Chinese International Optical Cable Interconnection
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1 Chinese International Optical Cable Interconnection Li Yanting China Academy of Information and Communications Technology
2 CONTENTS 1 Present of International Optical Cable in China 2 Future Trend in International Optical Cable
3 Submarine Optical Cables Vital for International Communications The earth's geography necessitates submarine optical cables for effective international communications. No land routes between Oceania and the American and Eurasian continents. Only 44 landlocked countries out of nearly 200 countries Over 95% of international traffic is transmitted through submarine cables. The leading role of submarine cables in international communication will not change. Satellite: bandwidth is limited, making it unsuitable for serving many users. Useful for remote islands and landlocked countries. Terrestrial cable: lower construction and maintenance costs, but cross-border deployments have not been successful so far. Page 3
4 Fierce Competition in Global Submarine Cable Market Resources, policies, and geography foster submarine cable centers. US: world's top Internet companies, rich content resources, aggregation of global Internet traffic Hong Kong and Singapore: location advantages, open economies, well-developed service industries Japan, UK New markets are proactively challenging the submarine cable business landscape. Thailand: 5 billion Thai baht to CAT Telecom to develop new paths Finland: promoting Arctic submarine cable construction Chile: planning to reach China's transoceanic submarine cable and directly connect to Asia India: Tata Communications acquired Tyco, and continues to expand its network USA UK, Germany, etc. Japan Hong Kong Singapore Page 4
5 Internet Giants Become New Forces in the Submarine Cable Club Consortium Big Telecoms Club Consortium Internet Giants Club consortium is still the main mode of international submarine cable construction Telecoms Benefit & cost sharing Business sources Members handle their own country's permits Internet giants become an important force Meeting interconnection needs of global Internet data centers Participating in the construction of more than 15 cables. Page 5
6 Strong Collaboration Between Submarine Cables and Data Centers Internet traffic dominates the global submarine network architecture. Traditional services: voice and private line circuits use Kbit/s- or Mbit/s-level bandwidth New services: Internet uses Gbit/s or even Tbit/s-level bandwidth Global traffic flows to Internet content centers in the US and Europe Global data center interconnection affects submarine cable construction. Cloud computing and high granularity boost data centers. Data center interconnection is required for high bandwidth, high granularity, rapid growth, flexibility, and agility. Page 6
7 Cross-border Terrestrial Cables and Submarine Cables in China Cross-border terrestrial cables connect to neighboring countries 12 countries, 17 border crossings 70 TB+ bandwidth Key international submarine cable access countries and regions 4 landing points, 9 landing cables 40 TB+ bandwidth Cables reach North America, Asia, Europe, etc Actively participate in the construction of non-landing submarine cable SMW5,FASTER 7
8 Strengthening International Cooperation and Exploring the Terrestrial Cable Connection Mode Terrestrial cable cooperation improve Internet access of landlocked countries. ITU-T GS3 Study of Tariff, Charging Issues of Settlements Agreement of Trans-multicountry Terrestrial Telecommunication Cables China can play a larger role in: Establishing more information channels to the West. Providing cable connections to countries such as Kazakhstan, Kyrgyzstan and Mongolia. 8
9 Ever-increasing Flow of International Interactions Stimulates Rapid Development of Information Flow Tourism Outbound: 131 million, up 6.9% YoY Inbound: 139 million, up 0.8% YoY Capital China's annual FDI has grown for 15 consecutive years, reaching 196 billion USD, up to 34.7% YoY 37,200 FDI enterprises in 190 countries/areas Products Import: trillion RMB, up to 18.7% YoY Export: trillion RMB, up to 10.8% YoY Source: CTA, 2017 Source: GACC, 2017 Source: MOFCOM, 2016 Growth rates of China's Internet traffic by region (YoY) (38%) Region North America 46% 45% 35% 26% 25% 25% Asia Pacific 47% 39% 47% 34% 44% 38% Europe+ Africa 50% 33% 45% 28% 41% 33% 9
10 Overseas Business Development of Chinese Internet Enterprises Increases Demand for International Bandwidth Internet applications 1 billion users 870 million users (552 million in China) 40+ countries Alibaba Cloud's 18 global data centers Internet infrastructure 10
11 China Academy of Information and Communications Technology A Specialized Think-tank for the Government, and an Innovation and Development Platform for the Industry 11
12 2018THANK YOU Aug. 29, Presentation Title Version 1.0
White Paper on China International Optical Cable Interconnection
White Paper on China International Optical Cable Interconnection (2018) ChinaAcademyofInformationandCommunications Technology (CAICT) August2018 COPYRIGHT STATEMENT The copyright of this white paper is
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