GigNet enters LOI to build cable between US and Mexico
GigNet enters LOI to build subsea cable between USA and Mexico
06 April 2021 | Natalie Bannerman
GigNet, a Mexican Digital Infrastructure company, has entered into a Letter of Intent (LOI) to acquire FB Submarine’s subsea cable system, GigNet-1.
Announced back in February, GigNet-1 is the soon to be built cable system that has been in development for the past two years and is due to go live in 2022. Specifically, GigNet will acquire the assets, operations, and development to date of the new system from FB Submarine.
Over the past three years, a significant amount of research and planning for GigNet-1 which, once live will be the first new subsea cable between the USA and Mexico in almost 20 years. The project comes as the demand for secure broadband capacity for streaming, cloud services, data centres, social media, and other Internet applications and services have grown exponentially.
“When completed, we believe the subsea cable system combined with our existing terrestrial network in the Cancun region will position GigNet as the leading regional provider of secure, high quality Internet capacity between the USA and the Yucatan Peninsula,” said Paul Moore, chairman and CEO of GigNet.
“The operational benefits for our existing and future customers are without question, and we also believe GigNet-1 will be the capacity source of choice for major enterprises and telecommunications providers. The impact of this new source of advanced connectivity to the world on the economic development of the region will be transformational for the states of Quintana Roo and Yucatan.”
To date the project has seen the completion of its desktop study, regulatory and permitting feasibility studies, market demand and analysis studies, as well as the selection and contracting of key suppliers for the system design, equipment, routing, and installation. A marine route survey is currently underway and is expected to be completed within the next 60 to 90 days, depending on weather and other conditions.
As announced back in February, Xtera, a developer of subsea network deployments, will serve as the primary EPC contractor for the project. Specifically, Xtera will provide the subsea “wetplant” comprised of the fibre and amplifiers (repeaters), the submarine line terminals in Florida and Mexico, and will manage the installation.
In addition, GigNet subsidiary GigNet S.A. de C.V. will provide access to the beach in Cancun and colocation in GigNet’s Cancun cable landing station.
Details of transaction were not disclosed and subject to closing conditions is expected to be finalised over the next 30 days.
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