Page 28 - Analysis Report of Global Market in the Submarine Cable Field (2017)

Wire and Cable

The rising of international submarine fiber optic cable’s construc 1. Huge demand for building transoceanic information interaction
tion was mainly originated from the end of 80s to the end of 90s With the development of Internet services and cloud services, there is a
last century. Turning point appeared in 1998, benefiting from the large increase in demand for content providers’ promoting global data
European Communication market’s opening and the year-on- exchanging. Only from 2012 to 2014, the global IP traffic doubled
year increasing Internet penetration stability, for example Iceland, up. Cisco expected that the global data exchanging rate will remain on
Sweden and other countries even went over 30%, large number of the rapid increase of more than 20% in upcoming 5 years. The survey
telecommunicationoperators have been encouraged to rush into data of American Telecommunications Geographic Research Company
the investment of submarine cable’s construction, whicheven reached a revealed that the internet content providers like Google, Facebook
peak in 2001. In the following years, due to the decline of international and Microsoft have for the first time surpassed other users like China
bandwidth priceand excessive competition in the market, as well as the Telecommunication in the using amount of trans Atlantic submarine fiber
appearance a new generation of WDM technology, a large number of the cable bandwidth.
original operators have declared bankruptcy. The construction of national Figure 12 global IP traffic growth chart
submarine cable entered into a calming period.
Figure 9 Global submarine optical fiber cable construction project
investment statistics

The main reason why the American Internet giants are keen to build new
submarine fiber optic cables is to support the high speed development of
Internet services and the explosive growth of data usage brought buy them.
Figure 10 Global submarine fiber optical cable construction project
length statistics Table 2 US Internet giants’ investment in submarine building

At present, the JKC submarine cable project, which entered into
operation in 2002, has already retired.The transoceanic submarine cable’s
retirement and replacement are marching rapidly. In the upcoming few
years, the international submarine cable construction is expected to The international export bandwidth, which is close related to user net
enter into a comprehensive high-speed development period. According surfing experience, was described early in the document of “The 12th
to our statistics, the global submarine construction volume will rapidly Five-Year” National Information Plan that it was expected China’s
increase from 2016, while the global planned total length of the newly c internet export bandwidth reaches 6.5Tbsp, with the average increasing
onstructional submarine cable in 2018 will be almost three times of the rate of 42.7% in 2015, but the actual export width in 2015 was only
length of 2014 and 2015. 3.8Tbps, which is far lower than the planned target. Recently, “The 13th
Figure 11 Global planned newly constructional submarine optical Five-Year” National Information Plan has been released, planning that
fiber cable length the international export bandwidth of China will reach 20Tbps in 2020,
with increase rate over 40%.

At present, there are 8 international submarine cable being in operation
within our country territory, that takes around 70% of the total bandwidth
of China’s export. Under the background that export total bandwidth
is largely improved, the demand for submarine cable’s construction in
China is very huge.

In February 2015, the National Development of Reform
Commission(NDRC) also announced that it had approved a new China-
led international Pacific submarine (NCP) submarine fiber optic cable
project by the end of 2014, which is expected to be put into operation in
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