Nokia Sets New Report For Submarine Cable Capability As Demand Jumps
Nokia units new record for submarine cable capacity as demand jumps
FRANKFURT Nokia's Alcatel Submarine Networks (ASN) stated on Wednesday it set a new file for cable transmission capacity for communications site visitors - doubling its earlier levels - as the corporate responds to a choose-up in demand from Web companies.
The highest supplier of undersea cable networks said that with the company's analysis arm, Nokia Bell Labs, it had demonstrated in lab tests a sixty five terabit-per-second transmission using dual-band fiber amplifiers - the equivalent of streaming 10 million high-definition TV channels simultaneously.
The subsea cable enterprise, which makes world Internet links attainable, has lengthy been subject to each massive advances in know-how and dramatic capability gluts, which, in flip, helps drive further demand by slashing network costs, analysts say.
Nokia, which purchased ASN earlier this year as a part of its 15.6 billion-euro ($17.5 billion) acquisition of French telecom tools maker Alcatel, has mentioned it's considering its strategic choices for the business.
UBS predicted on Wednesday it could ultimately be bought.
Market analysis firm Telegeography estimates the market is poised to see an explosion of latest cable deployments worth greater than $8.1 billion over the following three years.
Google, Microsoft and Facebook are now not just prospects however have begun to back cable-building ventures of their very own, joining conventional subsea cable challenge consortia made up of telecom operators or authorities backers.
"The Web gamers are driving demand throughout the Atlantic and Pacific, inside Asia to some extent and between Latin America and the United States," stated Alan Mauldin, research director at Telegeography.
Whereas solely three subsea networks price $490 million had been deployed in 2015, 33 networks are set to be built throughout the next three years, Telegeography predicts.
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One other forecaster, Terabit Consulting, predicts as much as $22.4 billion could be spent in coming years across 155 initiatives, although solely a third of those, worth round $6.three billion, are prone to be built in the next two to 3 years, it says.
IN SEARCH OF A PURCHASER
Alcatel Submarine is the market leader in undersea cable networks with a forty seven percent share of the market within the decade as much as 2014, according to market analysis firm Terabit Consulting.
Nokia does not disclose specific outcomes for ASN, saying only that it loved yr-on-year development in revenue and gross revenue within the newest quarter, partly offset by weak spot in its terrestrial cable enterprise, referred to as Radio Frequency Programs.
Rivals embrace U.S.-primarily based TE SubCom, with 30 p.c and NEC with 12 p.c. Smaller rivals range from Fujitsu with four p.c to Huawei Marine with 2 % to Ericsson, with simply 1 p.c share in 2014.
ASN has been effectively up on the market for years. Potential bidders including European personal fairness funds and the French sovereign wealth fund Fonds Strategique d'Investissement have been eyeing the company in 2013 however no deal was reached.
Alcatel considered a stock market flotation of the submarine unit final yr before it was bought with the remainder of Alcatel to Nokia.
However, due to the delicate role such cables play in international communications, any purchaser must meet stringent nationwide security criteria from Western governments for any deal to be accomplished, complicating the search for consumers.
($1 = zero.8928 euros)
(Reporting by Eric Auchard; Modifying by Edwina Gibbs and Adrian Croft)
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