The diversification of subsea cable systems and landing stations has become a critical focus for the telecoms industry, spurred by hyperscale demand and geopolitical uncertainties in the Asia-Pacific region.

At the ITW Asia 2024 panel, experts and industry leaders discussed how these factors are reshaping global connectivity strategies, particularly within the intra-Asia and trans-Pacific corridors. From rising hubs like Indonesia to the evolving role of hyperscalers, the discussion highlighted challenges, innovations, and future trends in subsea infrastructure.

• Todd Rahimi, Founder & director, Lambda Consulting (moderator)
• Kelvan Firman, Founder & CEO - Super Sistem Group
• Nick Barton, CCO - AquaComms
• Vish Vishwanathan, acting head of global wholesale & strategic carrier – Telstra International
• Budi Satria Dharma Purba, CEO - Telin
• Byron Clatterbuck, CEO - Cross Pacific Data Network

Historically, Southeast Asia’s subsea cable networks were concentrated around major hubs like Singapore, Hong Kong, and Japan. These locations provided economic efficiency, favourable geographies, and established connectivity routes.

As Byron Clutterbuck, CEO of Cross Pacific Data Network, explained, early on in the panel: early networks were designed to avoid the complexities of areas like the South China Sea, routing traffic through well-established superhighways between Japan and the United States.

However, rising geopolitical tensions and demand for resilient connectivity have shifted the focus toward alternative hubs and routes. “Geopolitical issues in the South China Sea are driving telecom companies and developers to explore new paths,” noted Todd Rahimi, Founder of Lambda Consulting and moderator of the panel.

These alternative routes, while often more expensive, are vital in maintaining network reliability and meeting the needs of today’s super users, such as hyperscalers and OTT providers, who require robust high-capacity networks.

Indonesia is emerging as a pivotal player in subsea cable infrastructure. The country’s geographic position, coupled with improvements in regulatory processes, makes it an attractive alternative to traditional hubs.

Budi Satria Dharma Purba, CEO of Telin, highlighted Indonesia’s strategic advantages: “With cables like our Indonesia Cable Express (ICE) system, we’re creating unique routes with reduced latency and diverse landing points, ensuring resilience.”

The ICE system’s innovative design leverages deep waters to lower deployment costs and latency—offering up to 40 milliseconds of improvement on certain routes.

Additionally, regulatory enhancements have streamlined cable repair processes, with permits for SEA-ME-WE-5 repairs now issued within three weeks. These factors make Indonesia an increasingly competitive hub, particularly for routes bypassing the congested Malacca Strait.

Kelvan Firman, Founder and CEO of Super Sistem Group, elaborated on Indonesia’s role from a private developer’s perspective. His company’s flagship BTI subsea cable system aims to transform Indonesia’s connectivity landscape.

“Our BTI project—spanning over 4,700 kilometres and connecting key landing stations like Batam, Jakarta, and Manado—is a testament to Indonesia’s potential as a global connectivity hub,” Firman shared. Super Sistem Group’s focus on execution and operational excellence has fostered investor confidence, he added.

He noted that the company's strategy includes acquiring a dedicated cable ship for repairs within Indonesian waters, addressing challenges such as cabotage laws and permitting delays.

Hyperscalers like Google and Meta are fundamentally reshaping subsea cable deployment in Asia-Pacific. As these 'super users' dominate capacity consumption and increasingly invest directly in subsea systems, traditional telcos and private developers must adapt.

Budi Purba emphasised the importance of partnerships in this area: “Whether working with hyperscalers or other carriers, our goal is to create value through unique routes, lower latency, and cost-effective design.

"By bringing multiple parties into consortia, we can reduce unit costs and achieve scale economies.”

Super Sistem Group’s approach differs slightly, as Firman outlined: “While partnerships are valuable, we’re not waiting for demand to materialise. "Our investors are confident in our plans, allowing us to move forward independently. This enables faster delivery and greater control over operations and maintenance.”

Financing subsea cable projects remains a significant hurdle, particularly for independent developers. As Firman noted, the journey to secure funding and execute projects requires a sharp focus on delivery timelines and operational reliability. For instance, Super Sistem Group’s BTI system promises readiness within 24 months, a competitive timeline compared to other projects in the region.

Another challenge is balancing the cost of route diversity with customer demand. Clutterbuck highlighted this tension: “Customers want diversity but often hesitate to pay for it. Building diverse routes is inherently more expensive, yet it’s critical for resilience.”

Telstra’s acting head of global wholesale, Vish Vishwanathan, added that investment decisions are guided by demand patterns and ROI considerations. “We’re seeing increasing demand for connectivity beyond Singapore and Japan, particularly from Australia to the US and Asia to Europe.

"These trends inform our strategic investments, including partnerships in underdeveloped markets like the Pacific Islands.”

The discussion also touched on emerging technologies and strategies for subsea cable development. Nick Barton, CCO of Aqua Comms, discussed the company’s expansion beyond the Atlantic with investments in systems like 2Africa Pearls, which extends to Mumbai and connects India to Singapore and the US.

“Our strategy is to collaborate with regional players, leveraging their expertise while expanding global pathways,” Barton said. Meanwhile, Clutterbuck outlined plans to split the Pacific Light Communications Network (PLCN) into two segments to address US licensing challenges.

This reconfiguration would offer mid-Pacific diversity, creating new opportunities for connectivity. As hyperscale demand and geopolitical dynamics reshape subsea cable networks, diversification and innovation are paramount.

Indonesia’s rise as a connectivity hub, the increasing role of hyperscalers, and new approaches to funding and collaboration signal a transformative era for the industry.

The panellists agreed that while challenges like cost, regulatory hurdles, and execution persist, the opportunities for growth and resilience are immense. As Rahimi concluded, “The future of subsea connectivity lies in our ability to balance innovation with practical execution, ensuring reliable and scalable networks for a rapidly digitising world.”