South Korean telecom operator KT has announced that it plans to build a new submarine fiber optic cable to meet the growing demand for cloud services, big data.
ASABA, NIGERIA, February 3, 2024 /EINPresswire.com/ — Earlier, KT signed a memorandum of understanding (MOU) on the “Asia Link for Advanced Performance of High-speed Access (ALPHA) project” with telecom companies in Indonesia, Japan, and other countries. Memorandum of Understanding (MOU)
Under the MOU, KT and its partners plan to develop a fiber-optic cable network connecting Korea, Japan, the Philippines, Indonesia, Malaysia, Singapore, and Vietnam.
Strengths of KT Korea
Korea Telecom, the largest telecommunications company in South Korea, was established on December 10, 1981, under the “publicization” conversion plan to separate the communications division from the Ministry of Communications for the efficient operation of the electrical communications business, to promote national convenience and public welfare.
In the early years of its establishment, KT focused on supplying telephone facilities for mass communication, and by 1993 it had expanded the number of telephone lines from 4.5 million in 1982 to 20 million, thus laying the groundwork for the early completion of informatization.
On May 13, 2020, KT was ranked 981st on the 2020 Forbes Global 2000 list of companies.
On September 23, 2021, KT was ranked 18th on the 2021 Asia’s Top 500 Brands list.
Cloud Services and Big Data Development in Asia
Asia Pacific is now one of the fastest-growing regions for data centers in the world. According to Structure Research, the Asia Pacific hosting market will grow at an expected CAGR of 12.2% from 2018 to 2024. Most of the demand is coming from global cloud service providers, social media platforms, media content and video streaming service providers, e-commerce platforms, and banks.
There are two main distinct data center markets in Asia Pacific – those serving regional demand, such as Hong Kong and Singapore, and those primarily serving domestic demand, such as Tokyo, Shanghai, and Australia. There are also some very interesting secondary markets, such as India and Indonesia, which have high population growth but currently have very low data center capacity.
Currently, in the Asia-Pacific region, Singapore has developed into one of the most mature data center markets in the world and has become the city with the highest data center capacity.
Almost all of the major global hosting and cloud providers have established a presence in Singapore, especially hyperscale/international public cloud service providers as well as large digital media content providers such as AmazonWeb Services (AWS), the Amazon cloud computing service. But all of this has been made possible by Asia’s strong development and volume growth of submarine fiber optic cables.
Submarine Cable Development in Asia
The Asia-Pacific region is a very economically vibrant part of the world and a key area for submarine fiber optic cable construction, with 16 submarine fiber optic cable projects under development as of the end of 2019.4 Completion and connectivity are expected to further strengthen economic ties between the region, enhance communications diversity, and improve the situation of information delays. Currently, there are the Pacific Ocean Fiber Optic Cable System, the PEACE Fiber Optic Cable System, and the Southeast Asia-Japan II Fiber Optic Cable System.
Intra-Asia international bandwidth is snowballing. intra-Asia international bandwidth usage will reach 387Tbps in 2022, and the share of intra-Asia international bandwidth in Asia’s total international bandwidth will rise from 42% to 52% from 2015 to 2022. the share of Asia’s international bandwidth to the U.S. and Canadian regions declines significantly over the same period, and the share of Asia’s international bandwidth to other regions remains stable. Singapore, Japan, and Hong Kong, China are still the largest international bandwidth hubs in Asia, while South Korea, Indonesia, Malaysia, and the Philippines are gradually becoming new hubs with high bandwidth growth.
The international bandwidth of Latin America, the Middle East, Africa, and Oceania is relatively small in volume and has a relatively single data flow direction, mainly connecting the U.S. and Canada regions and Europe, but in recent years, the international bandwidth within these regions has gradually grown and begun to develop a more diversified routing direction. Latin America’s international bandwidth consists almost entirely of international bandwidth in the two directions of Latin America-U.S. and Canada, and intra-Latin America, with the latter’s share gradually increasing in recent years to reach 18% in 2022. The main network routing direction in the Middle East is Europe, and the share of international bandwidth in the intra-Middle East and Middle East-Asia directions has been growing slowly, with shares of 7.4% and 7.3% of the region’s total bandwidth in 2022, respectively. Northern Africa’s international Internet connectivity is almost exclusively routed through European transit; Sub-Saharan Africa, which has benefited from the construction of land-based fiber optic cables across multiple countries and the localization of content, is becoming less reliant on European transit and is experiencing rapid growth in internal international bandwidth. In the main bandwidth direction of Oceania, the proportion of Oceania-US and Canada bandwidth is gradually decreasing, and the proportion of Oceania-Asia and intra-Oceania bandwidth is gradually increasing, reaching 31% and 16% respectively in 2022.
KT and Telin to Build New Asian Submarine Cables
KT currently co-manages seven major submarine fiber optic cables such as Asia-Pacific Cable Network 2 (APCN-2) and Asia-Pacific Gateway (APG).
These cables are critical to meeting the global demand for dedicated international lines and Internet connectivity.
By leveraging its extensive experience in submarine cable technology, KT aims to complete the planning phase of the ALPHA project within this year. This includes working with alliance partners to employ cutting-edge technology and identify the most efficient fiber optic cable routes.
