telefonica); GlobeNet
(Owned by Oi) and South American Crossing (which is owned by Level 3).

Majority of the demand for internet requirement is driven by requirement for the
bandwidth concentrated towards North America (particularly Miami) and the
transport pricing is also relatively much higher as compared to the Transatlantic
cable system- as much of the market is controlled by only the 3 cable network
owners mentioned above.

Table 7: Selected Popular Existing North America and Latin America Cable
Systems

Name of the Submarine Cable


RFS (Year) Owner
Network
2000 Americas-II Consortium
Private equity fund controlled by
2001 GlobeNet BTG Pactual
Grupo
2001 SAM-1 Telefonica
Level 3 (LANautilus (Telecom Italia)
2001 South American Crossing (SAC)
fiber pair

The increasing demand for bandwidth in the Latin American market is primarily
driven by Brazil, which accounts for more than 50% of bandwidth demand required
in the South American region.

Figure 5: Share of South American International Bandwidth Demand by Country,


2013

Source: Terabit Consulting

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 21
This is mainly due to the fact that it is witnessing a growth in the economic
conditions, which has also spurred in the demand from the telecommunications and
Internet services.

The Latin America market continues to witness strong growth in its internet
population base. The recent popularity of the social media and on-demand video
trends have also added a spark to this growth trend. The increasing demand for
accessing Facebook, Google and other popular sites will further drive the
increasing investment in the cable networks in the region.

Table 8: Key Cable Systems planned in the North America and Latin America
region

Name of the Submarine Cable Network Owner


America Movil-1 (AMX1) America Movil
Cable of the Americas Angola Cables
Pacific Caribbean Communications System
Consortium
(PCCS)
Seabras-1 Seaborn Networks (US)

In addition to this, there is also a strong plan for the cable systems linkages
between South America with the other regions primarily Europe and Pacific region.
Also, Telbras the Government owned administrator of Brazil‟s National Broadband
plan is also planning for a direct submarine cable network between South America
and Europe. The demand for increased bandwidth between the African region and
the Latin American region, may further lead to increased connectivity between the
two regions.

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2.6 Africa and Sub-Sahara Regional Market Overview and Analysis

The region continues to witness increasing demand for bandwidth over the least 2-
3 years owing to increased bandwidth and internet demand driven growth of the
economy in most of the countries of the region and relatively low/uncovered areas
which was already existing. Increased adoption of mobile phones is driving the
demand for bandwidth and operator‟s revenue. Also, financial support from leading
institutions such as African Development Bank and World bank etc, has contributed
to the increased lending for infrastructure deployments by the telcos and
infrastructure vendors in the region.

The region boasts of currently 9 major deployed networks with the current
transmission speed of ~2Tbps.

Table 9: Selected Popular Existing Africa and Sub-Sahara Cable Systems

RFS Name of the Submarine


Owner
(Year) Cable Network
1993 SAT-2 Consortium
2002 SAT-3/SAFE Consortium
East Africa Marine
2009 TEAMS Ltd. / Etisalat
System (TEAMS)
IPS (Aga Khan Fund) / Remgro / Herakles
2009 Seacom Telecom / Convergence Partners / Shanduka
Group
East African Submarine Consortium / West Indian Ocean Cable
2010
Cable System (EASSy) Company (WIOCC)
2010 Glo-1 Globacom
2010 Main One Main Street Technologies
Africa Coast to Europe
2012 Consortium
(ACE)
West Africa Cable
2012 Consortium
System (WACS)

Most of the cable networks in the region is owned by a consortium of operators or


sometimes by the large operators themselves. The region was relatively under-
penetrated and less focused upon till the recent times as most of the operators in
the region lacked resources and financial support to deploy the network. Also, the
lack and weak demand from the domestic markets, has also resulted in the region
being relatively less focused for the cable network deployments.

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The region continues to offer a huge potential for the operators in the region, as
the demand from the domestic market is bound to increase, owing to increase in
the broadband demand from the users in the region.

Table 10: Key Cable Systems planned in Africa and Sub-Sahara region

Name of the Submarine Cable Network Owner


South Atlantic Cable System (SACS) (formerly Angola-
Angola Cables / Telebras
Brazil)
South Atlantic Express
South Atlantic Express (SAEx)
Cable Ltd

Sooner or later, the region will witness increased connectivity to the European and
North American region, which would further increase the competition for
bandwidth capacity and pricing in the country.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 24
2.7 South East Asia and Middle East Regional Market Overview and Analysis

The demand for bandwidth in the region has been driven by the growth in the
demand from the key countries like India, Saudi Arabia, UAE etc.The growth has
been primarily be driven by India, owing to the strong growth in the domestic
demand and its strong industry associations with the companies located in North
America, Europe and Latin American region.

The region boasts of currently 9 major deployed networks with the current
transmission speed of ~2 Tbps. The cable market has witnessed in the recent times
increased traction for deployment of cable between the region with Europe by
avoiding the hindrance of crossing terrestrially through Egypt.

Table 11: Selected Popular Existing South East Asia and Middle East Cable
Systems

Name of the
RFS (Year) Submarine Cable Owner
Network
FLAG Europe-Asia Global Cloud Xchange (Reliance
1997
(FEA) Globalcom)
1999 SEA-ME-WE 3 Consortium
2002 i2i Bharti Airtel
2002 SAT-3/SAFE Consortium
2004 TGN-TIC Tata Communications
2005 SEA-ME-WE-4 Consortium
Global Cloud Xchange (Reliance
2006 Falcon
Globalcom)
IPS (Aga Khan Fund) / Remgro / Herakles
2009 Seacom / TGN Eurasia Telecom / Convergence Partners /
Shanduka Group / Tata Communications
2010 I-Me-We Consortium
Europe India Gateway
2011 Consortium
(EIG)
Gulf Bridge
Gulf Bridge International / Orascom
2012 International (GBI)/
Holdings
MENA

Some of the major submarine cable network which exists in the region are FLAG,
Falcon, SeaMeWE-3 and SeaMeWE-4 etc. A major cable system which would be
coming upon soon is the SeaMeWE-5 cable system which will be operational soon.

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SeMeaWE-5 is with a fiber network spanning across ~25,000 kms will connect across
the major regions such as.

Another network Bay of Bengal Gateway (BBG) cable system, will be connecting
across the major centers across Sri Lanka, Oman, India, UAE and Malaysia. Another
cable system known as India Cloud Xchange (ICX) will be connecting Singapore and
India with its ~5,000kms network.

Table 12: Key Cable Systems planned in South East Asia and Middle East region

Name of the Submarine Cable Network Owner


Asia-Africa-Europe-1 (AAE-1) Consortium
Bay of Bengal Gateway (BBG) Consortium
India Cloud Xchange (ICX) Global Cloud Xchange (GCX)
SEA-ME-WE 5 Consortium

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3. Overview of Suppliers

The suppliers of the submarine cable industry can be categorized into two broad
categories namely System Suppliers and Upgrade Suppliers.

3.1 System Suppliers

These include the companies which are involved in the supply of components and
deployment of networks of the submarine cable systems.

The future of the submarine cable system in largely dependent on the huge capital
requirement and increase investment in the technological front. This has further
resulted in only a restricted number of companies being involved in the submarine
cable system involvement. The early era of the submarine fiber cable systems was
divided amongst three major groups like predecessors of Alcatel-Lucent, the
predecessors of TE SubCom and the suppliers community from Japan. However,
owing to increased hindrance by being faced by the key companies like KDD-SCS,
Hitachi Cable, OCC etc, resulted in the decline in the market of the Japanese
community. However, NEC still continues to be leading player in the Asia-Pacific
region in the submarine cable market from the Japanese community, with TE Sub
Com able to maintain uniform market share and Alcatel Lucent continuing to
become stronger in the recent times.

Figure 6: Market Share for Supply of New Systems, 2004-2014*

* (Primary Contracts Only; Excluding Subcontracts)


Source: Terabit Consulting

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Huawei Marine Networks- the joint venture between Huawei Technologies and
Global Maine Systems in 2008, further resulted in the increase in the dynamicity of
the submarine supplier markets, as it bid very aggressively for new projects as far
as cost offerings were concerned. This segment is interesting poised considering
the factors such as strategy of Huawei Marine networks (which can be partnership
with leading Chinese manufacturers, which can give it with a cost effective
advantage), the e mergence of Alcatel-Lucent‟s submarine cable division through
its IPO and the emergence and continues growing of the equipment only suppliers
like Infinera, Cienna etc in the coming years.

3.2 Upgrade Suppliers

This includes the companies which are involved in the repair and upgradation of
the submarine cable networks.

Capacity upgrades has become a key requirement and mandate for the existing as
well as planned submarine cable system networks. The provisioning of terminal
equipments for upgradation (which is almost independent of the requirement of
investment in repeater design, manufacturing of cables) has resulted in the most of
the suppliers to also be engaged in the up gradation of the existing networks.

Owing to the robust and the current deployment of the networks considering the
future demand for bandwidth upgrade, the market for the upgrade suppliers is
bound to become increasingly more attractive for the vendors.

Table 13: Key 100G Upgrade Projects for Equipment Suppliers in 2013 and 2014

Vendor Name Key Submarine Cable System route


Alcatel-Lucent Apollo, Asia-America Gateway, TEAMS, EASSy
Huawei Marine System Jakarta-Singapore 3rd Route
Fujitsu JaKa2LaDeMa
NEC Asia-Pacific Cable Network-2
Source: Terabit Consulting

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4. Major Submarine Cable Networks

4.1 ACS Alaska-Oregon Network (AKORN)

Overview: The AKORN network became operational in April 2009 and the overall
cost of the project is estimated to be $105 million.

Owners: Alaska Communications Systems Group

Cable Length: 3,000kms

RFS (Year) : 2009

Landing Points (Nos): 4- Anchorage, Alaska (US); Florence, Oregon (US); Homer,
Alaska (US); Nikiski, Alaska (US)

Figure 7: ACS Alaska-Oregon Network (AKORN) submarine cable route-map and


Landing Stations

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4.2 Aden-Djibouti

Overview: The submarine cable is owned by leading 5 telecom operators and


became functional in 1994.

Owners: Djibouti Telecom, TeleYemen, Tata Communications, Orange, Telecom


Italia Sparkle

Cable Length: 266 kms

RFS (Year): 1994

Landing Points (Nos): 2- Aden (Yemen); Djibouti City (Djibouti)

Figure 8: Aden-Djibouti submarine cable route-map and Landing Stations

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4.3 Adria-1

Overview: The submarine cable is owned by leading 2 telecom operators namely


T-Hrvatski Telekom, Albania Telecom and became functional in September 1996.

Owners: T-Hrvatski Telekom, Albania Telecom

Cable Length: 440 kms

RFS (Year): 1996

Landing Points (Nos): 3- Corfu (Greece); Dubrovnik (Croatia); Durres (Albania)

Figure 9: Adria-1 submarine cable route-map and Landing Stations

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4.4 ALASIA

Overview: The network is owned by Syria Telecommunications and Cyta Global


(the international wholesale unit of Cyta), which interconnects the Cyprus with its
neighbouring countries.

Owners: Cyta, Syrian Telecommunications

Cable Length: NA

RFS (Year): Q1-2016

Landing Points (Nos): 2- Pentaskhinos (Cyprus); Tartous (Syria)

Figure 10: ALASIA submarine cable route-map and Landing Stations

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4.5 ALBA-1

Overview: The network became operational in August 2012 and provides


connectivity across in the Caribbean region.

Owners: Transbit, Telecom Venezuela

Cable Length: 1,860 kms

RFS (Year): 2012

Landing Points (Nos): 4- La Guaira (Venezuela); Ocho Rios (Jamaica); Santiago de


Cuba (Cuba); Siboney (Cuba)

Figure 11: ALBA-1 submarine cable route-map and Landing Stations

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4.6 Aletar

Overview: The cable network became operational in the year April 2007 and
provides connectivity between the 2 countries of the middle-east, namely Syria
and Egypt.

Owners: Syrian Telecommunications Establishment, Telecom Egypt, Liban Telecom

Cable Length: 787 kms

RFS (Year): 1997

Landing Points (Nos): 2- Alexandria (Egypt); Tartous (Syria)

Figure 12: Aletar submarine cable route-map and Landing Stations

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4.7 ALPAL-2

Overview: The network became operational in the month of July 2002 is owned by
some of the leading global telecom operators like Orange, Telefonica etc and
provides connectivity between Algeria and Spain.

Owners: Telecom Italia Sparkle, Orange, Algerie Telecom, Telefonica

Cable Length: 312 kms

RFS (Year): 2002

Landing Points (Nos): 2- El Djemila (Algeria); Ses Covetes (Spain)

Figure 13: ALPAL-2 submarine cable route-map and Landing Stations

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4.8 Angola Domestic Network System (ADONES)

Overview: The submarine cable network which is wholly owned by Angola


Telecom, provides connectivity across 8 cities within Angola.

Owners: Angola Telecom

Cable Length: 1,600 kms

RFS (Year): 2008

Landing Points (Nos): 8- Benguela, Cabinda, Luanda, Lucira, N'zeto, Namibe, Porto
Amboim, Soyo (All in Angola)

Figure 14: ADONES submarine cable route-map and Landing Stations

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4.9 Apollo

Overview: The Apollo submarine cable system comprises of 2 transatlantic fibre


optic cables; whereby Apollo North connects the United Kingdom and the USA and
Apollo South directly connects France and the USA. It offers point to point 10Gbit/s
and 100Gbit/s wavelengths between the major cities and carrier pops on the US
Eastern seaboard and Western Europe.

Apollo Submarine Cable System Limited, a UK based company jointly owned by


Vodafone and Alcatel-Lucent, owns and operates this network.

Owners: Apollo Submarine Cable System Limited

Cable Length: 13,000 kms

RFS (Year): 2003

Landing Points (Nos): 4- Bude (United Kingdom); Lannion (France); Manasquan,


New Jersey (United States); Shirley, New York (United States)

Figure 15: Apollo submarine cable route-map and Landing Stations

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4.10 Aqualink

Overview: The submarine cable system owned by Telstra provides became


operational in December 2001 and provides connectivity across major cities
between New Zealand.

Owners: Telstra

Cable Length: N.A.

RFS (Year): 2001

Landing Points (Nos): 7- Auckland, Canterbury, Manawatu-Wanganui, Marlborough,


Taranaki, Waikato, Wellington (All in New Zealand)

Figure 16: Aqualink submarine cable route-map and Landing Stations

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4.11 West African Cable System (WACS)

Overview: WACS is a 4 -fiber pair system with total length of approx. 16,000Km;
and is complemented with 15 terminal stations formed by a consortium of leading
17 telecom operators. The network became functional in May 2012.

Owners: Consortium of Telecom Operators (Broadband Infraco, Telkom South


Africa, Vodacom DRC, MTN Group, Tata Communications, Togo Telecom, Telecom
Namibia, Office Congolais de Poste et Télécommunication, Congo Telecom,
Portugal Telecom, Angola Cables, Cape Verde Telecom, Vodafone Espana,
Vodafone, Neotel, PCCW, Botswana Fibre Networks).

Cable Length: 14,916 kms.

