Li Yanting
Chinese International Optical Cable Interconnection
and Proposal for this Project
China Academy of Information and Communications Technology
CONTENTS
1 Future Trend in International Optical Cable
2 Present of International Optical Cable in China
3 Chinese Proposal for this Project
Submarine Optical Cables Vital for International
Communications
Page 3
⚫ 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.
➢ For central Asia countries, one of the most important issues for improving the international connectivity
is to strengthen the cooperation for cross-border terrestrial cables connection within this subregion.
Fierce Competition in Global Submarine Cable Market
Page 4
⚫ 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.
Singapore
Hong Kong
Japan
Internet Giants Become New Forces in the
Submarine Cable Club Consortium
Page 5
⚫ 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.
Big
TelecomsInternet
Giants
Club
Consortium
Strong Collaboration Between Submarine Cables
and Data Centers
Page 6
⚫ 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.
Cross-border Terrestrial Cables and Submarine
Cables in China
7
⚫ 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。。
Strengthening International Cooperation and
Exploring the Submarine Cable Connection Mode
8
⚫ 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.
⚫ ITU-T GS3➢ Study of Tariff, Charging Issues of
Settlements Agreement of Trans-multi-
country Terrestrial Telecommunication
Cables
⚫ Submarine and terrestrial cable cooperation improve Internet access of landlocked
countries.
Ever-increasing Flow of International Interactions
Stimulates Rapid Development of Information Flow
9
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
Source: CTA, 2017 Source: MOFCOM, 2016
Products➢ Import: 12.46 trillion RMB, up
to 18.7% YoY
➢ Export: 15.33 trillion RMB,
up to 10.8% YoY
Source: GACC, 2017
Region 2012 2013 2014 2015 2016 2017
North America 46% 45% 35% 26% 25% 25%
Asia Pacific 47% 39% 47% 34% 44% 38%
Europe+ Africa 50% 33% 45% 28% 41% 33%
Growth rates of China's Internet traffic by region (YoY) (38%)
Overseas Business Development of Chinese Internet
Enterprises Increases Demand for International Bandwidth
10
Alibaba Cloud's 18 global data centers
40+ countries1 billion users
870 million users
(552 million in China)
Internet applications
Internet infrastructure
Chinese Proposal for the Project
⚫ In principle, China supports the project.
⚫ China would like to share our development experience and best practices
related to this project.
⚫ We suggest that the participating countries should pay much attention on the
practical requirement from the enterprises and end-users for this project.
12
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China Academy of Information and Communications Technology
Presentation Title Version 1.0Aug. 29, 2018
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