- Undersea cables are owned by telecom companies, tech giants, and international consortiums, ensuring global connectivity.
- The ownership of undersea cables has significant economic and political implications, affecting global data flow and national security.
Undersea cables are the unsung heroes of global communication. These vital infrastructure elements stretch across oceans, enabling high-speed internet, phone calls, and data exchanges that connect the world. In a world heavily reliant on digital connectivity, the ownership of undersea cables plays a significant role in determining how information flows across borders. Understanding who owns these cables is crucial for grasping the future of the internet and global data exchange.
Also read: What are subsea cables?
What are undersea cables?
Undersea cables, or submarine cables, are a network of fibre-optic cables laid on the ocean floor. These cables carry an overwhelming majority of global internet traffic, voice communications, and other data, making them essential to modern life. The cables are constructed to withstand harsh undersea conditions and provide high-speed, long-distance data transmission. They range in size, with some spanning over thousands of kilometres and connecting continents.
Undersea cables offer a more reliable and faster means of communication compared to satellites. They are also far less susceptible to weather-related disruptions, making them the primary method for international communications.
Who owns undersea cables?
Undersea cable ownership is not a simple, centralised structure. A wide range of entities, including private companies, telecom operators, technology giants, and even consortiums of various stakeholders, hold stakes in undersea cables. Ownership can vary from a single company operating the cable to international partnerships spanning multiple industries.
Telecommunications companies
Large telecommunications providers own significant portions of undersea cables, which they use to connect international data hubs. These companies often build, operate, and maintain their own undersea cables to ensure fast, secure, and cost-effective data transfer. Prominent telecom giants like AT&T, Verizon, Deutsche Telekom, and China Telecom own and manage many major undersea cables.
Telecom companies are also involved in international collaborations to expand global coverage. For example, the “SEA-ME-WE” cable consortium (Southeast Asia–Middle East–Western Europe) involves various international telecom companies, with each member sharing the responsibilities of laying and maintaining the cables.
Tech giants
In recent years, the world’s biggest tech companies, such as Google, Facebook, Amazon, and Microsoft, have increasingly invested in undersea cables. As these companies rely heavily on the rapid transmission of data for their global services, owning undersea cables provides them with greater control over their infrastructure and reduces dependence on third-party providers.
Google, for example, has a significant interest in undersea cables. Their “Grace Hopper” cable, which connects the US to the UK, was launched in 2022. These investments enable tech companies to ensure that their services, from cloud computing to video streaming, are delivered at high speeds with minimal downtime.
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International consortiums
Most undersea cables are owned and managed by consortiums, which are partnerships between multiple companies, including telecom providers, internet service providers, technology firms, and governments. These consortiums are formed to share the immense costs involved in constructing and maintaining undersea cables.
For example, the “Africa-1” undersea cable, which connects countries in the Middle East and East Africa, is owned by a group of operators and technology firms, including Telecom Egypt and du. These consortiums ensure that the global communications network remains interconnected and resilient by pooling resources for large-scale projects.
Government-owned or supported cables
In some cases, governments also play a role in owning or funding undersea cables. This is particularly the case for cables that link to strategically important regions or have national security implications. For instance, some national governments fund cables to secure their domestic digital infrastructure and ensure a reliable connection to other nations.
In many cases, governments collaborate with private companies to achieve mutual goals. For example, several African governments have partnered with international telecom firms to improve internet access by building new undersea cables.
How do undersea cables impact global connectivity?
Undersea cables are central to global communication and the functioning of the modern economy. They provide the infrastructure that supports internet browsing, online banking, e-commerce, social media, and more. Data transmission speeds across these cables are measured in terabits per second, with some of the largest cables able to carry up to 200 terabits per second.
Without undersea cables, much of the world’s internet traffic would be severely delayed or non-existent. Satellite connections, while useful in remote regions, are not capable of handling the enormous data volume that undersea cables manage with ease. Furthermore, fibre-optic cables provide lower latency, meaning data can travel more quickly with fewer delays, which is crucial for real-time services like video conferencing and gaming.
Also read: Undersea cables cut: Baltic tensions resurface
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The economic and political importance of undersea cables
The importance of undersea cables extends beyond technology; it has significant economic and political consequences. Countries and companies that control major undersea cable routes can exert considerable influence over global communications. For instance, owning cables that connect large economic regions gives a country or company leverage in trade negotiations or diplomatic relations.
The location of undersea cables can also impact geopolitical interests. Nations may build cables that bypass certain regions for security reasons, or they may intentionally route cables through friendly countries. The cables that connect key data centres and cloud infrastructure hubs make the nations where they land highly important to global data exchanges.
Also read: Undersea cables and global tensions: A geopolitical tug-of-war
Regulation of undersea cable
Undersea cable operations are subject to regulation by international organisations. The International Telecommunication Union (ITU) and the International Maritime Organization (IMO) oversee technical and safety standards, ensuring that cables are laid without causing harm to the environment and complying with international treaties.
Ownership and access to undersea cables are typically governed by commercial agreements between stakeholders, with few overarching regulations restricting who can own or operate them. Governments may intervene if national security concerns arise, particularly with cables that transmit sensitive information. For instance, countries might restrict foreign ownership of undersea cables that connect to critical infrastructure.
Future of undersea cable ownership
The ownership landscape of undersea cables is evolving. As the demand for data increases with the rise of technologies like 5G, the Internet of Things (IoT), and artificial intelligence, new investments in undersea cable infrastructure are expected. Governments, telecom firms, and tech giants are likely to continue to increase their investment in these cables, potentially forming new consortiums and expanding global reach.
Private companies may also face increased scrutiny in the future, especially regarding national security concerns. As the world becomes more digitally connected, the implications of who controls these cables will become more significant, particularly as issues around data privacy and security grow.