RFS (Year): 2012

Landing Points (Nos): 14- Abidjan (Côte d'Ivoire); Accra (Ghana); El Goro, Canary
Islands (Spain); Highbridge (United Kingdom); Lagos Nigeria); Limbe (Cameroon);
Lome(Togo); Muanda Congo, Dem. Rep.); Palmarejo (Cape Verde); Point Noire
(Congo, Rep.); Sangano (Angola); Seixal (Portugal); Swakopmund (Namibia);
Yzerfontein (South Africa)

Figure 17: WACS submarine cable route-map and Landing Stations

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4.12 Trident Subsea Cable

Overview: This submarine cable network connects Perth to Onslow, Karratha and
Port Hedland following the North West Coast Highway. It also interconnects
Onslow with the subsea section and form a terrestrial ring and be called the
Southern Trident ring.

Owners: Trident Subsea Cable

Cable Length: N.A.

RFS (Year): Q1-2017

Landing Points (Nos): 2 – Onslow and Perth (both in Australia)

Figure 18: Trident Subsea Cablesubmarine cable route-map and Landing


Stations

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4.13 Transworld (TW1)

Overview: Transworld is a joint venture of Orascom Telecom Holding, Saif Group


and Omzest Group of Oman Owners: TransWorld Associates (Pvt.) Limited, owns
this submarine cable network; which became operational in June 2006.

Owners: Transworld

Cable Length: 1,300 kms.

RFS (Year): 2006

Landing Points (Nos): 3- Al Seeb (Oman); Fujairah (United Arab Emirates); Karachi
(Pakistan)

Figure 19: Transworld (TW1) submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 41
4.14 Trans-Pacific Express (TPE) Cable System

Overview: The network which became operational in July 2008 is owned by a


consortium of telcos and is a main link between East Asia and America. China
Telecom is responsible for dealing with the capacity allocation and activation
within TPE.

Owners: China Telecom, China Unicom, Chunghwa Telecom, KT, Verizon, NTT,
AT&T

Cable Length: 17,000 kms.

RFS (Year): 2008

Landing Points (Nos): 6- Chongming (China); Keoje (Korea, Rep.); Maruyama


(Japan); Nedonna Beach, Oregon (United States); Qingdao (China); Tanshui
(Taiwan)

Figure 20: Trans-Pacific Express (TPE) Cable System submarine cable route-map
and Landing Stations

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4.15 TE North/TGN-Eurasia/SEACOM/Alexandros

Overview: The network became operational in July 2011 and is owned and
operated upon by 3 telcos namely Tata Communications, SEACOM and Telecom
Egypt. Two fiber pairs is owned by Tata Communications (referred to as TGN-
Eurasia by the company), SEACOM owns one fiber pair and Telecom Egypt operates
TE North, but has sold fiber pairs to several parties.

Owners: Telecom Egypt, Cyta, SEACOM, Tata Communications

Cable Length: 3,634 kms

RFS (Year): 2011

Landing Points (Nos): 3- Abu Talat (Egypt); Marseille (France); Pentaskhinos


(Cyprus)

Figure 21: TE North/TGN-Eurasia/SEACOM/Alexandrossubmarine cable route-


map and Landing Stations

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4.16 Thailand-Indonesia-Singapore (TIS)

Overview: The network owned by the consortia of 3 leading global telcos became
operational in November 2003 and is a major connecting link in the South-East
Asian region.

Owners: SingTel, Communications Authority of Thailand, Telkom Indonesia

Cable Length: 968km

RFS (Year): 2003

Landing Points (Nos): 3- Batam (Indonesia); Changi North (Singapore); Songkhla


(Thailand)

Figure 22: TIS submarine cable route-map and Landing Stations

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4.17 TERRA SW

Overview: The network which is owned by GCI provides fiber optic network
connecting all the major Alaska‟s population center.

Owners: GCI

Cable Length: N.A.

RFS (Year): 2012

Landing Points (Nos): 11- Fish Camp, Homer, Igiugig, Illiamna, Kokhanok,
Newhalem, Nondalton, Pedro Bay, Pile Bay, Port Alwsorth, Williamsport (All in
Alaska United States)

Figure 23: TERRA SW submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 45
4.18 The East African Marine System (TEAMS)

Overview: Owned by Etisalat and TEAMS, this submarine cable network


interconnects UAE and Kenya (region of Middle East and African region)

Owners: Etisalat, TEAMS Ltd.

Cable Length: 4,900 kms

RFS (Year): 2009

Landing Points (Nos): 2- Fujairah (United Arab Emirates); Mombasa (Kenya)

Figure 24: TEAMS submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 46
4.19 Tata TGN-Western Europe

Overview: This network became operational in June 2002, is owned by Tata


Communications and predominantly provides connectivity between the countries in
the European region.

Owners: Tata Communications

Cable Length: 3,578 kms

RFS (Year): 2002

Landing Points (Nos): 3- Bilbao (Spain); Highbridge (United Kingdom); Seixal


(Portugal)

Figure 25: Tata TGN-Western Europe submarine cable route-map and Landing
Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 47
4.20 Tata TGN-Pacific

Overview: The network owned by Tata Communications pre-dominantly provides


interconnectivity between East- Asian region (Jana) and North American region.

Owners: Tata Communications

Cable Length: 22,300 kms

RFS (Year): 2002

Landing Points (Nos): 5- Emi (Japan); Hillsboro, Oregon (United States); Los
Angeles, California( United States); Piti (Guam); Toyohashi (Japan)

Figure 26: Tata TGN-Pacific submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 48
4.21 Tata TGN-Intra Asia (TGN-IA)

Overview: The network owned by Tata Communications pre-dominantly provides


interconnectivity between East- Asian region countries and became operational in
March 2009.

Owners: Tata Communications

Cable Length: 6,700 kms

RFS (Year): 2009

Landing Points (Nos): 4- Ballesteros (Philippines); Changi North (Singapore); Deep


Water Bay (Hong Kong); Vung Tau (Vietnam)

Figure 27: TGN-IA submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 49
4.22 Tata TGN-Gulf

Overview: The network owned by Tata Communications pre-dominantly provides


interconnectivity between Middle-East countries and became operational in
February 2012.

Owners: Tata Communications

Cable Length: 4,031 kms

RFS (Year): 2012

Landing Points (Nos): 6- Al Khobar (Saudi Arabia); Al-Kheesa (Qatar); Amwaj Island
(Bahrain); Dubai (United Arab Emirates); Fujairah (United Arab Emirates);
Qalhat(Oman)

Figure 28: Tata TGN-Gulf submarine cable route-map and Landing Stations

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4.23 TAT-14

Overview: The TAT-14 transatlantic cable system provides connectivity for United
States to the other countries which includes United Kingdom, France, The
Netherlands, Germany, and Denmark. The cable systems comprises of four fiber
pairs and traffic can be configured point to point or in (protected) ring
configuration. The cable system has a total design capacity of 9.38Tb/s and a total
system (lit) capacity of 3.15Tb/s.

Owners: Consortium of telcos (BT, Verizon, Deutsche Telekom, Orange, Sprint,


TeliaSonera, Level 3, KPN, Telenor, Etisalat, OTEGLOBE, SingTel, KDDI, Softbank
Telecom, Zayo Group, Portugal Telecom, Slovak Telekom, TDC, Telus, Tata
Communications, Telefonica, AT&T, Belgacom, Elisa Corporation, Cyta,
Rostelecom, Vodafone)

Cable Length: 15,295 kms

RFS (Year): 2001

Landing Points (Nos): 7- Blaabjerg (Denmark); Bude (United Kingdom); Katwijk


(Netherlands); Manasquan, New Jersey (United States); Norden (Germany); St.
Valéryn (France); Tuckerton, New Jersey ( United States)

Figure 29: TAT-14 submarine cable route-map and Landing Stations

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4.24 Tampnet Offshore FOC Network

Overview: The Tampnet Offshore FOC Network provides connectivity between


Norway, UK and Denmark.

The cable system has a total design capacity of 9.38Tb/s and a total system (lit)
capacity of 3.15Tb/s.

Owners: Tampnet

Cable Length: 1,751 kms

RFS (Year):1999

Landing Points (Nos): 11- Aberdeen (United Kingdom); Copenhagen (Denmark);


Draupner (Norway); Ekofisk (Norway); Esbjerg (Denmark); Kårstø (Norway);
Lowestoft (United Kingdom); Murdoch (Norway); Oslo (Norway); Ula (Norway);
Valhala (Norway)

Figure 30: Tampnet Offshore FOC Network submarine cable route-map and
Landing Stations

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4.25 Suriname-Guyana Submarine Cable System (SG-SCS)

Overview: The submarine cable system which became operational in July 2010,
provides connectivity amongst the Caribbean region.

Owners: Guyana Telephone and Telegraph (GT&T), Telesur

Cable Length: 1,249 kms

RFS (Year): 2010

Landing Points (Nos): 3- Chaguaramas (Trinidad and Tobago); Georgetown


(Guyana); Totness (Suriname)

Figure 31: SG-SCS submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 53
4.26 Southern Cross Cable Network (SCCN)

Overview: The submarine cable system which became operational in late 2000,
and consists of two separate submarine cable paths laid across different routes
between Australia and Western Coast of United States. The „Northern‟ route links
Australia, Fiji, Hawaii and the US Mainland, whereas the „Southern‟ route links
Australia, through New Zealand, to Hawaii and on to the US Mainland.

The network contains six optical fibres (3 fibre pairs) between Sydney and Hawaii,
and eight fibres (4 fibre pairs) between Hawaii and the US West Coast. Southern
Cross was originally designed to deliver 120Gbps of fully protected capacity
(240Gbps across the network). Following the introduction of the latest 40Gbps and
100Gbps technology the current system potential is estimated at >12 Tbps. The
current expansion (Phase H) will increase total lit network capacity to 2.7 Tbps
from December 2013, and will utilise 40Gbps and 100Gbps wavelength technology.

Owners: Spark New Zealand, SingTel Optus, Verizon

Cable Length: 30,500 kms

RFS (Year): 2000

Landing Points (Nos): 9- Alexandria (Australia); Brookvale (Australia); Hillsboro,


Oregon (United States); Kahe Point, Hawaii (United States); Morro Bay, California
(United States); Takapuna (New Zealand); Spencer Beach, Hawaii ( United States);
Suva (Fiji); Whenuapai (New Zealand)

Figure 32: SCCN submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 54
4.27 Southern Caribbean Fiber

Overview: This sub marine fiber network interconnects the major population
centers across the Caribbean region and became operational in September 2006.

Owners: Digicel

Cable Length: 30,500 kms

RFS (Year): 2006

Landing Points (Nos): 10- Basseterre (Saint Kitts and Nevis); Canefield (Dominica);
Chaguaramas (Trinidad and Tobago); Kingstown (Saint Vincent and the
Grenadines); Le Lamentin (Martinique); Needham‟s Point (Barbados); Rodney Bay
(Saint Lucia); St. Croix ,Virgin Islands (United States);St. George‟s (Grenada); St.
John‟s (Antigua and Barbuda)
Figure 33: Southern Caribbean Fiber submarine cable route-map and Landing
Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 55
4.28 Southeast Asia Japan Cable (SJC)

Overview: This cable network owned by a consortium of leading telcos which


includes China Mobile, SIngTel, Telekom Indonesia etc provides connectivity in the
Eastern Asia countries.

Owners: Consortium of telcos (Globe Telecom, Google, KDDI, Telkom Indonesia,


SingTel, China Telecom, TOT, China Mobile, Chunghwa Telecom, Brunei
International Gateway, SingTel Optus)

Cable Length: 8,900 kms

RFS (Year): 2013

Landing Points (Nos): 7- Chikura (Japan); Chung Hom Kok (Hong Kong); Nasugbu
(Philippines); Shantou (China); Songkhla (Thailand); Telisai (Brunei); Tuas
(Singapore)

Figure 34: SJC submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 56
4.29 South American Crossing (SAC)/Latin American Nautilus (LAN)

Overview: Level 3 owns three fiber pairs on the systems, which it calls South
American Crossing. Telecom Italia owns one fiber that it refers to as Latin
American Nautilus. Only Level 3 has capacity on the branch to Colombia. The
network became operational in September 2000.

Owners: Consortium of telcos Level 3, Telecom Italia Sparkle

Cable Length: 20,00 kms

RFS (Year): 2000

Landing Points (Nos): 7- Buenaventura (Colombia); Colón (Panama); Fort Amador


(Panama); Fortaleza (Brazil); Las Toninas (Argentina); Lurin (Peru); Puerto Viejo
(Venezuela); Rio de Janeiro (Brazil); Santos (Brazil); St. Croix (Virgin Islands,
United States); Valparaíso (Chile)

Figure 35: SAC/LAN submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 57
4.30 South America-1 (SAm-1)

Overview: Owned by Telefonica, this submarine cable system provides network


interconnectivity primarily in the Latin American region since March 2001.

Owners: Telefonica

Cable Length: 25,000 kms

RFS (Year): 2001

Landing Points (Nos): 7- Arica (Chile); Barranquilla (Colombia); Boca Raton,


Florida (United States); Fortaleza (Brazil); Las Toninas (Argentina); Lurin (Peru);
Mancora (Peru); Puerto Barrios (Guatemala); Puerto San Jose (Guatemala); Punta
Carnero (Ecuador); Rio de Janeiro (Brazil); Salvador (Brazil); San Juan, Puerto Rico
(United States); Santos (Brazil); Valparaíso (Chile)

Figure 36: Sam-1 submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 58
4.31 Sistem Kabel Rakyat 1Malaysia (SKR1M)

Overview: Telekom Malaysia which owns the networks plan to provide


connectivity across the major centers in Malaysia through this submarine cable
network from 2017 onwards.

Owners: Telekom Malaysia

Cable Length: 3,500 kms

RFS (Year): 2017

Landing Points (Nos): 7- Bintulu, Cherating, Kota Kinabalu, Kuching, Mersing, Miri
(All in Malaysia)

Figure 37: SKR1M submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 59
4.32 SEA MEA WE-5

Overview: The submarine cable network owned by a consortium of leading global


telcos will provide connectivity across some of the major countries in Asia-Pacific
region, Middle East and European region.

Owners: Consortium of telcos (Telekom Malaysia, Bangladesh Telegraph and


Telephone Board (BTTB), China Mobile, China Telecom, Orange, Myanmar Post and
Telecommunication, Saudi Telecom, Sri Lanka Telecom, Telkom Indonesia, TOT,
SingTel, Telecom Italia Sparkle, TeleYemen, China Unicom, du, Turk Telekom
International, TransWorld Associates (Pvt.) Limited

Cable Length: 20,000 kms

RFS (Year): 2016

Landing Points (Nos): 18- Abu Talat (Egypt); Al Hudaydah (Yemen); Barka (Oman);
Batam (Indonesia); Catania (Italy); Djibouti City (Djibouti); Fujairah (United Arab
Emirates); Karachi (Pakistan); Kuakata (Bangladesh); Matara (Sri Lanka); Melaka
(Malaysia); Mumbai (India); Ngwe Saung (Myanmar); Satun (Thailand); Toulon
(France); Tuas (Singapore); Yanbu (Saudi Arabia); Zafarana (Egypt)

Figure 38: SEA MEA WE-5 submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 60
4.33 SEA ME WE-4

Overview: This submarine cable system linking South East Asia to Europe via the
Indian Sub-Continent and Middle East. The project aims to take these regions to
the forefront of global communication by significantly increasing the bandwidth
and global connectivity of users along its route between Singapore and France.

The contract is being awarded jointly to Alcatel Submarine Networks, France and
Fujitsu Ltd., Japan and the estimated project cost is of the order of US$ 500
million.

