Arctic providing platform for global connectivity
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1 Arctic providing platform for global connectivity Why Arctic issues matter Jukka-Pekka Joensuu Executive advisor Cinia
2 What is the next phase of the global connectivity and requirements for the development 1. There is a huge transformation from operator lead network and connectivity into cloud based connectivity and DC-to-DC business within DC players, operators and cloud providers 2. Growth and importance of Asia is playing already today a vital role and connectivity between North America, Europe and Asia will be a bottleneck in coming years 3. IoT and industry sectors moving into industrial internet will be major driver for growth and cybersecurity, trust and moving business processes online will be a real game changer 4. Transformation from has been enormous but most analysts are predicting that the years will provide even more change and challenges to existing regime
3 Major existing and coming cable developments from the European perspective in the last few years 1. Marea, providingconnectivitybetweenus and southerneurope 2. EllalinkconnectingBrazil and Portugal 3. C-Lion1, providingconnectivitybetweenthe Nordicsand continental Europe 4. Aqua Comms providing connectivity between western partof Europe / Irelandand US 5. Ireland France cable system connecting Ireland with continental Europe 6. Havfrue connecting US with landings in Ireland and Nordics 7. Se-Me-We 5 connecting Asia- Middle Eastsouthern Europe 8. How canweensurethe #PTC18
4 Linking Europe, Asia and Eurasia in north will foster future growth and help sustainable development in the Arctic region The focus of building high speed submarine cables has been between US and Asia and between US and Europe, but the increasing data flow between Europe and Asia requires improved more direct connectivity. Data cable systems are new trading routes in digital economy. > 200% the expected growth of direct traffic flow between Europe and Asia in the next 5 years The new northern connection between Europe and Asia would bring 25-40% decrease in latency compared to mostly used traditional southern route (e.g. Frankfurt-Beijing ~165ms vs. ~240ms) Source: PwC analysis 4
5 ARCTIC CONNECT Key ingredients of global connectivity Connecting 3 continents Eurasia and Arctic projects provide an additionally sustainablebusiness case 85 % of the globalpopulation in the reachof The cable system Additional connectivity through Nordics towards Asia And North America ( botheast coastand westcoast) promotes global companies and global businesses Nordic DC platformsin Norway, Sweden, Finland and Denmark with technology, green energy and solid Infrastructure can enable future development in areas suchas autonomous driving, cryptocurrenciesand Financial technology, banking, travel and other #PTC18
6 TERRESTRIAL A-end B-end Distance Hanko Helsinki 130 km Hanko Barents km Helsinki Barents km ARCTIC CONNECT / Technical feasibility and data sovereignty key issues for success Alaska SUBMARINE A-end B-end Distance Barents 1 Alaska 6100 km Alaska Japan 6300 km Barents 1 Japan km Barents 1 China km Barents 2 Russia km Japan China 2100 km China Russia 2100 km BU WEST BU EAST 1 Hanko km Barents 1 Japan BU BERING 130 km Helsinki km Barents 2 Russia BU EAST 2 #PTC18
7 Pursuing for growth and sustainable business models key issues for future cable developments 1. Arctic areas can be game changer for global connectivity and therefore infrastructure investments and growth plans should be planned and developed with both private and public interests 2. Datacenters and cloud providers are an important part of the ecosystem together with operators but needs of different industry segments play a vital role in planning the system and its lifecycle development 3. How a melting Arctic changes everything, in Bloomberg recent article about the Arctic there are 900 planned projects in the region requiring 1 trillion USD investments; need for infrastructure in the area is eminent 4. Building Data Centers in areas with renewable energy and climate is also a sustainability issue providing growth potential with less environmental impact than in some other
8 Thank you Jukka-Pekka Joensuu Executive Jukka-Pekka Advisor Joensuu Executive Advisor
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