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Article

Title: Data Networks Underwater Peril

Author: Hamm, Steve; Ante, Spencer E Article Type: Product Analysis
Source: Business Week, n4017 p46(2) Publication Date: Jan 15, 2007
  ISSN: 0007-7135
  Illustrations: Charts
URL of Publication: http://www.businessweek.com

While there is much interest about broadband, WiFi, and mobile communications networks, much of the world's data continues to rely on undersea cables that lay across the ocean floor. These cables are vulnerable to many things, including fishermen's nets, ship anchors, and natural disasters like earthquakes. The risk is highest for cables under the Pacific Ocean, which has the most seismically active environment in the world. Because China is becoming a global manufacturing center, and India is developing into a major software center, the undersea networks take on more importance. Asia is already short of capacity, says Todd Underwood, chief operating officer of Renesys Corp., a Net monitoring firm. Addressing the vulnerabilities of undersea cables is going to be long-term activity that will impact many global firms, he notes. Three operators have major transpacific systems in play, with two scheduled to be finished by the end of 2008, and the third in 2009. Projects such as these come at a cost of between $500 million and $1.5 billion, generally financed by consortia. One of the systems is being built by FLAG Telecom of India. Punit Garg, chief executive of FLAG, says the firm is constructing a global 'infobahn' that will encircle the globe with fiber loops, so that there will be much interconnectivity and resilience.

Special Features: Charts

Companies:
FLAG Telecom Group Ltd Renesys Corp

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