Owners: Consortium of Telcos (Bangladesh Telegraph and Telephone Board


(BTTB), Orange, SingTel, Telecom Italia Sparkle, Tata Communications, PT
Indonesia Satellite Corp., Telekom Malaysia, Airtel (Bharti), Sri Lanka Telecom,
Etisalat, Saudi Telecom, Communications Authority of Thailand, Tunisia Telecom,
Verizon, Pakistan Telecommunications Company Ltd., Telecom Egypt)

Cable Length: 20,000 kms

RFS (Year): 2005

Landing Points (Nos): 16- Alexandria (Egypt); Annaba (Algeria); Bizerte (Tunisia);
Chennai (India); Colombo (Sri Lanka); Cox‟s Bazar (Bangladesh); Fujairah (United
Arab Emirates); Jeddah (Saudi Arabia); Karachi (Pakistan); Marseille (France);
Melaka (Malaysia); Mumbai (India); Palermo (Italy); Satun (Thailand); Suez (Egypt);
Tuas (Singapore)

Figure 39: SEA MEA WE-4 submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 61
4.34 SAT-3/WASC

Overview: SAT-3/WASC submarine cable system cable links some of the major
countries of Africa (Western African region) to European region (like Portugal and
Spain).

Owners: Consortium of Telcos (Telkom South Africa, Tata Communications, AT&T,


BT, Camtel, Angola Telecom, Ghana Telecommunications Company, Mauritius
Telecom, Verizon, Nitel, OPT, Belgacom, Sprint, SingTel, KPN, Orange, Telecom
Italia Sparkle, Telecom Namibia, Telekom Malaysia, Telefonica, China Telecom,
Chunghwa Telecom, Cote d‟Ivoire Telecom, Deutsche Telekom, Maroc Telecom,
KT, Portugal Telecom, PCCW, Telstra, Cyta, Neotel, Vodafone)

Cable Length: 14,350 kms

RFS (Year): 2002

Landing Points (Nos): 11- Abidjan (Côte d'Ivoire); Accra (Ghana); Alta Vista,
Canary Islands (Spain); Cacuaco (Angola); Cotonou (Benin); Dakar (Senegal); Douala
(Cameroon); Lagos (Nigeria); Libreville (Gabon); Melkbosstrand (South Africa);
Sesimbra (Portugal)

Figure 40: SAT-3/WASC submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 62
4.35 SAFE

Overview: The submarine cable system provides interconnectivity between the


South Asian countries with South Africa.

Owners: Consortium of Telcos (Orange, Telekom Malaysia, Telkom South Africa,


Tata Communications, AT&T, BT, Camtel, Angola Telecom, Ghana
Telecommunications Company, Mauritius Telecom, Verizon, Nitel, OPT, Telefonica,
Belgacom, China Telecom, Chunghwa Telecom, Cote d‟Ivoire Telecom, Maroc
Telecom, KT, KPN, SingTel, Sprint, Telecom Italia Sparkle, Telecom Namibia,
Telstra, PCCW, Sonatel, Neotel, Vodafone)

Cable Length: 13,500 kms

RFS (Year): 2002

Landing Points (Nos): 6- Baie Jacotet (Mauritius); Cochin (India); Melkbosstrand


(South Africa); Mtunzini (South Africa); Penang (Malaysia); Saint Paul (Réunion)

Figure 41: SAFE submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 63
4.36 PLDT Domestic Fiber Optic Network (DFON)

Overview: The PLDT Domestic Fiber Optic Network (DFON) submarine cable
network connects the major centers within Philippines.

Owners: PLDT

RFS: 1997

Length: 11,100kms

Landing points: 13- Butuan City, Cadiz City, Cagayan de Oro, Calbayog, Cebu,
Dumaguete, Legazpi City, Masbate City, Nasugbu, Ormoc, Ozamiz City,
Pinamalayan, Roxas (All in Philippines)

Figure 42: PDLT DFON submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 64
4.37 Pan-American Crossing (PAC)

Overview: The submarine cable network connects the major countries of Central
America, Latin America with the United States.

Owners: Level 3

RFS: 2000

Length: 10,000kms

Landing points: 5- Fort Amador (Panama); Grover Beach, California (United


States); Mazatlán (Mexico); Tijuana (Mexico); Unqui (Costa Rica)

Figure 43: PAC submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 65
4.38 Pan American (PAN-AM)

Overview: The submarine cable network which became functional in early 1999
connects Central and Latain America.

Owners: Consortium of Telcos (AT&T, Telefonica del Peru, Softbank Telecom,


Telecom Italia Sparkle, Sprint, CANTV, Tata Communications, Telefónica de
Argentina (Speedy), Telstra, Verizon, Entel Chile, Telecom Argentina, Telconet,
Cable & Wireless Communications, CorporacionNacional de Telecommunicaciones,
Columbus Networks, Embratel)

RFS: 1999

Length: 7,050 kms

Landing points: 10- Arica (Chile); Baby Beach (Aruba); Barranquilla (Colombia);
Colón (Panama); Lurin (Peru); Panama City (Panama); Punta Carnero (Ecuador);
PuntoFijo (Venezuela); St. Croix, Virgin Islands (United States); St. Thomas, Virgin
Islands (United States)

Figure 44: PAN-AM submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 66
4.39 Pacific Caribbean Cable System (PCCS)

Overview: The submarine cable network which became functional in May 2015
and interconnects the countries in the Central American region.

Owners: Cable & Wireless Communications, Telconet, Telefonica, Setar, United


Telecommunication Services (UTS)

RFS: 2015

Length: 6,000 kms

Landing points: 8- Balboa (Panama); Cartagena (Colombia); Hudishibana (Aruba);


Jacksonville, Florida (United States); Manta (Ecuador); Maria Chiquita (Panama);
San Juan, Puerto Rico (United States); Tortola, Virgin Islands (U.K.)

Figure 45: PCCS submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 67
4.40 New Cross Pacific (NCP) Cable System

Overview: The submarine cable network connects the countries in the Asia-Pacific
region with the North America.

Owners: China Telecom, China Unicom, Chunghwa Telecom, KT, China Mobile

RFS: 2017

Length: 13,618 kms

Landing points: 4- Chongming (China); Florence, Oregon (United States);


Maruyama (Japan); Nanhui (China)

Figure 46: NCP submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 68
4.41 Middle East North Africa (MENA) Cable System/Gulf Bridge International

Overview: The submarine cable network provides connectivity across countries in


the Middle East region. MENA owns five fiber pairs on the cable. Gulf Bridge
International owns one fiber pair across the MENA cable that connects to the
company‟s Gulf ring system. MENA owns one fiber pair on the Gulf Bridge cable
from Oman to India.

Geographically, MENA cable is divided into three main segments namely the
Mediterranean Segment (which connects Egypt with Italy; Terrestrial Segment
which connects Egypt with itself; and South East Segment which connects Egypt
with Saudi Arabia, Oman and India.

Owners: MENA, Gulf Bridge International

RFS: 2014

Length: 8,000 kms

Landing points: 6- Abu Talat (Egypt); Al Seeb (Oman); Djibouti City (Djibouti);
Jeddah (Saudi Arabia); Mazara del Vallo (Italy); Zafarana (Egypt)

Figure 47: MENA Cable System/Gulf Bridge International submarine cable route-
map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 69
4.42 MedNautilus Submarine System

Overview: The MedNautilus interlocking loop system, links Italy, Greece, Turkey,
Israel, as well as the Pan-European and Atlantic wavelengths which link the major
cities of Western Europe to North America.

Owners: Telecom Italia Sparkle

RFS: 2001

Length: 7,000 kms

Landing points: 6- Athens (Greece); Catania (Italy); Chania (Greece); Haifa


(Israel); Istanbul (Turkey); Pentaskhinos (Cyprus); Tel Aviv (Israel)

Figure 48: MedNautilus submarine cable system route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 70
4.43 Med Cable Network

Overview: The network which was commissioned in early 2005 interconnects


Algeria with France.

Owners: Orascom Telecom Holding

RFS: 2005

Length: 1,300kms

Landing points: 4- Algiers (Algeria); Annaba (Algeria); Marseille (France); Oran


(Algeria)

Figure 49: Med Cable Network submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 71
4.44 Maya-1

Overview: The network MAYA-1 is a Submarine Cable System providing service


from Hollywood, Florida on the southern tip of the United States to Tolu, Colombia
on the northern tip of South America.MAYA-1 has a system capacity of 82.5 Gbps
and utilizes Synchronous Digital Hierarchy (SDH) with Erbium-Doped-Fiber-Amplifier
(EDFA) technology.

Owners: Cable & Wireless Communications, Verizon, Tata Communications, AT&T,


Sprint, Hondutel, CANTV, Telefonica, BT, Orbitel, Telecom Italia Sparkle,
Columbus Networks, Entel Chile, Telmex, Embratel

RFS: 2000

Length: 4,400 kms

Landing points: 7- Cancún (Mexico); Half Moon Bay (Cayman Islands); Hollywood,
Florida (United States); Maria Chiquita (Panama); Puerto Cortes (Honduras); Puerto
Limon (Costa Rica); Tolu (Colombia)

Figure 50: Maya-1 submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 72
4.45 Interchange Cable Network 2 (ICN2)

Overview: ICN2 is scheduled to be Ready-For-Service in June 2016 and will link


Vanuatu to Solomon Islands and Papua New Guinea. Interchange signed a supplier
agreement with Alcatel-Lucent for deploying this network.

Owners: Interchange

RFS: 2016

Length: 3,000kms

Landing points: 4- Honiara (Solomon Islands); Luganville (Vanuatu); Port Moresby


(Papua New Guinea); Port Vila (Vanuatu)

Figure 51: ICN2 submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 73
4.46 IMEWE

Overview: IMEWE (India-Middle East-Western Europe) submarine cable is an ultra-


high capacity fiber optic submarine cable system which links India & Europe via
Middle East and is operational since December 2010. It consists of 3 fiber pair
system and is well complemented with 9 terminal stations forming a consortium of
9 leading telecom carriers from 8 countries.

Owners: Consortium of Telecom Operators (Telecom Italia Sparkle, Etisalat, Tata


Communications, Pakistan Telecommunications Company Ltd., Orange, Airtel
(Bharti), Saudi Telecom, Ogero, Telecom Egypt)

RFS: 2010

Length: 12,091kms

Landing points: 9- Alexandria (Egypt); Catania (Italy); Fujairah (United Arab


Emirates); Jeddah (Saudi Arabia); Karachi (Pakistan); Marseille (France); Mumbai
(India); Suez (Egypt); Tripoli (Lebanon)

Figure 52: IMEWE submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 74
4.47 Gulf Bridge International Cable System (GBICS)/Middle East North Africa
(MENA) Cable System

Overview: The entire submarine cable network is owned by the GBI (except for
the fiber pairs which branches for between Oman to Mumbai and is owned by MENA
Cable company.).

Owners: Gulf Bridge International, MENA

RFS: 2012

Length: N.A

Landing points: 9- Al Daayen (Qatar); Al Hidd (Bahrain); Al Khobar (Saudi Arabia);


Al Seeb (Oman); Al-Faw (Iraq); Bushehr (Iran); Fujairah (United Arab Emirates);
Kuwait City (Kuwait); Mumbai (India)

Figure 53: GBICS/MENA submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 75
4.48 FLAG North Asia Loop/REACH North Asia Loop

Overview: Global Cloud Xchange (which was known as Reliance Globalcom earlier)
owns 3 fiber pairs which is referred to as the FLAG North Asia Loop. Out of these 3
fiber pairs, Telstra and PCCW holds one fiber each and the third fiber pair is jointly
owned by PCCW and Telstra.

Owners: Global Cloud Xchange, PCCW, Telstra

RFS: 2001

Length: 9,501 kms

Landing points: 9- Pusan (Korea, Rep.); Tong Fuk (Hong Kong); Toucheng (Taiwan);
Wada (Japan)

Figure 54: FLAG/REACH North Asia Loop submarine cable route-map and
Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 76
4.49 FLAG Europe-Asia (FEA)

Overview: GLAG Europe- Asia is one of the oldest submarine cable network since
1997 and connects Asia region with Europe alongwith Middle East in the midway
network.

Owners: Global Cloud Xchange

RFS: 1997

Length: 28,000 kms

Landing points: 17- Alexandria ( Egypt); Aqaba (Jordan); Estepona (Spain);


Fujairah (United Arab Emirates); Jeddah (Saudi Arabia); Keoje (Korea, Rep.);
Lantau Islandn (Hong Kong); Miura (Japan); Mumbai (India); Ninomiya (Japan);
Palermo (Italy); Penang (Malaysia); Porthcurno (United Kingdom); Satun (Thailand);
Shanghai (China); Songkhla (Thailand); Suez (Egypt)

Figure 55: FEA submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 77
4.50 Bay of Bengal Gateway (BBG)

Overview: The network became operational in February 2015 and provides


connectivity across the South-East Asian countries with the countries in the Middle-
East region.

Owners: Vodafone, Telekom Malaysia, Omantel, Reliance Jio Infocomm, Dialog


Axiata, Etisalat, Gulf Bridge International

RFS: 2015

Length: 8,000 kms

Landing points: 17 – Barka (Oman); Chennai (India); Fujairah (United Arab


Emirates); Mumbai (India); Penang (Malaysia); Ratmalana (Sri Lanka)

Figure 56: BBG submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 78
4.51 Asia Submarine-cable Express (ASE)/Cahaya Malaysia

Overview: The network became comprises of 6 fiber pairs of which StarHub, PDLT
and NTT owns 4 fiber pairs and Telekom Malaysia owns 2-fiber pairs. The network
became operational in August 2012.

Owners: NTT, Telekom Malaysia, PLDT, Starhub

RFS: 2012

Length: 7,500 kms

Landing points: 17- Changi South (Singapore); Daet (Philippines); Maruyama


(Japan); Mersing (Malaysia); Sihanoukville (Cambodia); Tseung Kwan O (Hong Kong)

Figure 57: ASE/ Cahaya Malaysia submarine cable route-map and Landing
Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 79
4.52 Asia Pacific Gateway (APG)

Overview: The network connects the major operational centres in the Asia-Pacific
region

Owners: NTT, China Telecom, China Unicom, Chunghwa Telecom, KT, Starhub, LG
Uplus, China Mobile, Viettel Corporation, Vietnam Telecom International, Global
Transit, Facebook, TIME dotcom

RFS: 2015

Length: 10,400 kms

Landing points: 11- Chongming (China); Danang (Vietnam); Kuantan (Malaysia);


Maruyama (Japan); Nanhui (China); Pusan (Korea, Rep.); Shima (Japan); Songkhla
(Thailand); Tanah Merah (Singapore); Toucheng (Taiwan); Tseung Kwan O (Hong
Kong)

Figure 58: APG submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 80
4.53 SEACOM/Tata TGN-Eurasia

Overview: SEACOM is the overall owner of the East African portion and owns the 2
fiber pairs which provide interconnectivity between India and Egypt. Tata
Communications also owns 2 fiber pairs between Egypt to India. The fiber pairs
provide connectivity between Egypt and India, through with a branch to Jeddah
(Saudi Arabia).

Owners: Industrial Promotion Services, Remgro Limited, Herakles Telecom LLC,


Convergence Partners, Shanduka, Tata Communications

RFS: 2009

Length: 15,000 kms

Landing points: 8- Dar Es Salaam (Tanzania); Djibouti City (Djibouti); Jeddah


(Saudi Arabia); Maputo (Mozambique); Mombasa (Kenya); Mtunzini (South Africa);
Mumbai (India); Zafarana (Egypt)

Figure 59: SEACOM/Tata TGN-Eurasia submarine cable route-map and Landing


Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 81
4.54 SEA-US

Overview: The SEA-US submarine network connects US with the South East Asian
countries.

