Submarine cable operators can implement a range of strategies to address the increased global demand for reliable data infrastructure, according to Stephen Burton, analyst at Analysys Mason.
Key strategies include:
- Expand and Modernize Cable Infrastructure
With the growth in data traffic, submarine cable operators should focus on expanding infrastructure to meet demand and modernizing older cables nearing the end of their 25-year lifespan. This is especially crucial in regions with high data rates, such as Western Europe, where new deployments can enhance connectivity and resilience. The replacement of aging cables with advanced technology will ensure uninterrupted service as older systems are decommissioned.
Ericsson’s 2024 Mobility Report said mobile data traffic is expected to grow at a compound annual growth rate of 20 percent through 2029.
- Form Partnerships with Hyperscalers
Hyperscalers are increasingly investing in submarine cables to control their data delivery capabilities, offering operators a chance to collaborate on high-capacity projects. By working with hyperscalers like Google, Amazon, and Microsoft, operators can secure significant funding and ensure capacity for future growth in data-intensive services, including cloud computing, streaming, and artificial intelligence applications.
The size of the hyperscale cloud market is projected to grow to $2,185 billion by 2030 from $172 billion in 2022, representing CAGR of 37.8 percent.
- Focus on Emerging Markets and Underserved Regions
Connecting underserved areas, such as parts of Sub-Saharan Africa, the Middle East, and emerging Asia-Pacific regions, can open new revenue streams and contribute to global digital equity. These areas present growing data demands and offer lucrative potential for operators that can establish reliable routes. The 2Africa cable, for instance, is a key example of a project designed to bring connectivity to underserved regions, benefiting both operators and the end-users in these regions.
- Increase Cable Resilience through Redundant Routes
Operators can enhance network resilience by deploying cables along diverse paths and avoiding heavily trafficked or vulnerable routes. Additional redundancy not only secures data traffic from disruption due to physical damage or geopolitical instability but also enhances service reliability for businesses and hyperscalers reliant on consistent connectivity.
- Leverage AI and Advanced Analytics for Predictive Maintenance
Predictive maintenance technologies, supported by AI and machine learning, can help submarine cable operators reduce downtime and operational costs. By monitoring and analyzing environmental and usage data, operators can proactively address potential faults or degradation in cables, extending their lifespan and maintaining uninterrupted service.
- Enhance Capacity through Upgrades
Upgrading existing cables with advanced technologies like Ciena’s or NEC’s fiber-optic amplifiers can increase data throughput without the need for new deployments. Such upgrades allow operators to boost their capacity, supporting increased data traffic demands in regions such as Western Europe and North America, where there is continuous growth in internet use and streaming services.
- Invest in Sustainable and Energy-Efficient Technology
Sustainability in submarine cable operations can reduce environmental impact and attract partners committed to eco-friendly operations. Operators should explore energy-efficient power supplies, advanced materials, and optimized deployment practices. Sustainable practices not only improve public perception but can also yield cost savings over the long term.
- Develop and Deploy New Cable Landing Points in Strategic Locations
To enhance accessibility and expand global reach, operators can establish new landing points in strategic locations. By doing so, they can improve local and regional connectivity options, particularly in high-demand areas. Western Europe’s role as a gateway to other regions, such as MENA and Sub-Saharan Africa, highlights the importance of strategically positioned landing points to maximize traffic routing options.
- Diversify Revenue Streams through Data Center Integration
Integrating with data centers or establishing points of presence (PoPs) near landing sites can create additional revenue opportunities. Submarine cable operators can tap into the colocation market, partnering with or hosting data centers that can benefit from low-latency connectivity.
- Monitor Regulatory Changes and Comply with Regional Requirements
As regulations around data sovereignty and international data flow continue to evolve, submarine cable operators must stay informed about changes in regional policies. Compliance with local regulations can prevent operational disruptions, support smoother cross-border partnerships, and improve service reliability in diverse markets.
Analysys Mason in its report said these strategies position submarine cable operators to meet the demands of a rapidly growing digital ecosystem, capitalize on new revenue opportunities, and support global connectivity.