Submarine Cable Opportunity and Challenges in the Era of 5G
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1 Submarine Cable Opportunity and Challenges in the Era of 5G Xie Shuhong Professor Senior Engineer Chief Engineer of ZTT Group Director of ZTT Research Institute
2 Contents 01 5G demand drives innovation 02 China's submarine cables industry strategies 03 ZTT submarine cable's development strategies
3 Contents 1. 5G demand drives innovation
4 Demand 1: Growth of traditional telecommunication operators' traffic According to Cisco's forecast, the combined growth rate of global mobile traffic in may reach 57%, and the trend of traffic explosion will continue for a long time. Asia Pacific has the largest share of traffic (39% of global mobile data traffic by 2019). International bandwidth demand decreased slightly but annual growth rate remained above 40%. 1T single wave rate on cross-regional submarine cables can be reached in 10 years.
5 Demand 1: Growth of traditional telecommunication operators' traffic The total number of communication users maintained the same growth trend, Europe and American tended to be stable, and Asia Pacific and Africa contributed major increments. User coverage in developed regions continues to increase, reaching more than 200%. The economic life of the submarine cable is around 17 years. The Pacific submarine cables in service cannot meet the communication and information needs after 5 to 10 years. China mainly focuses on the trans-pacific, East Asia, and Southeast Asia connections, and connect Europe with submarine and land cables together. The Asia-Pacific cable density is currently much lower than the North American-European cable density, while, global traffic is accelerating toward Asia-Pacific, which will promote the growth of the Asia-X submarine cables.
6 Demand 2: Explosion of global internet companies' business traffic Internet Centers are the United States and Europe, and it is predicted that the future IOT/M2M traffic will far exceed the current WEB/OTT. Internet companies such as Google, Amazon, Facebook, Microsoft, Apple, Alibaba, and Tencent have experienced rapid growth in their business traffic. In order to improve their ability to handle big data, they are deploying very large data centers worldwide. Servers among Internet companies transmit large amounts of data to each other. They urgently need to establish their own connections instead of renting third-party submarine cables to complete these data transmissions. At present, the vast majority of projects are invested by U.S. Internet companies. From 2016 to now, there have been at least five projects, nearly 50,000 kilometers submarine cables deployed.
7 Demand 3: Maritime Silk Road drives information development In the 13th Five-Year National informatization plan, it is proposed that the international export bandwidth will reach 20Tbps in 2020, and by the end of 2017, the international export bandwidth is 7.32Tbps. From 2017 to 2020, the international export bandwidth will increase by 173%. The "One Belt and One Road" initiative will promote the development of informatization in coastal countries along the route, and establish the China-ASEAN Information Port, China-Arab countries and other maritime Silk Roads. (1) Provide ocean information infrastructure. (2) Provide channels for ocean information exchange. (3) Provide a transnational "Internet + Ocean" platform.
8 Demand 4: Submarine Observation Network applications The submarine observation network is the third earth science observation platform. Implement large-scale, stereoopic, continuous, long-term, real-time monitoring and in-situ analysis of the oceans, and apply it to ocean scientific research, ocean prediction, ocean resource development, earth environment monitoring and protection, earthquake and tsunami, natural disaster monitoring and early warning, and marine safety, etc. More than a dozen countries such as North America, Western Europe and Japan already have submarine observation networks. It is expected that the related industries such as submarine cables will exceed 10 billion.
9 Contents 2. China's submarine cables industry strategies
10 1. China's submarine cable industry still in stage of development Small domestic demand, hard to support industrial development Insufficient application scenario in the domestic market, hard to support effectively breakthrough of the technological bottlenecks ASN/NEC/TE-Subcom have occupied about 90% market shares, meantime the share of other companies is gradually increasing
11 2. Build China's submarine cable industry ecosystem 1 高强度 低损耗光纤和大长度光单元制造技术 Investors Internet companies Operators Consortium Maintenence agreements Turkey Contractors Contracts
12 3. International perspective to promote industry development The "Ocean Power" strategy must strengthen the construction of the submarine network and create a strong neural center for the communications network, which has become a strategic task for the communications industry. The construction of submarine cable networks and interconnected infrastructure between countries requires the cooperation of all countries. Needs policy support, financial support, and industry support. Strengthen investment policies such as Silk Road Fund and Asian Infrastructure Investment Bank. Goverment Operators China powers Cables Manufacturers Financial
13 Contents 3. ZTT submarine cable's development strategies
14 1. To the development of submarine cable systems Develop around the five ocean systems Continuously improve the advantages of submarine cables Form a "Smart Ocean" industry layout Build EPC capacity in power system projects Respond to the National Ocean Power strategy Five ocean systems ZTT SUBSIDIARIES ON SUBMARINE INDUSTRY
15 2. To build an excellent submarine cable supplier in China China has made great breakthroughs in deepsea repeatered subamrine optical fiber cable technologies and industries represented by ZTT Submarine Cable Actively cooperate with the system iutegrators to go out and build an excellent submarine cable supplier in China In , China's first domestic developed and manufactured deepsea repeatered submarine optical fiber cable was successfully put into operation with repeaters in 5000m sea depth. In 2016, China's first domestic developed and manufactured deepsea non-repeater submarine optical fiber cable was successfully put into operation in 2000m sea depth.
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