Owners: RAM Telecom International, Globe Telecom, Hawaiian Telcom, Telkom


Indonesia, GTA TeleGuamRFS: 2016

Length: 15,000 kms

Landing points: 5- Davao ( Philippines); Hermosa Beach, California (United States);


Manado (Indonesia); Oahu, Hawaii (United States); Piti (Guam)

Figure 60: SEA-US submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 82
4.55 Russian Optical Trans-Arctic Cable System (ROTACS)

Overview: The SEA-US submarine network connects US with the South East Asian
countries.

Owners: RAM Telecom International, Globe Telecom, Hawaiian Telcom, Telkom


Indonesia, GTA TeleGuamRFS: 2016

Length: 15,000 kms

Landing points: 5- Davao ( Philippines); Hermosa Beach, California (United States);


Manado (Indonesia); Oahu, Hawaii (United States); Piti (Guam)

Figure 61: ROTACS submarine cable route-map and Landing Stations

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 83
5. Key Updates in the Global Submarine Cable Market

Period Entities Involved Description


Central African Backbone (CAB5) deployment is a
5-year fiber optic project which has been funded
by the World Bank. The construction work for the
5th phase was initiated by Democratic Republic of
Congo (DRC), and is scheduled to be completed by
Central African
Mar-15 December 2019. The network will connect DRC
Backbone (CAB
with other countries in the African region which
includes Angola, Gabon, Cameroon, Chad,
Equatorial Guinea, Central African Republic,
Republic of Congo (Congo-Brazzaville), Sao Tome
and Principe, Sudan and Burundi.
Plans to deploy a 228km aerial fiber optic network
Mar-15 Phase3 Telecom
between Kano (Nigeria) to Gazaoua (Niger).
MegaFon and SilkNet partnered to deploy a 37-km
fiber optic link to interconnect the two countries
Mar-15 MegaFon, SilkNet namely Russi and Georgia through Upper Lars-
Kazbegi route having a transmission capacity of
100Gbps.
The companies partnered to demonstrate 100G
Xtera, State Grid and 10G transmission capacity over 607km and
Information & 632km links, respectively, by leveraging the
Mar-15
Telecommunication capabilities of Xtera‟s Wise Raman optical
(SGIT) Company amplification solution and Vascade EX2000 optical
fibre solution from Corning Incorporated.
Alcatel-Lucent was selected to deploy the first
100G fiber optic network in Cambodia, to enable
Mar-15 Alcatel-Lucent
the country cater to increased demand for
broadband access services.
Mitsubishi Electric completed the up gradation and
expansion requirements for SEA-ME-WE-4
submarine cable system, whereby it supplied 100G
Mitsubishi Electric
MF-6900GWS Submarine Line Terminal Equipment
Mar-15 Corporation, SE-ME-
to the 16 landing stations of the submarine cable
WE-4
network, thereby increasing the current
transmission capacity of the cable from 40Gbps to
100 Gbps.
Interroute further enhanced fibre-optic
capabilities, by adding a third route to interlink its
landing stations in Bari (Puglia) and Mazara del
Vallo (Sicily) via Messina and Catania. This will
Mar-15 Interroute
provide Interroute with increased capacity
connectivity from its landing stations to submarine
cables which aim to provide connectivity to
Europe.
Won a contract from Republic of Equatorial
Huawei Marine
Mar-15 Guinea, to deploy a Ceiba-2 Submarine Cable
Networks
System. The network which is expected to be
Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 84
operational at the end of 2015, has an initial
transmission capacity of 4Tbps. The network will
provide connectivity between the Malabo and
Bata, with a branching unit towards Kribi
(Cameroon).
Seaborn Networks acquired backhaul and
Seaborn Networks, metropolitan fibre network capacity in the State
Mar-15
Netell Telecom of Sao Paulo from Netell Telecom and CitatelDutos
e FibrasOpticas for Seaborn‟s Seabras-1 cable.
Plan to deploy a 86 mile fibre-optic network to
interconnect Juneau to Haines and Skagway. The
Alaska Power &
Mar-15 cable system is expected to be deployed in the
Telephone (AP&T)
Upper Lynn Canal (ULC) region in Southeast Alaska
region.
Signed an agreement to join the *UAE-IX, a
carrier-neutral internet traffic exchange point in
Global Cloud
Mar-15 Dubai, which would enable it to expand and
Xchange (GCX)
interconnect with the other networks in the
European region.
Epsilon won a contract to provide networking
solution, which enabled Farice (a submarine cable
Mar-15 Epsilon, Farice operator), to enable Farice provide its customers
to interconnect across 170 countries with its
Farice‟s submarine cable infrastructure.
FastWeb entered into an agreement with MENA
Submarine Cable System (MENA SCS), for the
Mar-15 FastWeb and MENA
implementation of a „protected backhauling
capacity connection‟ across the Italian peninsula.
Telekom Malaysia entered into a Memorandum of
Understanding (MoU) with TIME dotCom (TdC), for
the deployment of a new submarine cable (named
Telekom Malaysia,
Mar-15 SistemKabel Rakyat 1Malaysia (SKR1M)). The cable
TIME dotCom (TdC)
will have an initial capacity of 4 Tbps and will be
3,500km in length and will be operational for
services by 2017.
Trans World Associates (TWA) of Pakistan signed
Trans World an agreement to become a constituent member of
Mar-15 Associates (TWA) the SEA-ME-WE-5 consortium, which would span
and SEA-ME-WE-5 across 20,000kms with a transmission capacity of
24Tbps and will become operational by 2016.
Level 3 Level 3 Communications plans to extend the
Communications and geographic reach of its South American Crossing
Feb-15
South American (SAC) submarine cable, through the deployment of
Crossing (SAC) additional fibre-optic segment to Colombia.
The US military is deploying a fiber optic cable
worth $31 million between Florida, USA and its
naval base in Cuba at Guantanamo Bay, to
Feb-15 US Military
enhance the telecom connectivity in the region.
The network is expected to be operational by end
of 2015.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 85
Vocus Communications of Australia plans to buy
additional capacity on the Southern Cross Cable
Vocus Network (SCCN) for $58.5 million. This would
Feb-15
Communications enable it to enhance its capacity by upto 10 times
and cater to the increasing demand for data of the
wholesale and enterprise sector clients.
Tele Greenland plans to further expand the
country submarine cable system to the north of
TELE Greenland,
Feb-15 the country by 2016. The operator plan to invest
Greenland Connect
~DKK20 million ($3.07 million) for the expansion of
the Greenland Connect Nord project.
Nigeria‟s National Broadband Council plans to
further increase the number of landing points in
Nigeria‟s National the country for submarine cable system. The
Feb-15
Broadband Council council plans to have landing points at Port
Harcourt, Ondo and Cross River, in addition to the
current landing point at Lagos in Nigeria.
The 3 leading telcos in China namely China
Unicom, China Telecom and China Mobile, signed
New Crossing-Pacific an agreement to jointly construct and fund a new
(NCP) Cable System, submarine cable systems named New Crossing-
China Unicom, China Pacific (NCP) Cable System. The cable is estimated
Telecom and China to be 13,618 kms in length with a transmission
Mobile capacity of 60Tbps and will help these companies
to cater to the increasing demand for internet
services in the country.
The Brazilian authorities plan to deploy a 7,784km
underwater fibre network in the Amazon basin.
Jan-15 Brazil Government
However, a feasibility study of the same is
underway.
The Government of Kenya and Sudan signed an
Government of agreement for the deployment of a fiber-optic link
Jan-15 Kenya, Government for interconnecting Eldoret in Kenya with Juba in
of Sudan Sudan. The length of this network is expected to
be 2,100 kms.
The Government of Kazakhstan and Azerbaijan,
Trans-Eurasian signed an agreement to deploy the trans-Caspian
Jan-15 Information Super Sea segment of Trans-Eurasian Information Super
Highway (TASIM) Highway (TASIM) for connecting Azerbaijan and
Kazakhstan.
Ciena was selected by The Trans-Pacific Express
(TPE) Cable Network consortium (comprising of
leading telcos such as China Telecom, NTT
Trans-Pacific
Communications, KT Corp, AT&T, China Telecom,
Express (TPE) Cable
Jan-15 Chungwha Telecom, China Unicom and Verizon
Network
Business) for providing solutions to increase the
consortium, Ciena
capacity of its submarine cable systems to cater to
the increasing demand from the Asia-Pacific
region.
Ciena, of Japan-US Ciena was selected to expand the capacity of
Jan-15
Cable Network Japan-US Cable Network‟s trans-Pacific submarine
Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 86
system, whereby Ciena will provide its multi-
terabit GeoMesh submarine system and WaveLogic
coherent optical processors.
Airtel Gabon launched a 187km submarine fiber-
Airtel Gabon and
optic cable network between Libreville and Port-
Jan-15 Africa Coast to
Gentil and it will leverage the capacity on the
Europe (ACE) cable
Africa Coast to Europe (ACE) cable,
Global Cloud Xchange (GCX) plans to offers 100
Gigabit Ethernet (GbE) connectivity to GTT
Global Cloud
Jan-15 Communications between US and Europe by
Xchange
leveraging its trans-Atlantic FA-1 North and FA-1
South cables.
HGC deployed its MetroLambda-X 100G fibre-optic
Hutchison Global
service, for providing capability to provide
Jan-15 Communications
connectivity between a submarine cable landing
(HGC)
and data center for a US based carrier.
PowerTel Communications, an ISP based in
Zimbabwe has established and started operating a
Jan-15 PowerTel, SEACOM
fiber connection to SEACOM submarine cable
system.
On 23 December Australia‟s Telstra formally
unveiled a $697 million takeover for Asian
Dec-14 Tesltra, Pacnet
submarine cable giant Pacnet, with the deal
expected to completed by mid-2015.
Spark (formerly Telecom New Zealand), Telstra
Spark (formerly
and Vodafone plans to partner to build a and
Telecom New
Dec-14 deploy Tasman Global Access Cable worth $70
Zealand), Telstra,
million. The cable will be deployed by Alcatel-
Vodafone
Lucent and will be operational mid-2016 onwards.
Saudi Telecom Company (STC) completed the first
Saudi Telecom phase of upgrade to 100Gbps technology and
Company (STC), transmission capacity of 8Tbps for the 15,000km
Dec-14
Europe India Europe India Gateway (EIG) submarine cable
Gateway (EIG) system. The cable connects 12 countries between
India and the UK.
Huawei won a contract to deploy fibre-optic
network between Gabon and the Republic of
Huawei
Dec-14 Congo (Congo-Brazzaville). The network is being
Technologies
build up with an investment of $26 million and is
expected to functional by July 2016.
Rostelecom plans to deploy Kamchatka-Sakhalin-
Magadan underwater fibre-optic link in Q2-2015.
inthe second quarter of 2015, representatives of
the telco‟s Far East Federal District branch have
informed Interfax. The company has already
Dec-14 Rostelecom completed surveys and preparatory work on the
coast of the Sea of Okhotsk in Kamchatka.
Kamchatka Territory is now one of the few Russian
regions where data transmission services are
provided only with satellite communications
channels. The 1,855km cable will have a capacity
Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 87
of 8Tbps and is scheduled to be put into operation
in June 2016.
Alcatel-Lucent partnered with Cinia Group
(previously known as Corenet) to build an
undersea cable system (named Sea Lion), to offer
Dec-14 Alcatel-Lucent direct linkage between Nordic region and
continental Europe. The network is expected to be
more than 1,100km and will have a transmission
speed of 100Gbps and will be functional by 2016.
KVH (previously KVH Telecom) deployed a new
backhaul service in Japan to connect the Shima
Cable Landing Station (Shima City, Mie Prefecture)
with Tokyo and Osaka by leveraging KVH‟s
Dec-14 KVH Co
Ethernet backbone network. This service will
further add to the existing portfolio of backhaul
services of KVH and offer transmission capacity of
10Gbps or 100 Gbps.
Grupo GTD, the telecom operator based in Chile
activated the second section of its domestic
submarine cable link, between Coyhaique and
Nov-14 Grupo GTD Puerto Montt, which was deployed by NSW. The
total length of the cable which has been
completed in two phases is ~400km and has been
built with a cost of ~15 million.
China Unicom completed the deployment of
1,500km fibre-optic link, at an estimated cost of $
500 million, to provide connectivity between the
Nov-14 China Unicom province of Yunnan in China, with NgweSaung
Beach in the Irrawaddy Delta of Myanmar. It would
further also connect to the SEA-ME-WE 5 cable,
which is expected to start operations in 2016.
NEC was selected by Angola Cables to build South
Nov-14 NEC, Angola Cables Atlantic Cable System (SACS) between Angola and
Brazil.
The Malaysian Communications and Multimedia
Malaysian
Commission (MCMC) plans to offer a tender worth
Communications and
Nov-14 $239.5 million (MYR800 million) for a undersea
Multimedia
cable system to connect Peninsular Malaysia with
Commission
East Malaysia.
Emerald Networks was granted a cable landing
Nov-14 Emerald Networks licence for its submarine cable network (Emerald
Express Cable Network) by FCC.
Solomons Oceanic Cable Company (SOCC) plans to
Solomons Oceanic have its inter-island submarine cable network to
Nov-14
Cable Company be operational by March 2015, which is being built
and has been valued at ~$70 million.
Consortium of telecom operators which includes
New Cross Pacific
KT Corporation, Chunghwa Telecom plans to
(NCP), KT
Nov-14 deploy a new submarine cable system named New
Corporation,
Cross Pacific (NCP), to provide direct connectivity
Chunghwa Telecom
between China, South Korea and Japan. The total
Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 88
length of the cable is estimated to be 14,000 kms
with a transmission capacity of 80Tbps and is
expected to be completed in the later half of
2017.
Retelit plans to invest $88.5 million (€88.5 million)
in 2-pahses of $58 million and $12 million for the
Nov-14 Retelit
Asia-Africa-Europe-1 (AAE-1) submarine cable
system.
Angola Cables, Signed a mutual IP Transit agreement to further
TeliaSonera strengthen the regional connectivity for the TSIC‟s
Nov-14
International Carrier customer by leveraging Angola Cables‟ submarine
(TSIC) cable assets.
Google plans to partner with a consortium
comprising of Angola Cables, Algar Telecom and
telcoANTEL for the undersea cable having 6-fiber
Nov-14 Google
pairs with 64Tbps capacity. The cable will
interlink Brazil and USA when it becomes
operational in 2016.
Angola Cables, Angola Cables plans to interlink its South Atlantic
Google, South Cable System (SACS) with the cable system
Nov-14
Atlantic Cable connecting US & Brazil, which will enable it to
System (SACS) connect Brazil with Africa by the end of 2016.
Cienna was selected by the Asia America Gateway
(AAG) consortium for the upgradation of its
20,000km transpacific submarine cable network
Cienna, Asia
with a capacity of 100Gbps. The sub marine cable
Nov-14 America Gateway
system will provide connectivity amongst the
(AAG)
countries which includes Brunei, Hong Kong,
Malaysia, Hawaii, Vietnam, Philippines, Guam and
Singapore and the US coast.
NEC was selected by the Asia-Africa-Europe 1
(AAE-1) submarine cable as a supplier for its S1H
segment of the cable network. The network is
expected to become operational in the year 2016
Nov-14 NEC, AAE-1
and will provide interconnectivity across the
countries which includes Qatar, India, Singapore,
Malaysia, Hong Kong, UAE, Djibouti, Yemen,
Egypt, Saudi Arabia, Vietnam, Thailand etc.
Alcatel Lucent plans to launch its new company
Nov-14 Alcatel Lucent Alcatel-Lucent Submarine Networks through an IPO
in the first half of the year 2015.
Ooredoo Tunisia and Orange Tunisia partnered to
make Didon, the first private subsea system of
Orange Tunisia, Tunisia operational. The network has a length of
Sep-14
Ooredoo Tunisia 170kms and is expected to offer capacity of
8TBps. Alcatel-Lucent was the vendor for
supplying infrastructure requirements.
Retelit of Italy became a member of the Asia
Retelit, Asia Africa Africa Europe 1 (AAE-1) submarine cable
Sep-14
Europe 1 (AAE-1) consortium and plans to build a landing station in
Bari.
Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 89
The submarine optical fiber Seabras-1 which is
Seabras-1, Seaborn owned by Seaborn Networks and Alcatel-Lucent
Sep-14 Networks, Alcatel- became operational and provide connectivity
Lucent between Brazil and United States, will become
operational in 2016.
Hawaiian Telcom was selected as the landing
partner by the Hawaiki Cable in Hawaii, whereby
Hawaiian Telcom,
Sep-14 Hawaiian Telcom will be responsible for providing
Hawaiki Cable
and securing relevant permissions in Hawaii for
Hawaiki Cable.
Emtel, SFR Mayotte and Comores Cables together
Emtel, SFR Mayotte, signed a MoU to form a consortium and deploy a
Sep-14
Comores Cables undersea link of length 350 kms with an estimated
cost of ~$20.9million.
Pacific Wave upgraded its US West Coast peering
Sep-14 Pacific Wave exchange, by adding another 40Gbps connection to
Australia and New Zealand.
Leading telecom operators which included Globe
Telecom, Telekomunikasi Indonesia International
(Telin), Hawaiian Telcom, RAMTelecom
International (RTI), Teleguam Holdings
(GTA), Telkom USA and GTI Corporation – together
Southeast Asia-
formed a consortium for the deployment of a
Aug-14 United States (SEA-
15,000kms submarine cable network named
US)
Southeast Asia-United States (SEA-US). The
consortium also selected NEX as the system
supplier for the network to be deployed with
transmission capacity of 100Gbps and is expected
to be operational by the end of 2016.
Omantel plans to invest $31 million for the landing
Aug-14 Omantel station construction of Asia-Africa-Europe (AAE-1)
submarine cable system in France.
Tata Communications partnered with Roke Telkom
for the deployment of a new point of presence
Roke Telkom, Tata
Aug-14 (PoP) at Kampala, which would enable Tata
Communications
Communications to expand its presence in the
emerging markets.
Cable & Wireless Communications (LIME) plans to
leverage its submarine cable network, to provide
Cable & Wireless
connectivity to the business customers using its
Aug-14 Communications
“LIME Global Connect” data service, thereby
(LIME)
further strengthening it positioning amongst the
business customers.
Global Cloud Xchange (formerly known as Reliance
Globalcom) plans to deploy a submarine cable
between India and Singapore. The cable will be
Global Cloud
four-fiber pair sytem with transmission capacity of
Jul-14 Xchange (Reliance
100Gps and is expected to be operational by mid
Globalcom)
2016.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 90
The 4,600 km Hibernia Express submarine cable
Hibernia
system became operational and has transmission
Jul-14 Express submarine
capacity of 100Gbps. The six-fiber-pair submarine
cable system
cable will span across New York and London.
IslaLink deployed the Infinera DTN-X packet
optical transport across its network and will
Jul-14 IslaLink, Infinera
enable IslaLink to further enhance its capabilities
to manage costs and differentiate its services.
Google plans to invest in a trans-Pacific submarine
China Telecom
cable system, which would provide it with a
Global, China Mobile
transmission capacity of 60Tbps. The network
International, KDDI,
Jun-14 named “FASTER” will also have other telcos like
Global Transit,
China Telecom Global, China Mobile International,
SingTel, Google,
KDDI, Global Transit and SingTel. NEC was
NEC
selected as the system supplier for the network.
British Telecom initiated the deployment of initial
batch of 20 submarine fibre optic cables in
Jun-14 British Telecom Scotland as a part of its Digital Scotland initiative,
which is estimated to cost around $448.9 million
(£264 million).
Ciena Corporation was selected to provide its
Ciena, TeliaSonera converged packet optical platform (5400 series
Jun-14 International Carrier switching platform from Ciena) to enable TSIC to
(TSIC) build up a scalable and flexible Optical Transport
Network (OTN)-based network.
Xtera Defense Information Systems Agency (DISA) of USA
Communications, US selected Xtera Communications for the
Jun-14 Defense Information deployment of a new undersea fiber optic cable
Systems Agency system, for its “Southern Command” area.
(DISA)
Vocus Vocus Communications of Australia signed an
Communications, agreement with Telecom New Zealand to acquire
Jun-14 Telecom New its 10% stake in the Sea-Me-We 3 cable system for
Zealand, SEA-ME- $2.3 million.
WE-3
Telkom Indonesia selected ZTE for the upgradation
Telkom Indonesia, of its Java backbone to further upgrade the
Jun-14
ZTE transmission capacity of the network from 10Gbps
to 100 Gbps.
Dialog Axiata. Dialog Axiata of Sri Lanka signed an agreement
Jun-14 the Bay of Bengal with the Bay of Bengal Gateway (BBG) to for
Gateway (BBG) landing the cable system in the country.
Government of India plans to roll out new
submarine fiber-optic cable for connecting its
Jun-14 Government of India mainland with Andaman and Nicobar Islands to
improve the connectivity between the two through
a 1,200km cable length.
Rostelecom, Tehkompaniya Huawei (a subsidiary Huawei
May-14 Tehkompaniya Technologies) was selected by Rostelecom to
Huawei deploy a submarine cable to link 3 regions of

