Telstra boosts subsea investment to meet 200Tb capacity demand

16 January 2019 | Jason McGee-Abe

Cover

Telstra has added substantial capacity on the new-generation New Cross Pacific (NCP) cable and made a further investment in the Faster cable.

These capacity investments in subsea cable infrastructure strengthen Telstra’s Japan-US route and reaffirms Telstra’s subsea cable network, which now reaches more than 400,000km today, as the largest in the Asia-Pacific region.

Michael Ebeid, Group Executive of Telstra Enterprise, said Telstra’s investments were part of a long-term strategy to capture data demand across Asia and the Pacific.

“Building on the capacity, resiliency and the footprint of our already vast subsea network is a key part of our international growth strategy,” said Ebeid.

“Following Telstra’s purchase of Pacnet in 2015, we have strategically invested in additional capacity and infrastructure to meet the increasing demand for data right across the Asia-Pacific region, carefully mapping our international paths and investment.”

In December, Telstra also entered into agreed terms to purchase a 25% stake in Southern Cross Cable Network (SCCN). Subject to definitive agreements and regulatory approvals, the agreement includes capacity on the existing Southern Cross network and new Southern Cross NEXT subsea cable - set to become the lowest latency path from Australia to the US.

Telstra has also boosted its Asia to US operations over the last 12 months, with a half fibre pair investment in the Hong Kong Americas (HKA) cable and a 6Tb capacity purchase in the Pacific Light Cable Networks (PLCN) cable, both due to be completed in 2020.

These new-build cables complement Telstra’s major half fibre pair investment in the INDIGO cable system from South East Asia to Australia, which has reached a major milestone with the completion of the 4,600km Indigo West cable lay from Singapore to Perth.

Once completed, Telstra’s investments in SCCN, HKA, PLCN and INDIGO, will grow Telstra’s subsea cable network ownership by more than 25Tb.

“Capacity demand on our international network has almost doubled over the past two years to over 200Tb, driven by the explosion of cloud computing, video streaming and e-commerce,” added Ebeid.

“As the Asia-Pacific’s economy grows, so do we. We have increased our capacity to meet the growing data requirements of our customers now and into the future with our investments in capacity and path diversity throughout Asia-Pacific. Increased connectivity is also about helping Telstra’s domestic, international business, international carrier and Government customers expand globally, particularly throughout Asia-Pacific.”