Tuesday, September 25, 2018

The renewal of the submarine cables business in Latin America comes with price reductions and new demands

This new generation of systems not only has to support increases in capacity demand of more than 50% year-to-year in Latin America, but much of this demand comes from OTTs and other "hyper buyers".

The submarine cable segment is undergoing a period of renovation, with four lines added to the offer for Latin America in the first half of 2018. BRUSA connects Brazil with San Juan de Puerto Rico and Virginia Beach in the United States, an extension of 11,000 kilometers and belongs to Telxius (of Telefónica, the investment fund KKR and Pontegadea, of the Spanish textile entrepreneur Amancio Ortega). The Monet is a venture of Google, Antel Uruguay, the operator Algar Telecom of Brazil and African Angola Cables, and adds a 10,556 km stretch between Brazil and Boca Raton. In third place is the SACS, the first South America-Africa connection, developed by Angola Cables to connect Brazil and Angola. And finally, the Tannat, a 2,000 kilometer stretch from Antel Uruguay and Google from Punta del Este to Fortaleza that then links to the Monet.

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