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 91
Russia namely Magadan, Sakhalin and Kamchatka
regions in Russia. The deployment of network is
estimated to cost ~87 million (RUB 3 billion) and
will be a 4 fiber optic cable with a transmission
capacity of upto 8 Tbps. The cable network in
expected to be functional by mid- 2015.
SubPartners plans to build a submarine cable
system named APX-Central, to connect the major
centers of Melbourne, Hobart and Adelaide in
May-14 SubPartners Australia. The network is expected to stretch
~5,300km and support a transmission capacity of
~32Tbps is expected to be operational in the later
half of 2016.
The Philippines based telecom operator
PLDT plans to invest an additional amount of $22.9
May-14 PLDT million (PHP 1billion) to further extend the length
of its new fiber cable from 100,000km by an
additional 15,000 kms by end of 2014.
IT Telecom was selected by Tele-Post Greenland
to work out on the possibility of deploying a new
IT Telecom, Tele-
May-14 subsea cable for interconnecting submarine cable
Post Greenland
systems between Nuuk, Maniitsoq, Sisimiut,
Aasiaat and Qasigiannguit.
Xtera Communications was selected for contract
Xtera
worth $31 million by the US Department of
Communications, US
May-14 Defence to deploy a submarine fibre-optic cable to
Department of
interconnect its Navy base located at Guantanamo
Defence
and South Florida.
Plans to connect to the SEACOM pan African
Level 3
May-14 IP/MPLS network by deploying content delivery
Communications
nodes in its data centre facilities located in Kenya.
Plans to deploy a fiber optic cable between the
Okinawa Prefecture country‟s Miyako Islands and Yaeyama islands,
May-14
Government (OPG) with the length of fiber optic cable being 915km
and is expected to be deployed by August 2016.
Ciena partnered with Japan-US Cable Network to
provide transmission capacity of 200Gbps over the
Apr-14 Ciena
submarine cable network spanning 630kms in the
US West coast.
Tata Communications and Bahrain Internet
Tata Exchange (BIX) signed an agreement for the
Communications, development of sub-sea fiber optic cable. It will
Apr-14
Bahrain Internet provide connectivity between Bahrain and other
Exchange (BIX) Gulf countries with India by leveraging Tata‟s
Global Network (TGN).
Global Cloud Xchange (formerly known as Reliance
Globalcom) plans to deploy a submarine cable
Global Cloud network of length of ~8,300 km between Japan
Apr-14
Xchange and USA. The cable system is estimated to have a
transmission capacity of 100x100Gbps per fiber
and is expected to be operational by 2015.
Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 92
Telkom Indonesia partnered with Huawei Marine
Telkom Indonesia,
Networks, to upgrade the PT Telkom 3rd
Mar-14 Huawei Marine
Route submarine cable system with 100Gbps
Networks
technology.
Bharti Airtel upgraded its 3,200kms long
Mar-14 Bharti Airtel, i2i i2i submarine network between Indian and
Singapore by deploying solutions from Ciena Corp.
Level 3 Communications plans to deploy a
submarine cable to provide interconnectivity
Level 3
Mar-14 between its international undersea network and
Communications
Pacific coast of Colombia, and will reduce the
dependency of Colombia on its Caribbean coast.
South East Asia-Middle East-Western Europe 5
(SEA-ME-WE 5) selected Alcatel-Lucent and NEC
for the construction of the network. NEXC was
selected to construct the network upto Tokyo,
Mar-14 SEA-ME-WE-5 whereas Alcatel-Lucent was select to construct
the network between France and Sri Lanka. The
network which has a transmission capacity of upto
100Gbps and has a length of ~20,000 kms is
expected to be operational by 2016.
Alcatel-Lucent was selected by Libyan
International Telecommunication Company
Libyan International
(LITC) to deploy a 1,000km undersea cable system
Telecommunication
Feb-14 to connect Tripoli with Benghazi. The cable
Company (LITC),
system is expected to have a transmission capacity
Alcatel-Lucent
of more than 10Tbps and is expected to be
operational by mid-2015.
Telsur, a telco based in Chile plans to invest $10
million to deploy a submarine cable of length
Feb-14 Telsur
440km, to connect Quellon with Puerto
Chacabuco, in the country.
A consortium of leading 17 global telcos plans to
deploy a 25,000km submarine cable system named
Asia Africa Europe-1
Asia Africa Europe-1 (AAE-1) and will span across
Jan-14 (AAE-1) cable
the select countries across South East Asia, Africa
network
and Europe. The submarine cable network is
expected to be operational by 2016.
Alcatel-Lucent was selected to upgrade the
10,000km long EASSy submarine with 100G
Jan-14 Alcatel-Lucent technology. The upgrade will enable the cable
system which links Sudan and South Africa to have
a data transmission capacity of 10Tbps.
Viatel partnered with Huawei Marine Networks to
Viatel, Huawei complete the deployment of Flores-Corvo
Jan-14
Marine Networks Submarine Cable System, which has a length of
~685km.
Palau Telecoms, Xtera Communications was selected by Palau
Jan-14
Xtera Telecoms for supplying and installation of

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 93
Communications equipment‟s which will facilitate in connecting
Palau to Guam.
Telebras of Brazil plans to establish a joint
venture with IslaLink Submarine Cables of Japan,
Telebras, IslaLink to deploy and operate an undersea cable to
Jan-14
Submarine Cables connect Brazil and Europe. The project is
estimated to cost $185 million and is estimated to
be completed after 18 months.
Ocean Networks (which owns the South America
Pacific Link (SAPL) submarine cable system),
Ocean Networks, selected Xtera for the supply and installation of its
Jan-14
Xtera SAPL submarine cable system, which is expected
to be operational in 2016 and has a length of
~9,400 kms.
Infinera was selected by the consortium of telcos
(Softbank, Telstra, NTT, AT&T,Verizon and
Softbank) owning Australia Japan Cable (AJC)
Jan-14 Infinera consortium, to deploy its Infinera‟s DTN-X packet
optical transport networking platform across the
submarine cable network which spans across
12,700km and connects Australia and Japan.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 94
6. Major Submarine Cable Vendors

6.1 Fujitsu

Company Overview

Headquartered at Tokyo in Japan, Fujitsu is the largest IT services provider in


Japan and provides a portfolio of technology products, solutions and services to its
clients. Fujitsu organizes itself under 3 major business segments namely
Technology solutions (consisting of Services and System platforms), Ubiquitous
Solutions (consisting of PCs / Mobile Phones and Mobilewear) and Device Solutions
(which comprises of LSI Devices and Electronic Components).

The company provides customers globally with its products which includes
electronic components, air conditioners, computers, bar code scanners etc.
Fujitsu's computer product offering includes servers, computers and peripherals
and storage systems. One of the top IT services firms in the world, it provides
consulting, infrastructure management, and systems integration services. Other
includes a wide portfolio of telecommunications transmission equipment,
semiconductors, software and consumer electronics.

Fujitsu generates most of its revenues in Japan, but its growth strategy includes
strengthening its international operations, with a goal of increasing the percentage
of sales outside Japan to 40%. Fujitsu's efforts to strengthen its North American
operations have included consolidating a number of its subsidiaries in the region. In
2009 the company combined three of its US-based subsidiaries namely Fujitsu
Consulting, Fujitsu Computer Systems and Fujitsu Transaction Solutions, to form
Fujitsu America.

Fuji Tsushinki Manufacturing Corporation was the former name of Fujitsu. The
name was changed to Fujitsu Limited in the year 1967. The company is
headquartered in Tokyo, Japan and was founded in the year 1935.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 95
Table 14: Fujitsu- Key Information

FY2014 FY-2013 FY-2012


Total Net Sales 4,762.4 4,381.7 4,467.5
Revenues by
Geography#
Japan 3,465.1 3,306.4 3,396.2
EMEA 937.3 785.2 817.5
The Americas 386.0 273.7 277.5
APAC & China 542.1 468.7 421.9
Revenue by Services*
Technology Solutions 3,243.0 2,942.3 2,934.9

Ubiquitous Solutions 1,125.4 1,090.2 1,154.2


Device Solutions 600.2 540.3 584.7
Total Cost of Sales 3,493.2 3,177.9 3,232.1
of which R&D
221.4 231.0 238.3
Expenses
Operating Income 142.6 95.2 105.3
Net Income 48.6 (72.9) 42.7
Total Employees
162,393 168,733 173,155
(Full time employees)
Source: Company Reports
#
Excludes eliminations
Note: All Financial figures in billion Yen for the Financial Year ending 31st March

Offerings (Solutions, Applications, products, Services)

Fujitsu organizes itself under 3 major business segments namely Technology


solutions (consisting of Services and System platforms), Ubiquitous Solutions
(consisting of PCs / Mobile Phones and Mobilewear) and Device Solutions (which
comprises of LSI Devices and Electronic Components).

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 96
Figure 62: Business Segments of Fujitsu

Source: Fujitsu

Technology Solutions

The Technology Solutions offerings from Fujitsu further consist of two sub-
components namely Services and System Platforms.

 Services

− Solutions/SI services are mainly for focusing on information system


consulting and integration and Infrastructure services which focus on
outsourcing services.
− The Infrastructure services offerings from Fujitsu consists of Network
Services (like internet/mobile content distribution, business networks),
security solutions (which includes information system and network
installation services), outsourcing services (like BPO, Application
management, SaaS, datacenters, ICT operations &management) and system
support services (like information systems and networks surveillance and
maintenance services).

 System Platforms

− Fujitsu‟s Network Products offerings consist of optical transmission systems,


Network management systems and mobile phone base stations.
− System product offerings of Fujitsu consist of Storage systems, full range of
servers (which includes UNIX, mainframe, UNIX and range of x86 servers)
and a range of softwares (like middleware and operating systems).

