Submarine Cable Investment There Is an Increasing

Submarine Cable Investment

There is an increasing capacity and reliability on submarine cables as they present faster and higher quality connectivity around the globe. At present, one million kilometers of underwater cables have been installed, forming a network to carry large amounts of traffic between all continents (About fiber-optic submarine cable networks, 2005). That is enough cable to go around the world thirty times. The capacity is 320 Gbit/s per fiber, which is enough to transmit more than fifteen million voice circuits simultaneously on a typical underwater cable comprised of four pairs of optical fibers.

The capacity is most important for reducing the cost of long distance communication as a result of; 1) extraordinary capacity of the technology lowering the costs per circuit, 2) the high supply of capacity owing to huge amounts of investment, and 3) the stiff competition between companies using submarine cable networks. All long distance intercontinental signals inevitably flow into the backbone composed of fiber-optic and terrestrial networks. With the ring-based self-healing structure, all information will reach its destination with high quality. The submarine cable network works silently and efficiently, ensures very high and immediate availability, and is protected by a medium that shows no changes that might undermine integrity.

Tata Communications has been the most active operator of submarine cables (Beryl, 2010). Some major companies abroad include Reliance, Bharti Airtel, MTNL, and BSNL. Some of the key players, Tata, Pacnet, Cable & Wireless, and Verizon, are looking at launching new lines within the next three to five years. The submarine cable business is vastly becoming a fast growing business as demand for higher connectivity among nations is on the rise.

Internet service providers buy fiber-optic line space from these companies and sell it to their customers for a monthly fee. Networks that are connected to the submarine cables allow businesses and individuals higher quality accessibility to the entire world and can give them a broader span of advertising and business over the internet. Corporate businesses with foreign subsidiaries have greater and faster communications throughout the entire network. All businesses with business websites have greater quality of services to customers all over the world instead of just in their own country. Businesses can expand to global measures without investing in other countries via the internet and the quality of the submarine cables provide with connectivity.