An expanding web of submarine fiber-optic cables is spreading across the world's waterways as service providers seek new sources of dark fiber to support growing demand for ultra-broadband services.
The global market for submarine fiber-optic cable is expected to increase at a compound annual growth rate (CAGR) of 5.76% between 2016 and 2020, according to TechNavio.
"Owing to their high-speed capacity, these fiber cables carry an enormous amount of data traffic on a daily basis. Data transfer through submarine optical fiber cables offers several advantages in terms of high reliability, security and capacity and cost-effectiveness," the research firm wrote. "The growth of this market is directly related to the demand for broadband services and the ongoing investments in new projects and increasing investments in upgrade projects."
By 2020, cumulative installations of submarine optical fiber cables will span 2 million kilometers (or 124.3 million miles), with most growth coming from new -- not replacement -- cabling, determined Global Industry Analysts. Many of these green-field deployments will occur in developing nations, the report said. But that does not mean underwater cabling projects are not happening in North America or Europe.
"Demand comes from more people using the Internet, machine-to-machine data, and we're seeing increased mobile penetration, increased usage and the type of data that can be transferred -- especially now we have high-def TV -- really increases the bandwidth demands," said Mike Cunningham, Crosslake Fibre CEO, in an interview with UBB2020.
Under the Lake
Crosslake Fibre, for example, recently unveiled plans to build a new submarine fiber-optic cable from Toronto to Buffalo, NY, a route that will take the cable through Lake Ontario and expand service in both countries, said Cunningham said.
The company, set up specifically for this deployment, focuses on bringing dark fiber to telecom operators and large enterprises via high fiber-count cable, he said. Because its route takes it through Lake Ontario, the cable is shorter than existing, older cable paths and provides lower latency, Cunningham said.
The implementation is a mix of underwater and terrestrial technologies; services are expected to become available in September 2018, according to Crosslake.
"We have built the route really to provide dark fiber. We allow all our customers to light that fiber with their own equipment so this model allows our customers to use existing technology platforms or get the absolutely newest technology and use that when they light their network up," Cunningham said.
Deploying DOCSIS 3.1 across its entire footprint gave Rogers Communications the ability to offer speeds of up to 1 Gbit/s,
contributing to a broadband segement that generated about 60% of the Canadian operator's $3.05 billion (US) in Q4 cable earnings.
On Jan. 23, Broadband World News hosts a Calix-sponsored webinar that explores several ways CSPs can enhance customer experience and find new business opportunities to avoid devolving into a speed race where nobody wins, not even the customer.
As the pool of savvy, fiber-rich operators across the US rural and regional landscape wanes, the financial community will grow even more interested in acquiring or investing in them, a CoBank report says.
It wasn't long ago that TV was ranked by subscribers as the most important service in the bundle provided by their communications service provider (CSP). Recent research indicates that for nearly three quarters of subscribers, broadband is now the most important service. Broadcast TV is the most important service to only 15% of North American consumers, replaced by OTT video streaming platforms like Netflix, Amazon Prime and Disney+. In addition, many different competitors are moving aggressively to stake a claim in consumers' homes.
In 2020, CSPs need to fight back by transforming their business models, which are becoming more reliant on a single source of revenue: fixed broadband services.
This webinar will focus on helping CSPs transform their business models by placing a firm focus on delivering a sensational subscriber experience and by offering compelling new services that generate value for subscribers. These actions will reinforce the CSP's strategic position in the home network and position themselves for growth in the next decade.
Key topics include:
Being the first to market with WiFi 6 technology, in response to consumer purchases of new devices over the holidays;
Having the insights needed to proactively resolve issues, often before your subscribers even know that there are issues;
Providing help desk agents with the visibility they need to resolve common subscriber issues more quickly;
Delivering a mobile app, in response to consumer demands for the ability to do some things themselves, rather than having to call technical support; and
Addressing consumer concerns around device security, privacy and control with enhanced security and parental controls.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.