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 97
Ubiquitous Solutions

Fujitsu‟s Ubiquitous solution offerings consist of PCs/Mobiles Phones and


Mobilewears.

 Fujitsu offers desktop PCs, 2-way notebook PC and Windows 8 tablets as its
range of offerings under PC. Mobile Phones offerings from Fujitsu consist of its
Raku-Raku Phone series and smartphones.
 As a part of its Mobilewears offerings, Fujitsu offers connectivity products such
as mobile communication equipment, automotive electronics and Car audio and
navigation systems.

Device Solutions

Its consists of offerings consisting of LSI Devices and range of Electronic


components.

 LSI Device offerings include LSI devices found in products like mobile phones,
servers, automobiles and home appliances.
 Its offering under Electronic component includes Semiconductor packages,
structural components (like relays, connectors etc.), printed circuit boards,
optical transceiver modules, batteries etc.

Fujitsu’s Submarine Network Solutions

Fujitsu‟s offerings for the submarine network solution include planning & designing
installation, commissioning and project management services for the submarine
network solutions deployment and installation. Fujitsu has the experience of
installing more than 70 submarine networks globally and supplies its Optical
Submarine Repeater series for the global submarine cable system deployments.
The company has deployed more than 2,500 repeaters globally.

Fujitsu supplies a range of network elements for Repeatered Submarine System and
WDM Capacity Upgrade System.

Its offering for Repeatered Submarine System includes Submarine Line Terminal
Equipment, System Supervisory Equipment, Power Feeding Equipment, Branching
Unit, Repeater, Tilt Equalizer, Shape Equalizer, Network Management System, SDH
interconnection Equipment.

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Figure 63: Fujitsu Repeatered Submarine System

Source: Fujitsu

WDM Capacity Upgrade System offering includes Expansion of existing Designed


capacity, Addition of Tributary and upgradation of vendor‟s system

Financial & Operational Highlights

Fujitsu organizes itself under 3 major business segments namely Technology


solutions (consisting of Services and System platforms), Ubiquitous Solutions
(consisting of PCs / Mobile Phones and Mobilewear) and Device Solutions (which
comprises of LSI Devices and Electronic Components).

Fujitsu reports its revenues under 4-major geographies namely Japan, EMEA, APAC
& China and The Americas, of which Japan is the largest revenue contributing
geography.

The consolidated Net sales for Fujitsu invcreased by 8.7% over the period FY2013-
14 to reach ¥4,762.4 billion (excluding the elimination ) driven by improved
performance of all its services segments across all the geographies.

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Figure 64: Fujitsu- Revenue across Geographies

Total revenues (2014) : ¥4,762.4 billion#


(in Percentage)
7.2%
10.2% Japan
EMEA
APAC & China
17.6% The Americas
65.0%

Source: Company Reports


#
Excludes elimination of ¥760.4 million
For the financial year ending March 31

Revenues across Japan increased by 4.8% over the period FY2013-14 to reach
¥3,465.1 billion (before elimination) on account of increase in the revenues from
its technology solution and devices solution offerings, despite decline in the
decline in revenues of its Ubiquitous Solutions. PCs and mobile phones sales
declined due to intensifying competition.

Fujitsu‟s revenues outside Japan (its overseas revenues) increased by 22.1% over
the period FY2013-14 to reach ¥1,865.4 billion (excluding elimination). This was
driven by increased in sales across all the major reported geography segments.

The revenues across APAC and China increased by 15.7% over the same period to
reach ¥421.9 billion (before elimination), whereas the revenues EMEA and
Americas region also witnessed a growth of 19.4% and 41.0% over the same
period.EMEA revenues increased by ¥152.1 billion over the period FY2013-14 to
reach ¥973.3 billion, whereas from the Americas region increased by 41.0% (¥112.3
billion) over the period FY2013-14.

Japan was the largest contributor of the total net sales for Fujitsu, with 65.0 of the
total revenues in FY2014.

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Figure 65: Fujitsu- Revenue across Geographies, 2012-2014
(in billion ¥)

Source: Company Reports


#
Excludes elimination
For the financial year ending March 31

Fujitsu‟s revenues from across all its revenue reporting regions has witnessed a
upwards trends in the financial year 2014. The revenue growth for the period 2013-
14 was the highest for the Americas region.

Figure 66: Fujitsu- Revenues by Services

Total revenues (2014) : ¥4,968.6 billion*


(in Percentage)
12.1%
Technology Solutions
Ubiquitous Solutions
22.7%
65.3% Device Solutions

Source: Company Reports


*
Includes eliminations
For the financial year ending March 31

The Technology solution business segment has been the largest contributing
business segment to Fujitsu‟s revenues over the last 3 financial years (FY2012,
FY2013 and FY2014). It contributed 65.3% of the total revenues of Fujitsu in
FY2014.

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Figure 67: Fujitsu- Revenues by Services, 2012-2014
(in billion ¥)

Source: Company Reports


Excludes eliminations of ¥ 191.2 mn in FY2012, ¥ 206.3 mn in FY2011 and ¥242.2 mn in FY2010
For the financial year ending March 31

The total revenues of Technology Solution increased by 10.2% over FY2013-14 to


reach ¥3,243.0 billion (excluding elimination). The revenues from Japan increased
by 6.1% over the same period to reach ¥2,054.2 billion (before elimination),
whereas the revenue from the overseas segment increased by 18.2% to reach
¥1,188.7 billion (before elimination).

Technology solution segment consist of two sub-segments namely Services and


Services Platforms. The services sub-segment comprises of Solutions / SI and
Infrastructure Services. The services platforms sub-segment comprises of System
Products and Network Products.

 The revenues from Services sub-segment increased by 10.1% over the period
FY2013-14 to reach ¥2,627.2 billion (before eliminations). Revenues from Japan
and Overseas geography was ¥1,600.5 billion (growth of 5.5% over FY2013-14)
and ¥ 1,026.6 billion (growth of 17.9% over FY2013-14.

− The revenues from Solutions/SI increased by 10.0 over the period FY2013-14
to reach ¥920.4 billion. Revenues from Infrastructure services increased by
10.1% over FY2013-14 to reach ¥1,706.7 billion, driven by steady growth of
outsourcing services, improved demand related for network services, from
the telecommunications carriers to sustain the increased volumes of
communications traffic.

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 The system platform sub-segment which comprises of System Products and
Network Products registered a growth of 10.9% over FY2013-14 to reach ¥615.7
billion (before elimination). This was mainly due to the increase 19.9 in
Overseas revenues over FY2013-14 to reach ¥162.0 billion, coupled with a 8.0%
increase in revenues from Japan which was ¥453.7 billion for FY2014.

− The System products revenues increased by 3.7%% over FY2013-14 to reach


¥272.7 billion, whereas Network products revenues increased by 17.4% over
the same period to reach ¥343.0 billion. The increase in Network products
revenues was owing to increased spending by the telcos to handle increased
volumes of communications traffic and to for expansion of their LTE
coverage.

Ubiquitous solutions revenues inceased by just 3.2% over the period FY2013-14, to
reach ¥1,125.4 billion (before elimination), due to decline in revenues from both
Japan.

Revenues (before elimination) from Japan were ¥ 794.4 billion in FY2014 as


compared to ¥823.0 billion in FY2014, whereas overseas geographies had revenues
of ¥331.0 billion in FY2014 as compared to ¥267.1 billion in FY2013.

 Ubiquitous solutions consists of two sub-segments namely PC/Mobile Phones and


Mobilewear. Revenues from PC/Mobile Phones decreased by 2.9% over the
period FY2013-14 to reach ¥799.3 billion due to lower sales prices of PCs
declined and stagnated sales of smartphones as a result of increased
competition and contraction in the market demand for feature phones.

The Device Solutions Business segment comprises of two sub-segments namely LSI
Devices

Electronic Components. The revenues from Device Solutions business segments


increased by 11.1% over the period FY2013-14 to reach ¥600.2 billion (without
elimination) due to increased sales in overseas geography which negated the
declined in sales in Japan. Revenues (before elimination) from Japan were ¥ 291.9
billion in FY2014 as compared to ¥ 295.9 billion in FY2013, whereas overseas
geographies had revenues of ¥ 308.3 billion in FY2014 as compared to ¥ 244.4
billion in FY2013.

 Revenues from LSI devices increased by 11.0% over FY2013-14 to reach ¥321.6
billion, whereas the revenues from Electronic components sub-segments also
increased by 11.0% over the same period to reach ¥280.2 billion.

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Table 15: Fujitsu- Operational Highlights, 2012-2014

FY-2014 FY-2013 FY-2012


Total Net Sales 4,762.4 4,381.7 4,467.5
Total Cost of Sales 3,493.2 3,177.9 3,232.1
of which R&D
221.4 231.0 238.3
Expenses
Operating Income 142.6 95.2 105.3
Net Income 48.6 (72.9) 42.7
Operating Margin 3.0% 2.0% 2.4%
Total Current Assets 1,866.4 1,722.2 1,701.7
Total Current
1,462.3 1,568.5 1,420.3
Liabilities
Source: Company Reports
Note: All Financial figures in mn Yen for the Financial Year ending 31 st March

6.1.1. Key Contract wins

Some of the major contract wins by Fujitsu in the recent years has been mentioned
below:

Table 16: Fujitsu- Major Client Wins

Airbus, Japan Aerospace Exploration Agency, SPring-8


2014
Center, Fukuoka Financial Group
Healthshare NSW, United Utilities, JAPANET TAKATA,
Meridian Energy, Foodstuffs North Island, Gatwick Airport,
2013
Salmat, Canon, Virgin Money, Nagoya University, Libraries NI,
Telus, Senior Care, Kyoto University
Asciano, BAA, Perpetual Limited, Osaka City, Hallmark Cards,
2012
Hartela, DENSO Corporation, Nagasaki Medical Center,
Kakogawa City Hospital Organization, Blue Cross and Blue
Shield of North Carolina, University of Tokyo's Institute for
Cosmic Ray Research, G4S, Dainippon Sumitomo Pharma,
2011
International Personal Finance (IPF),Maruhiro Department
Store Co., Ltd., Asahi Group, McDonald‟s UK, Kurimoto, WA
Health, Police Service of Northern Island, Daiwa Next Bank
##
Refers to the select overall client wins for the calendar year

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6.2 Huawei Marine Networks

Overview

Headquartered in China, Huawei Marine Networks is a joint venture company of


Global Marine Systems and Huawei Technologies Ltd. It provides system design,
integration and installation services for the global submarine cable systems.

The company has a manufacturing unit at Dongguan in China. It also has R&D
institutes at Beijing (China) and Chelmsford (United Kingdom)/

Offerings (Solutions, Services, Products)

The offerings from Huawei Marine Networks is classified broadly under 3 categories
namely Solutions, Services and Products

Figure 68: Huawei Marine Networks Offerings

Source: Huawei Marine Networks

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Solutions Offerings:

The solutions offerings from the company include building of a new cable systems
as well as up gradation of the existing cable system.

 100G: 100G solutions offering from Huawei provides a bandwidth capacity of


upto 8Tbps over a single fiber. This offering facilitates the telcos to upgrade
their network from 10G/40G to upto 100G.

 Repeatered System: It enables the company to deploy a high speed and


capacity cable system to cater to the diverse capacity requirements of the
telcos. It provides high bandwidth of upto 160*10Gbit/s.

 Unrepeatered System: Huawei Marine‟s Unrepeatered systems enable the


submarine cable system, to offer a stable platform for accessing multi-services.
By leveraging the UHBA (Ultra High Boost Amplifier) and Enhanced Raman and
ROPA (Remote Optical Pump Amplifier) technologies, the Huawei can provide
high long haul transmission upto a distance of more than 500kms. Additionally,
it also supports 40Gbit/s technology, thereby enabling it to further provide
capacity of 3.84Tbps per fiber pair.

 Network Upgrades: Huawei provides also upgradation services for the existing
network either deployed by it or deployed by other vendors as well. It offers
three variants of upgradation options namely, Overlay wavelength upgrade,
Full-SLTE replacement upgrade and upgradation on dark fibers.

Services Offering:

The services offered include Desktop Study, System Design, Route Survey,
Installation, Training and Maintenance services.

 Desktop Study: Huawei Marine offers impersonal as well as comprehensive


study reports to the customers.

 System Design: Based on the inputs from Desktop Study, the company provides
a detailed specification for the construction of the cable network which
includes cable type selection, fiber configuration, terminal equipment
configuration, network monitoring and management solutions etc.

 Route Survey: It includes activities such as assessing the water depth, soil
conditions, submarine terrain for the submarine cable network deployment.

 Installation: Huawei Marine helps the companies in the land installation as well
as marine installation of the cable networks.

 Training: Huawei Marine also provides the customers with training solution on
technology as well as assisting them with deploying and operating the
submarine cable system operation.

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 Maintenance: Huawei Marine provides 3-level technical support system for the
terrestrial terminal equipment and series maintenance options to the submarine
equipment.

Products Offerings:

Huawei Marine offers a portfolio of products to facilitate the deployment of


submarine networks. This includes

 Submarine Line Terminal Equipment (SLTE): It includes OptiX BWS 1600S


which offers huge transmission capacity coupled with ultra long-haul
transmission capability and access to multiple services capabilities.

 Submarine Line Monitor (SLM): The SLM 1630 is a submarine line monitor
(SLM), which is used to monitor the working states of wet plant systems and is
also used to locate faults.

 Network Protection Equipment (NPE): The OptiX OSN 9500 is an intelligent


optical switching system which supports flexible networking modes; multi-
service access and large switching capacity for submarine cable systems to
enable them meet the capacity requirements for various applications.

 Network Management System (NMS): The iManager U2000 offering from


Huawei Marine offers a network management system for terrestrial as well as
submarine cable systems.

 Repeater: The RPT 1660 repeater provides support for 2,4,6 fiber pairs and
offers a optical loop back facility to facilitate in performance monitoring and
fault location services.

 Branching Unit: The BU 1650 branching unit (BU) offering from Huawei Marine
enables the fiber pairs to be route across to multiple destinations in the
submarine cable system.

Key Contract wins

Some of the major contract wins by Huawei Marine Networks in the recent years
has been mentioned below:

Table 17: Huawei Marine Networks- Major Client Wins

2015 Government of the Republic of Equatorial Guinea


2014 Rostelecom
2012 Hibernia Atlantic‟s Global Financial Network
##
Refers to the select overall client wins for the calendar year

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6.3 TE Connectivity

Company Overview

TE Connectivity Ltd alongwith its subsidiaries is involved in the design and


manufacturing of sensors and connectivity solutions. It in the year 2014 realigned
its businesses within some of its operating segments to align its prduct portfolio.
The company operates through its four operating segments namely Transportation
Solutions, Industrial Solutions, Network Solutions, and Consumer Solutions.

The company sells its products directly to manufacurers and well as leverages third
party distributors for the sales of its products in across 150 countries.

The company actively pursues acqusitions to enhances its capabilities and


strengthen its product offeriengs. Some of the acquisitions maed by TE
Connectivity includes Measurement Specialties (2014), SEACON (2014), Deutsch
(2012), ADC Telecommunications (2011) etc.

TE Connectivity was formerly known as Tyco Electronics Ltd and is based at


Schaffhausen, Switzerland.

