<strong data-start="0" data-end="120">-Convergencialatina: Padtec recently acquired LEV Brasil. What asset did you find there that was of interest to you?

-Carlos Raimar Schoeninger (CRS): It was not a traditional acquisition. It was a capitalization of the company, and as a result we ended up with an 85% stake in the company. LEV brings us expertise in applied geoscience services, marine engineering and environmental licensing. In the submarine cable value chain, Padtec already has experience defining projects, including determining the number of fibers needed, the channels and bands to be used, future upgrades, land stations, whether data centers will be involved and the type of electronics.

LEV has expertise in surveying the seabed, which determines where a submarine cable can be routed. It also coordinates the acquisition of licenses and permits to operate a cable, including planning, environmental licensing, geotechnical and geophysical studies, coastal and submarine engineering, construction supervision, installation, monitoring and protection of cables and ducts in marine and coastal environments. In Brazil, a total of 15 licenses are required to deploy a submarine cable, and some can take up to two years. It is a complex undertaking.

LEV brings us all this expertise in geology, environmental matters and certifications, as well as the ability to manage all the information we used to outsource to third parties. We have now integrated LEV’s activities into Padtec Marine Networks.

-Convergencialatina: What is Brazil’s submarine and river infrastructure market like in particular? We recently saw that the Brazilian government is studying the construction of Infovias 5 and 6 in the Amazon.

-CRS: Padtec began its submarine activity with links for the Brazilian Army in Manaus, in the Amazon rainforest. We carried out the first tests and helped with the development. Brazil’s first subfluvial cables were built by the armed forces and later became part of a government program, Amazonia Conectada. There are now several state-owned companies tasked with carrying out work on some of those sections. We are studying this and have submitted proposals to maintain those infovias.

Currently, all of Brazil’s infovias have Padtec transponders. Padtec Marine Networks could also operate on rivers. We do not have any projects yet. We have submitted proposals, but nothing concrete. We are rethinking how to operate infovias on rivers because they have many failures. We are proposing a different approach, with greater predictive maintenance, because rivers are very fast-flowing and very turbulent in some regions, and if there is no predictive work beforehand, you will lose the fiber. I have no doubt about that.

We are also conducting studies in this area, and Padtec Marine Networks will be the company responsible for the engineering studies. We are studying lake crossings in other countries. We have several projects in the pipeline.

And with new terrestrial networks, there is the same vision: to have reliable, mission-critical infrastructure, just as when you deploy a submarine cable, you should carry out geological and other preliminary studies. In other words, the same technical approach also applies to terrestrial networks.

Deployments are not only for telecommunications; they are also used for oil and gas pipelines, power cables and offshore infrastructure. All of that is part of the package offered by Padtec Marine Networks.

-Convergencialatina: Did you develop the Junior cable with Google?

-CRS: Yes, it was the first cable for both Google and Padtec, in 2018, between Rio de Janeiro and São Paulo. It was developed jointly. Google learned, and we learned as well, because the best experts came in to fine-tune the project. Its performance has been excellent throughout these years.

-Convergencialatina: Brazil has become a hub for submarine cables. How are you involved in these developments?

-CRS: With Padtec Marine Networks, we are returning to the submarine networks business, and this has been driven by customer demand. Today, we have a project pipeline worth several hundred million dollars under analysis. Turning a project into reality takes a long time, and these are also very expensive projects, but we are now at a point of critical mass, with many projects close to closing this year. We have much more demand than we can handle.

-Convergencialatina: Padtec builds neutral networks. How do you address those requirements without creating distrust with the other side?

-CRS: It is an issue we deal with in the real world. For example, we have a neutral network operated by Silica Networks that runs from Brazil to Argentina and is 100% equipped with Padtec equipment. Perhaps at the beginning of our company, using Padtec equipment was a matter of financing. Now that is a much greater value because we are neutral from a geopolitical standpoint and can deploy networks to carry traffic for Chinese, American and European companies.

V.tal also uses a lot of Padtec equipment; perhaps more than two-thirds of its backbone is Padtec. V.tal was originally owned by Globinet, which operated here before Padtec, yet they have our equipment.

Some of our customers have one network to carry traffic for services from Chinese companies and another for services from U.S. companies. And Padtec can build both. We have a position here that I hope will bring many more results in the long term.

-Convergencialatina: Geopolitics is complicating business…

-CRS: It is impressive. Networks have to be duplicated to provide service to one side or the other of the geopolitical divide. We are interested in doing business by building well-designed, reliable networks.

We do not intend to build transoceanic, intercontinental submarine cables. We are targeting shallow-water and medium-depth projects, where we can obtain equipment at this time. We are also looking at river projects across the rest of the Amazon basin.

-Convergencialatina: Submarine cable projects have multiplied. Are there bottlenecks in meeting demand?

-CRS: I have worked in operations since the 2000s, and I have never seen this before — the number of projects and simultaneous deployments. And if there are not more projects, it is because there are not enough suppliers; there is no way to build the ships, the fiber or find the people. Brazil has a lost generation. The engineers are either very old or very young; there is a 40-year gap.

-Convergencialatina: In addition to Brazil, you have a presence in Argentina, Peru, Chile, Colombia, Mexico and the United States. Which markets are the most dynamic?

-CRS: We are very happy with what we are seeing in terms of growth outside Brazil, with Latin America growing very quickly. Venezuela is moving forward very quickly, as are Colombia and Central America. In Mexico, we resumed operations a little over six months ago.

-Convergencialatina: What about the supply chain?

-CRS: We are in a very challenging supply chain situation, comparable to what we saw during the pandemic, and there are no prospects for a solution. It is a major challenge. Because we are more agile and have our engineering and manufacturing facilities here, we have the ability to make more adjustments to equipment and suppliers.