Indonesia’s Telin, South Korea’s KT, and an unnamed Japanese partner have agreed to build a new undersea fiber optic cable system that will connect South Korea, Japan, Malaysia, Singapore, the Philippines, Vietnam, and other countries in the region.
Known as ALPHA (Advanced Performance Optical Cable System for High-Speed Access in Asia), it will have at least eight pairs of fibers, each designed to carry a capacity of 18 bits/s.
The MoU for the ALPHA project was signed by Telin CEO Budi Satria Dharma Purba and KT SVP Joon Myung. The two companies said they hope to finalize the project plan this year, such as determining the best route for next-generation technologies and systems.
ALPHA Fiber Optic Cable System to be Operational in Q1 2027
President Myung said, “KT’s ALPHA fiber optic cable construction is an important springboard to quickly meet the rapidly growing demand for cloud, big data, and artificial intelligence traffic from enterprise customers in the fast-growing Asian region.” He added that the company will also continue to expand its presence in the Asian submarine cable market “by strengthening partnerships with like-minded global companies.”
Both KT and Telin cite the explosive growth of Internet traffic across the region as a major driver for the construction of new intra-Asian cables connecting East and Southeast Asia, with the largest traffic currently concentrated in the Asia-Pacific region.
Citing 451 Research, the companies said data center capacity in Malaysia, Indonesia, and India is expected to grow at a compound annual growth rate of 10-25 percent over the next five years. These countries share several strengths, including growing online presence, locally customized content, and young demographics.
Telin hopes to make Indonesia the center of intra-Asian connectivity through its partnership with Korea Telecom on the ALPHA cable system.
Telin said, “This submarine cable program demonstrates our commitment to advancing digital connectivity in Indonesia. Our focus on providing ultra-low latency, unique routing, and direct data center-to-data center access marks an important step in shaping the future of digital connectivity in the region.”
The ALPHA cable system is Telin’s latest move to add Indonesia to its global submarine cable footprint. In September last year, Telin announced an ambitious project, Indonesia Cable Express, with plans to build seven integrated fiber optic cable systems, the first of which will connect Malaysia, Singapore, and Batam.
Purba said, “With this ALPHA partnership, we will be able to fast-track the launch of seven new submarine systems, making Indonesian waters the center of submarine systems.”
At the heart of Telin’s global expansion is its vast network of submarine fiber optic cables spanning 250,140 kilometers connecting Indonesia to the world.
Telin, a subsidiary of Telekomunikasi Indonesia, is an active member of several submarine fiber optic cable alliances, including the Thailand-Indonesia-Singapore (TIS), Batam-Singapore (BSCS) routes, Duma-Malacca (DMCS), Asia-America Gateway (AAG), Southeast Asia-Japan (SJC), Southeast Asia-Middle East-Western Europe 5 (SEA-ME-WE 5). Southeast Asia-US (SEA-US) and Indonesia Global Gateway (IGG).
These routes connect Indonesia’s major cities with key destinations in Asia, Europe, and the United States. In particular, IGG provides fast connections between SEA-ME-WE 5 and SEA-US fiber optic cable systems.
In addition, the company operates and holds access to a total of 134,040 kilometers of fiber optic infrastructure through long-term telecom lease agreements with global submarine cable operators and consortia.
In 2020, Telin and the Southeast Asia-Japan Cable 2 (SJC2) consortium began deploying 10,500 kilometers of submarine fiber optic cable from Singapore to Japan, with additional branches connecting to South Korea, Taiwan, Hong Kong, and the southern tip of Thailand.
Submarine fiber optic cable is an important communication infrastructure to support communication and trade among countries. It is the cornerstone, base, and carrier for each country to participate in global economic and social activities in the era of the digital economy, carrying about 99% of the world’s intercontinental communication data traffic. It is the main artery of international communication, and it is the basic condition for expanding the influence of the digital economy, digital culture, and public products.
Global Submarine Cable Development
Submarine fiber optic cable is an important communication infrastructure to support communication and trade between countries, is the cornerstone, base, and carrier of each country’s participation in global economic and social activities in the era of the digital economy, carries about 99% of the world’s intercontinental communication data traffic, is the main artery of international communication, and is the basic condition for expanding the influence of the digital economy, digital culture, and public products.
Along with the new round of scientific and technological revolution and industrial change continues to promote the digital economy is booming, the rapid advance of the digital process, and digital applications promote the rise in demand for data centers, data centers continue to build boom, the global submarine cable construction scale of high-speed growth. At the same time, the development of marine oil and gas resources, and submarine observation network construction for the submarine cable to open up new application scenarios.
ZMS believes that in the future, with the fluctuation of the global economy, the continuous upgrading of submarine cable technology and cross-border data flow rules.
ZMS believes that in the future, with global economic fluctuations, continuous upgrading of submarine cable technology and changes in cross-border data flow rules and other factors will not affect the global submarine cable construction process, the global digitalization development continues to advance, and the demand for intra- and inter-regional interconnectivity continues to increase, the submarine cable industry will continue to maintain rapid development.
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