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Table 18: TE Connectivity- Key Information

FY2014 FY-2013 FY-2012


Total Net Sales 13.9 13.3 13.3
Revenues
Contribution by
Geography
EMEA 35% 34% 34%
Asia 33% 33% 34%
Americas 32% 33% 32%
Sales by Segment*
Transportaion
6.1 5.5 5.1
Industrial
3.3 3 3
Network Solutions 2.9 3.1 3.3
Consumer Solutions 1.6 1.7 1.9
Sale Contribution by
Industry Vertical
Automotive 44% 41% 39%
Industrial
Equipment 10% 9% 7%
Telecom Networks 9% 9% 8%
Aerospace,
8% 8% 6%
Defence, Oil & Gas
Consumer Devices 7% 8% N.A.
Energy 6% 6% 7%
Data
5% 6% N.A.
Communications
Enterprise Networks 5% 5% N.A.
Appliances 4% 5% 4%
SubSea
2% 3% N.A.
Communication
Total Cost of Sales 9.2 9.0 9.2
of which R&D
0.68 0.68 0.69
Expenses
Income from
2.0 1.6 1.5
Continuing Operations
Net Income 1.8 1.3 1.1
Source: Company Reports
Note: All Financial figures in USD billion for the Financial Year ending 26th Sep, 2014

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Offerings (Solutions, Applications, products, Services)

TE Connectivity operates through its four operating segments namely


Transportation Solutions, Industrial Solutions, Network Solutions, and Consumer
Solutions.

Figure 69: Solutions offered by TE Connectivity

Transportation Solutions: The solutions offered by the Transport solutions


segment is basically targetted towards the automotive market, which includes
industrial vehicles, commercial vehicle, and hybrid and electric vehicle markets.

Industrial Soutions: The solutions offered by the segment is targetted for the use
in sectors which includes industrial equipment; aerospace, defense, oil, and gas;
and energy sectors.

Network Solutions: Network Soutions offering includes infrastructure components


and systems and is targetted for the telecoms and data communications market.

Consumer Solutions: The offerings by this segment primarily includes electronic


components, such as connectors, circuit protection devices, antennas, relaysetc.

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Financial & Operational Highlights

TE Connectivity organizes itself under 4 major business segments namely


Transporation, Industrial, Network Solutions and Consumer Solutions. Further, it
reports its revenues 3 geogrpahic segments namely EMEA, Asia and Americas.

The net sales for TE Connectivity invcreased by 4.8% over the period FY2013-14 to
reach $13.9 billion, driven by improved performance of ist Automotive and
Industrial equiments segment.

Figure 70: TE Connectivity- Revenue across Geographies

Total revenues (2014) : $13.9 billion


(in Percentage)

EMEA
32.0% 35.0% Asia
Americas

33.0%

Source: Company Reports


For the financial year ending September 26

Revenues across EMEA region increased by 7.8% over FY2013-14 to reach


$4.9billion, and was the largest revenue contributing segment. Revenues from Asia
almost remained constant, whereas revenues from the Americas regions witnessed
a decline of 1.6% over the period to reach $4.5 billion.

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Figure 71: TE Connectivity- Revenue by Segments, 2012-2014
(in $ billion)

 Transportation is the largest revenue contrbutings egment for TE Conenctivity


and accounted for ~44% of the total revenues for FY2014.

 Revenue from the transporation segment increased by 10.9% over FY2013-14 to


reach $6.1 billion, owing to the strengthening of certain foreign currencies
which had a positive impact on its net sales by $33 million.
 The automotive end market witnessed a net sales increment of 10.4%
(organic) over the period FY2013-14, driven by growth in all the regions.
Asia-Pacific region witnessed anet sales incements of 8.9% driven by
increase in demand from China, which negated the decline in sales from
Japan. Though the Southern American region witness declineing sales owing
to weaker economic conditions, the net sales in Americas region increased
by 8.9% driven by increased demand from the North American region. EMEA
region witness a net sales increase of 8.6% over FY 2013-14 owing to
increase in demand for export to other regions, though the demand from the
local region remained stagnant.
 In the comemrical vehicle segment, revenues increased owing to increase in
demand in the North American region.

 Net sales in industrial segment inceased by 10% over FY2013-14 to reach $3.3
billion, owing to improve in the market scenario in the Asia-Pacific and EMEA
region. Despite a decline in the revenues from Industrial Equipmet and Energy
segment, the revenue from Aerospace, Defense, Oil, and Gas segment increased.

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 Net Sales from Network Solutions segment dclined by 6.1% to reach $2.9 billion,
owing to the weaking to certain foreign currencies which impacted its net sales.
 However, its organic net sales for the Telecom networks increased by 2.6%
over FY2013-14 driven by increase in the fiber business in the EMEA region.
 Organic net sales of its data communication segment also declined by 5.5%
in FY 2014, owing to weak market demand and its exit from certain product
lines.
 The Enterprise Network witnessed an organic net sales inceasement of 4.2%
over FY2013-14, driven by the growth n datacenter in North America and
India.
 Reduced project volume impacted its Subsea Communication segment,
where its witness its net organic sales decline by 28.7%.

 Revenues of its Consumer solutions segment also declined by 5.9% over FY2013-
14 to reach $1.6 billion, owing to decline in its Consumer devices segment.
 Consumer devices segment witness a net organic sales decline of 5.4% over
FY2013-14, due to decline in mobile phone and personal computer sales,
which was partially offset by incarease in the tablet sales.
 Appliances segment witnessed a net organic sales increment of 6.3% over
FY2013-14, due to increase in demand from the Asia-Pacific region
(primarily) and also from the Americas region.

TE Connectivity reports its revenues under 10 major sectors namely SubSea


Communications; Appliances; Enterprise Networks; Data Communications; Energy;
Consumer Devices; Aerospace, Defence, Oil & Gas; Telecom Networks; Industrial
Equipment and Automotive sector.

Automotive and Industrial sector were the largest revenue contributing sectors in
FY 2014, with Automotive sector and Industrial sector contrbuting 44% and 10% of
the total revenues in FY2014.

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Figure 72: TE Connectivity- Revenue by Industry Verticals
(100%=$3.9 billion)

Table 19: TE Connectivity- Operational Highlights, 2012-2014

FY-2014 FY-2013 FY-2012


Total Net Sales 13.9 13.3 13.3
Total Cost of Sales 9.2 9.0 9.2
of which R&D 0.68 0.68 0.69
Expenses
Income from Continuing 2.0 1.6 1.5
Operations
Net Income 1.8 1.3 1.1
Operating Margin 12.9% 9.6% 8.8%
Total Current Assets 7.5 6.3 6.5
Total Current Liabilities 4.0 3.9 4.0
Source: Company Reports
Note: All Financial figures in $ billion 26th September

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6.4 NSW

Overview

NSW (Norddeutsche Seekabelwerke GmbH) is a leading provider of submarine


telecommunications cables, overhead and special cables for the offshore industry,
land-based applications. It also supplies plastic products (clever plastic products
for packaging and protection).

The company was founded in the year 1889 and is headquartered at Nordenham, in
Germany. NSW is a wholly owned subsidiary of General Cable Corporation group of
companies since 2007.

Offerings (Solutions, Applications, products, Services)

The product offering of NSW includes Cable and Plastic Products.

Figure 73: Solutions offered by NSW

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Cable offerings from NSW includes Telecommunications Cable, Power Cables,
Offshore Cables, Landcable and other services

 Telecommunication Cable: It includes Fiber-optic Submarine Cables &


Accessories, communications requirements of offshore oil fields and offshore
power generation systems and overhead optical ground wires for terrestrial
backbone telecommunications lines.

 Power Cables: It includes Submarine Power cables and Winding wire.

 Offshore Cables: It includes Umblicals and Net Sounder Cables.

 Landcable: It includes cables to carry high-voltage, energy and


telecommunications cable to cater to the requirements of clients of
communications, construction, industry and power utilities section.

 Services: It provides a portfolio of testing and cable installation services. It


also includes services like project management, documentation, training,
performing studies and evaluations, contract negotiations, on-site analysis,
cable route selection etc.

Plastic Products includes Material Protection and Packaging, Leaf Guard, Filter
Technique, Environmental Technology and Power Transmission and Conveying
solutions

 Material Protection and Packaging: It includes surface protection (POLY-


NET surface protection protects the surfaces of articles through the nets),
Packaging Net (for packing of small articles), Spacer Grids (for storing
solutions with minimum space requirements), Spacers for Washing processes
(for providing surface protection and facilitates in optimal cleaning).

 Leaf Guard: It is a mesh tube made of recyclable polyethylene slit along its
length and is used for cleaning clogged surfaces.

 Filter Technique: It includes offerings to support water purification,


filtration, electroplating and other such related applications.

 Environmental Technology: It includes BIO-NET, SESSIL and NOR-PAC and


are used as support materials for wastewater treatment.

 Power Transmission and Conveying: It includes SECA and SECAflex family of


timing belts, which can take high loads.

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6.5 ZTT International Ltd

Overview:

ZTT Group offers a portfolio of products for the communication industry and has
products offerings for both Electrical Power and Communication industry, and owns
more than 30 subsidiaries.

The company has offices in more than 40 countries globally including Canada,
America, Australia, Thailand, Indonesia and India. It also has factories in Brazil,
India and Uzbekistan. The company also supplies products to more than 106
countries globally.

Some of the leading customers of the company includes China Netcom, China
Mobile,China Telecom, China Railway Telecom, China Unicom.

Table 20: ZTT- Key Information

FY2013 FY-2012 FY-2011


Operating Revenue 6,771.33 5,812.21 4,873.97
Operating Profit 613.5 495.22 404.83
Operating Profit 9.06% 8.52% 8.31%
Margin
Total Assets 8,985.26 7,874.02 6,908.21
Note: All Financial figures in CNY million

Offerings (Solutions, Applications, products, Services)

ZTT International Ltd offers a portfolio of products for Power system, Telecom
System, Industry, New Energy, Alloy, Machine Manufacturing and Submarine System

Figure 74: ZTT Solutions Offerings

Source: ZTT

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 Power System: ZTT International‟s Power System offering includes Power
Cable (Low voltage, Medium voltage, High voltage), fittings, OPGW,
conductors and Aluminum-Clad Steel Wire.

 Telecom System: The telecom system products of ZTT International


includes Optic fiber, Optic fiber cable, FTTX and Radio Frequency cables.

 Industry System: Industry System products include Marine cables.

 New Energy: Products offered for New Energy offering includes Lithium Ion
Battery, Solar Cell Backsheet, Econova Homes and Photovoltaic technology
cells.

 Alloy: It includes copper strips and copper steel products.

 Machine Manufacture: It includes Optical fiber drawing tower, Optical fiber


special drawing tower, Optical fiber proof-testing and rewinding machine,
Optical fiber proof-testing and rewinding machine, Optical fiber coloring and
rewinding machine, Optical fiber ribbon machine and Stainless steel optical
fiber loose tube welding line

 Submarine System: It comprises of an array of products which includes


Submarine Composite Cable (MV/LV, HV/EHV, HVDC), Submarine FO Cable,
Hybrid Cable, One Stop Shop (comprising of complete system of accessories
for installation, protection, termination and maintenance).

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6.6 Nexans

Company Overview

Headquarted at Paris in France, Nexans provides an array of solutions related to


cable and cabling for the customers globally. It provides its support, services and
solutions targeted at the customers belonging to 4 major categories namely Energy
resources (Oil & Gas, Mining and Renewables), Building (Commercial, Residential
and Data Centers), Transportation (Road, Rail, Air, Sea) and Power transmission
and distribution (submarine and land).

Nexans acquired AmerCable for ~$275 million in 2012, which enabled it to


strengthen and expand its expertise in the energy infrastructure market. Earlier, in
ordder to expand and strengthen its presence outside the European market in
countries like China, India, Brazil, Russia, Africa, Nexans acquired a 75% stake in
Shandong Yanggu Cable, a China-based power cable manufacturer in 2011.

The company has presence in across more than 40 countries globally.

Table 21: Nexans- Key Information

FY2014 FY-2013 Y-2012


Total Net Sales 6,403 6,711 7,178
Revenues by Geography
France 918 929 1,089
Germany 776 751 729
Norway 693 699 673
Other 4,016 4,332 4,687
Revenue by Segment
Transmission, distribution & 2,327 2,469 2,544
Operators
Industry 1,487 1,550 1,554
Distributors & installers 1,814 1,952 2,214
Others 775 740 866
Operating Income -35 -182 142
Net Income -170 -330 25
Source: Company Reports
#
Excludes eliminations
Note: All Financial figures in million Euros for the Financial Year ending 31st December

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 119
Offerings (Solutions, Applications, products, Services)

The services offerings from Nexans is organized under 3 main categories namely,
Energy, Electrical Wires and Telecom.

Figure 75: Nexans Solutions Offerings

Telecom: The telecom offerings from Nexans includes Data Transmission cables,
Telecom interconnect components and Telecom network cables.

− Data transmission cables includes Telecom outdoor cables (such as Copper


subscriber access cables, Fibre optical cables, Coaxial cables, Optical Hybrid
cables and Optical cables for power lines) and Fibre/copper LAN, telephone
& CATV cables (such as Fibre optic LAN cables, Copper LAN cables,
Telephone installation wires & cables, Coaxial CATV cables and Electronic
installation cables).

− Telecom Interconnect components includes Fibre solutions (like Adaptors,


pigtails, patchcords; Indoor only closures; ODF & Cabinets; Cabling
accessories and tools; Racks and Subracks; Preterminated cables; Outdoor
closures (suitable for indoor) and Watertight closures).

− Telecom network cables includes Copper long distance cables, Copper


subscriber access cables and Fiber optic cables.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 120
Financial & Operational Highlights

Nexans reports its revenues under 4 geographies namely France, Germany, Norway
and others. It also organizes its reporting under 4 divisions namely Transmisson,
Distribution & Operators; Industry; Distributors & installers and Others.

The total revenues decreased by 4.6% over FY2013-14 to reach €6,403 million
owing to decline in revenues from France and other geographies. Despite the
decline in revenuesover the past 3 years, France still remains the largest revenue
contrbuting geography.

Figure 76: Nexans- Revenue across Geographies

Total revenues (2014) : €6,403 million


(in Percentage)

14.3% France
Germany
12.1% Norway
Other
62.7% 10.8%

Source: Company Reports


For the financial year ending December 31

Revenues from France, decreased by 1.2% over the period FY2013-14 to reach €918
million, whereas from Norway is declined by 0.9% over FY2013-14 to reach €693
million. Revenues from Germany increased by 3.3% to reach €776 million over the
same period. The revenues from other geographies also decreased by 7.3% to reach
€4,016 million owing to volality existing in the political as well as economic
conditions existing in different countries. Some of the key factors which led to the
decline in revenues from other geographies include political tensions prevailing in
Russia & Middle East, decline in market conditions for cable market in South
America and Australia.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 121
Figure 77: Nexans- Revenue across Geographies, 2012-2014
(in billion Euros)

Source: Company Reports


For the financial year ending December 31

Figure 78: Nexans- Revenues by Segment

Total revenues (2014) : €6,403 million


(in Percentage)
12.1% Transmisson, Distribution & Operators

36.3% Industry
28.3%
Distributors & installers

23.2% Others

Source: Company Reports


For the financial year ending December 31

The Transmission, Distribution & Operators segments contributed 36.3% of the total
revenues in FY2014.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 122
Figure 79: Nexans- Revenues by Segments, 2012-2014
(in million €)

Source: Company Reports


For the financial year ending December 31

Revenue from all the segments continue to witness a declining trend. Transmission,
Distribution & Operators still continues to be the largest revenue contrbuting
segment for the past 3 years- and the revenues from the same also continues to
decline.

