ANALYTICS
BY KIERAN CLARK
SUBMARINE TELECOMS MARKET SECTOR REPORT: GLOBAL OUTLOOK EDITION
T
o address the growing reporting and analysis needs of the submarine fiber industry, SubTel Forum Analytics continues its Market Sector Report series – designed to provide the industry with the information it needs to make informed business decisions. The Submarine Telecoms Market Sector Reports are an annual subscription product covering a specific sector of the submarine fiber industry and updated on a quarterly basis. The Global Outlook edition provides a global overview of the state of the submarine fiber industry. SubTel Forum Analytics collected and analyzed data derived from a variety of public, commercial and
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SUBMARINE TELECOMS MAGAZINE
scientific sources to best analyze and project market conditions. While every care is taken in preparing this report, these are our best estimates based on information provided and discussed in this industry. The following Executive Summary provides an overview of the topics addressed in the Global Outlook Market Sector Report. Executive Summary Since the last peak in 2017 – when over 90,000 kilometers of cable was installed – the submarine fiber industry has observed a significant decrease in activity. The years 2018 and 2019 observed 64,000 and 28,000 kilometers of cable added, respectively. (Figure 1) Despite continued activity
from Over-The-Top (OTT) providers and regional infrastructure projects, output has returned to pre-2017 levels. Several projects that were expected to be complete by the end of 2019 have either been delayed or fallen through completely. Global economic and political uncertainties have contributed to numerous reorganizations, acquisitions and bankruptcies throughout the industry. As the commercial outlook for the submarine fiber industry becomes less certain, expect this kind of activity to increase as companies work to strategize for potential market downturns. Additionally, the average capacity for new systems has also fallen. Since 2015, the average capacity of