Subsea Cables & Internet Infrastructure

These two Subco-owned cable systems have experienced ongoing outages that started August 8th. Each has a shunt fault located very near the other in the Perth cable protection zone. This zone extends from shore to a depth of 2000 meters and is over 100 kilometers long. These protection zones can backfire because their width is usually just a nautical mile. So the cables are packed together like sardines and if a ship drags its anchor, then multiple outages are pretty much guaranteed. It raises the question of whether cable protection zones are really a good idea since the level of shipping pretty guarantees cable damage. In a way, cable protection zones violate the principle of resiliency via physical diversity. The most likely suspect in this case is a ship that dragged its anchor across the two cables and damaged the sheath protecting the power conductor from water. A ship has been identified that was in the area at the time the outages began. Cable repairs are slated to be complete A...

More details on the 16 fibre pair SMAP cable that will connect key Australian cities including Perth, Adelaide, Melbourne, and Sydney. Australia has traditionally been cursed by very high subsea capacity pricing. Right now there is a burst of construction on both land and at sea including Subco's SMAP, a new Google cable linking the continent to the US, Telstra's new 14,000 kilometer backbone, the publicly owned national backbone known as NBN, etc. SMAP is a 400 Tbps system. It is possible that it will be cheaper for ISPs to connect Australian cities by taking 100G or 400G waves on SMAP as opposed to terrestrial capacity or SMAP will be a protect path for terrestrial routes.  We are seeing a host of subsea cables that connect major cities in a single country. Other examples include the Confluence-1 network linking East Coast American cities and the Unitirreno project doing the same for Italy. It is an open question whether these cables will attract sufficient demand to be succe...

BW Group purchased the Hawaiki cable in July, 2021 from the Hawaiki Submarine Cable Limited Partnership. The Partnership's original plan was to build a sister cable known as Hawaiki Nui (Great Hawaiki). BW, a Singapore company, has pursued this idea and finally signed earlier this year a Memorandum Of Understanding with TELIN, the international cable subsidiary of the Indonesian PTT. The MOU is really the partnership or consortium agreement and typically only happens once funding has been secured and all parties are fully onboard. The fact that Hawaiki Nui cable was announced in 2021 and just achieved the critical MOU milestone tells me that it has been very difficult to get this project off the ground. My speculation is that the cable's estimated cost is very high because it requires deep burial in the shallow waters of Indonesia; moreover, a very thorough and expensive marine survey is also necessary. Another challenge is that the cable's route requires Indonesi...