Subsea Cables & Internet Infrastructure

NTT and Mitsui Leasing have teamed up together with fibre optic cable manufacturer Sumitomo Corporation to fund a 16 fibre pair subsea cable costing $500 million. Design capacity is 320 Tbps. This is the second project on which NTT Data and Mitsui Leasing have cooperated. The high capacity 20 fibre pair Juno cable was the first project. It is unusual to see a large incumbent player like NTT undertaking a subsea cable project with a non-telecom company as co-owner. But the advantages are clear. Mitsui will contribute cash, but not play a major role in design, vendor selection or wholesale commercials. So it not only reduces NTT's risk by sharing funding requirements, but it gives NTT a free hand in decision making. One lesson that has become perfectly clear is that large carrier consortiums increase the likelihood of deployment delays and lengthen the entire planning cycle because decisions require consensus. Moreover, the consensus requirement makes it difficult for new approaches...

Juno is the Queen of the Olympian gods in Roman Mythology. This 20 fibre pair cable has design capacity of 320 Tbps, which makes it the highest capacity subsea network to connect the US to Asia. It lands at Grover Beach, California, and also has Japanese landings at Shima and Minami-Boso. NTT is the project's main backer and owner. The carrier clearly felt that two Japanese branches along with three cable landing stations (Softbank Maruyama, NTT Shima, and NTT Minami-Boso) would significantly improve resiliency given Japan's reputation for earthquakes and other natural disasters such as tsunamis. As is usual for a NTT project, it created a standalone company known as SerenJuno in which it has majority ownership to minimize risk. This way any misfortunes would not result in the parent company having financial liabilities. NTT is also extremely reserved about revealing capacity owners on the system. I have learned that PCCW is on the system. Details Ownership: NTT and Mitsui. Cap...