Table 22: Nexans- Operational Highlights

FY-2014 FY-2013 FY-2012


Total Net Sales 6,403 6,711 7,178
R&D Expenses 75 76 75
Operating Income -35 -182 142
Net Income -170 -330 25
Operating Margin -0.5% -2.7% 2.0%
Total Current Assets 3,338 3,497 3,644
Total Current Liabilities 2,100 2,300 2,174
Source: Company Reports
Note: All Financial figures in million Euros for the Financial Year ending 31st December

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 123
Key Contract wins

Some of the major contract wins by Nexans in the recent years has been mentioned
below:

Table 23: Nexans- Major Client Wins

2015 Elia, Bombardier Transportation, Statoil, ENERGINET.DK


2014 NSP Maritime Link Inc
China National Nuclear Corporation, Statoil , Hydro Electric (SHE)
2013
Transmission plc, OneSubsea, Infrabel, Nalcor Energy
SNCF, Hyundai Rotem, Libya’s PEWCO, Statoil, Statoil,NorthwindNV,
2012
Tata Power’s Strategic Electronics Division
Rete FerroviariaItaliana, Chevron U.S.A. Inc, Statoil, RATP, Petrofac,
Offshore-Windpark RIFFGAT GmbH & Co. KG,Switzerland’s CFF, IE
2011 Madeira consortium , Norske Shell, Statoil,Terna, Toshiba Sistemas
de Trasmissão e Distribuição do Brazil Ltda,Dong Energy, Subsea 7,
Huawei Marine Networks Co Ltd, Energinet and Statnett,
##
Refers to the select overall client wins for the calendar year

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 124
6.7 OCC Corporation

Overview

Founded in the year 1948, OCC Corporation (Ocean Cable & Communications
Corporation) is involved in the manufacturing and marketing of submarine optical
fiber and other related products.

Headquartered in Japan, the company provides its products to some of the leading
companies in Japan which includes NTT Group, KOKUSAI CABLE SHIP CO.,LTD, KDDI
Corporation, Sumitomo Electric Industries, NEC Group, East Japan Railway
Company, West Japan Railway Company etc.

Offerings (Solutions, Applications, products, Services)

The main product offerings from OCC is offered under 3 broad categories namely
Optical fiber cable and accessories, Metal Communication Cable and Coaxial Cable.

Figure 80: OCC Offerings

 Optical fiber cable and accessories includes Optical Submarine Cable, M-PAC
(Metal Packed armored Cable) and Portable M-PAC.
− The optical submarine cable offering includes SC300 and SC500 cable.
 Metal Communication Cable includes Conductors, Winding Wire and
Wirerods.
 Coaxial Cable includes Coaxial cable for CATV and High-frequency Coaxial
cable

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 125
Key Contract Wins

Some of the major customers of OCC Corporation includes NTT Group, KOKUSAI
CABLE SHIP CO., KDDI Corporation, Sumitomo Electric Industries, NEC Group, East
Japan Railway Company, West Japan Railway Company, Odakyu Electric Railway,
Mitsubishi Heavy Industries, Oki Electric Industry Co, Kyushu Electric Power Co.,
Tokyo Electric Power Company and Kansai Electric Power Co.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 126
6.8 NEC

Company Overview

NEC is a leading provider of IT products and services to the customers of diverse


industry verticals such as business enterprises, communications services providers
and to government agencies. The network solutions business is involved in the
design and provides broadband network systems, mobile and wireless
communications network systems, mobile handsets, broadcast, optical transmission
systems, submarine cable systems and other systems to the customers.

The company is headquartered in Japan and reported net sales of ¥3,043.1 billion
in the financial year 2014.

Table 24: NEC- Key Information

FY2014 FY-2013 FY-2012


Total Net Sales 3,043.1 3,071.6 3,036.8
Revenues by
Geography
Japan 569.1 483.1 481.5
Overseas 2,473.9 2,588.5 2,555.3
Revenue by Services*
System Plaftorm
780.8 744.4 711.0
Business
Public Business 738.4 680.7 649.5
Telecom Carrier
725.8 709.2 659.3
Business
Enterprise Business 272.3 251.6 222.1
Others 525.9 685.7 794.9
Total Cost of Sales 2128.4 2142.2 2128.9
of which R&D
142.7 151.7 161.9
Expenses
Operating Income 106.2 114.6 73.7
Net Income 33.7 30.4 -110.3
Source: Company Reports
Note: All Financial figures in billion Yen for the Financial Year ending 31st March

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 127
6.7.1. Offerings (Solutions, Applications, products, Services)

NEC offers a portfolio of products which includes Servers, Storages solutions,


Embedded Systems, Global enterprise Solutions, Cloud and SDN solutions, Public
Safety Solutions, Network products etc.

Figure 81: NEC- Solution Offerings

The offering for Submarine Systems is offered under its Networking Products
portfolio.

The services offered under its Submarine Systems offering includes Desktop studies
for new builds and cable upgrades, System design, Marine surveys, Permitting,
Installation and commissioning of wet and dry plant, 2 nd and 3rd line support
functions, Spares management, Ongoing operations management and Full turnkey
solutions.

 Submarine Systems product offerings includes Repeatered Systems (NS Series),


Repeaterless Systems (SLR320 Series) and Cables
− Repeatered Systems (NS Series) - It provides a transmission capacity of more
than 3.5TB per fiber pair.
− Repeaterless Systems (SLR320 Series) - It provides capabilities for submarine
transmission for links up to 400km and beyond.
− Cables: It provides a range of cable offerings for use in submarine cable
communications.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 128
Financial & Operational Highlights

NEC Fujitsu organizes itself under 5 major business segments namely Public
Business,Enterprise Business, Telecom Carrier Business, System Plaftorm Business,
Others.

The total net sales declined by 0.9% over the period FY2013-14 to reach ¥3,043.1
billion, due to decline in revenues from others business segments, which offset the
reveneu growth from other segments.

Figure 82: NEC- Revenue across Business Segment

Net Sales (2014) : ¥3,043.1 billion


(in Percentage)

23.2% System Plaftorm Business


34.5% Public Business
12.0%
Telecom Carrier Business
32.6% Enterprise Business
32.1%
Others

Source: Company Reports


For the financial year ending March 31

System Platform Business (which includes hardware and software revenues)


reported a 4.9% increase in the revenues over the period FY2013-14. The total
revenues reached ¥780.8 billion

Revenue from Public Business segment (includes Systems Integration (Systems


Implementation, Consulting),Maintenance and Support, Outsourcing/Cloud
Services, System Equipment offerings ) increased by 8.5% over the period FY2013-
14 to reach ¥738.4 billion.

Telecom Carrier Business segment (which offers Optical Transmission Systems,


Submarine Cable Systems,Routers/Switches, Mobile Phone Base Stations, Mobile
Backhaul (“PASOLINK”) services) revenues increased by 2.3% over the same period
to reach ¥725.8 billion.

Enterprise Business segment (which offers Systems Integration (Systems


Implementation, Consulting), Maintenance and Support, Outsourcing/Cloud
Services) revenues increased by 8.2% over the same period to reach ¥272.3 billion

Revenues from others business segments (comprising of Smart Energy,


(Electrodes/Energy Storage Systems, Energy Management Systems, EV/PHV
Charging Infrastructure, Solutions for Utilities, Mobile Phones, Lighting Equipment)
declined by 23.3% over the period to reach ¥525.9 billion.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 129
Figure 83: NEC- Revenue across Geographies,2012-2014
(in million ¥)

Source: Company Reports


For the financial year ending March 31

Japan continues to be the major revenue contributing segment and accounted for
81.3% of the total revenues in FY2014.

Table 25: NEC- Operational Highlights

FY-2014 FY-2013 FY-2012


Total Net Sales 3,043.1 3,071.6 3,036.8
Total Cost of Sales 2128.4 2142.2 2128.9
of which R&D
142.7 151.7 161.9
Expenses
Operating Income 106.2 114.6 73.7
Net Income 33.7 30.4 -110.3
Total Current Assets 1502.9 1513.8
Total Current Liabilities 985.5 1123.6
Source: Company Reports
Note: All Financial figures in bn Yen for the Financial Year ending 31 st March

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 130
6.9 Alcatel-Lucent

Company Overview

Alcatel-Lucent provides Internet protocol (IP), cloud networking and ultra-


broadband access services to the companies globally. The Core Networking
segment offerings from Alactel-Lucent includes carrier Ethernet, IP routing,
network functions virtualization and SDN applications and infrastructure services.
It also offers optical networking equipment for the information transportation by
leveraging fiber on land or using using submarine cables. Access segment offering
includes wireless products & services, small cells, fixed access services and
licensing services.

Submarine Network Solutions offerings includes survey, system design,


manufacturing, installation and maintenance of submarine cable systems. The
company leverages its fleet of 7 vessels for the deployment and maintence of the
cable networks and has been involved in the deployment of more than 50 cable
systems globally for ~30 clients globally.

Founded in the year 1898, the company is headquartered in France and reporrted a
revenue of €13,178 million in FY2014.

Table 26: Alcatel-Lucent- Key Information

FY2014 FY-2013 FY-2012


Total Revenues 13,178 13,813 13,764
Revenues by Geography
France 771 798 669
Other Western Europe 1,929 2,125 2,255
Rest of Europe 282 361 429
China 1,342 1,097 1,053
Other Asia-Pacific 1,289 1,230 1,363
USA 5,488 5,986 5,339
Other Americas 1,009 1,209 1,633
Rest of world 1,068 1,007 1,023
Revenue by Reportable
segment
Core Networking 5,966 6,151 6,233
Access 7,157 7,447 7,293
Others 41 210 195
Total Cost of Sales 8,770 9,491 9,753
of which R&D
Expenses 2,215 2,268 2,330
Net Income -83 -1,294 -2,088
Source: Company Reports
Note: All Financial figures in million Euros for the Financial Year ending 31st December

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 131
Offerings (Solutions, Applications, products, Services)

Alcatel- Lucent reports its revenues under three reportable segments namely
Access, Core Networking and others. Core Networking Solutions offerings includes
IP Routing, IP Transport and IP Platforms. Access segment offering includes
Wireless, Fixed Access, Licensing and Managed Services

Alcatel Lucent offers a portfolio of services which includes IMS Communications,


Mobile Backhaul, IP Networking, IP Video, Submarine services etc.

Submarine networking solutions from Alcatel-Lucent ranges includes services such


as route selection, route survey, system design, manufacturing, installation of the
submarine cable and maintenance of the cable system.

Its wet plant component offering includes Cables, Repeaters and Branching Units.
Its Dry plant component includes Power Feeding units, Submarine Line terminals
and SDH and OTN Interconnection Equipments.

Figure 84: Alcatel-Lucent- Solutions Offerings

The company leverages its fleet of 7 vessels for the deployment of new submarine
cable system and maintainance of existing cable systems

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 132
Financial & Operational Highlights

Alcatel- Lucent reports its revenues under three reportable segments namely
Access, Core Networking and others.

Figure 85: Alcatel-Lucent- Revenue across Geographies

Total revenues (2014) : €13,178 million


(in Percentage)
USA
8.1% China
7.7% France
41.6% Other western europe
9.8%
2.1% Rest of Europe
Other Asia-Pacific
14.6% Other Americas
5.9% 10.2% Rest of world

Source: Company Reports


For the financial year ending December 31

It further reports its revenues under 8 major geographical segments namely USA,
China, France, Other Western Europe, Rest of Europe, Other Asia-Pacific, Other
Americas andbRest of world

The total revenue for Alcatel-Lucent declined by 4.6% over the period FY2013-14,
due to decline in revenues for all the 3 reportable segments. The revenues also
witnesssed a declining trend over the same period for all the regions except for the
APAC region (comprising of China and Other Asia-Pacific region) and Rest of the
World geography.

Revenues from US decreased owing to decline in revenues from legacy optical and
Fixed Access services, which offset the increment in revenues from LTE services.

Revenues from China increased by 22.3% to reach €1,342 million over the period
FY2013-14, owing to increased deployment of LTE by telcos in the country.

Revenues from within Europe by 3% in France, 9% in Other Western Europe and 22%
in Rest of Europe.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 133
Figure 86: Alcatel-Lucent- Revenue across Geographies, 2012-2014
(in million Euros)

Source: Company Reports


For the financial year ending December 31

USA continues to be the largest revenue contributing for the past 3 years and
contributed 41.6% of the total revenues in FY2014 .

Figure 87: Alcatel-Lucent- Revenues by reported Segments

Total revenues (2014) : : €13,164 million


(in Percentage)
0.3%
Core Networking
45.3% Access
54.4% Others

Source: Company Reports


For the financial year ending December 31

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 134
The revenue from Core Networking services decreased by 3.0% over the period
FY2013-14 to reach €5,966 million, owing to the decline in revenues of IP Transport
division and IP Platforms division, which offset the increase in the revenues of IP
Routing division. IP Routing division revenues increased by 5.1% to reach €2,368
million in 2014, whereas revenues of IP Transport division and IP Platforms division
declined by 0.2% and 16.5% respectively during the same period to reach €2,114
million and €1,484 million.

Revenues from Access Services declined by €290 million to reach €5,966 million
over the period FY2013-14, due to the decline in revenues from its Fixed Access
division, Managed Services division and Licensing division, despite an increase in
the revenues from the Wireless Access division. Revenues of Wireless Access
division increased by 3.9% over the period FY2013-14 to reach €4,685 million.
However, the revenues of Fixed Access division, Managed Services division and
Licensing division declined by 1.0%, Managed Services division by 53.4% and
Licensing division by 28.6% to reach €2,048 million, €369 million and €55 million
respectively, in the year 2014.

Revenues from the Other segments (sold off in early 2014) which comprised of its
Government business was €41 million in 2014.

Figure 88: Alcatel-Lucent- Revenues by reported Segments, 2012-2014


(in million Euros)

Source: Company Reports


For the financial year ending December 31

Access services comprising of its Fixed Access, Managed Services, Licensing services
and Wireless Access services continue to be the largest revenue contrbutings
segment for the past 3-years.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 135
Table 27: Alcatel-Lucent- Operational Highlights

FY-2014 FY-2013 FY-2012


Revenues 13,178 13,813 13,764
Total Cost of Sales 8,770 9,491 9,753
of which R&D 2,215 2,268 2,330
Expenses
Net Income 83 1,294 2,088
Total Current Assets 11,098 11,744 10,646
Total Current Liabilities 7,681 8,279 8,313
Source: Company Reports

Note: All Financial figures in mn Euros for the Financial Year ending 31 st December

Key Contract wins

Some of the major contract wins by Fujitsu in the recent years has been mentioned
below:

Table 28: Alcatel-Lucent- Major Client Wins

2014 AINMT Holdings AB


2013 Sprint
##
Refers to the select overall client wins for the calendar year

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 136
Disclaimer:

Please note that the author does not necessarily own each component of the
content included in the work and the findings, forecasts and conclusions expressed
in this work are as based on the data obtained through secondary research. The
facts/data of this report is believed to be correct at the time of publication, but
cannot be guaranteed. Also, the findings and conclusions are based on primary and
secondary resources, and hence the accuracy of the same cannot be guaranteed.
Though utmost care has been taken while calculating the statistical data, any error
in the same would not be the responsibility of the author. The author/publisher
accepts no liability for the actions taken, which is based on the information, which
may subsequently be revised/or prove to be incorrect.

Global Submarine Cable Systems: Facilitating Carriers meet the Data transmission & Bandwidth demand Page 137

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