the establishment of Bermuda’s Submarine Cable Protection Zone is significant. The zone ensures the protection of submarine cables in our waters while also protecting our natural marine environment and heritage. Working together with ESG Survey, an internationally recognised company in this field, a comprehensive report looked at all of the factors required to develop a submarine cable sector. Most notably, Bermuda’s geology, existing and potential landing sites, hazards and restrictions, and cable engineering. The result is a single area which covers two geographically diverse locations on the Island. It incorporates all the existing deep-water submarine cables routes and which is designed to have minimal impact on current and future use of the area, while allowing sufficient scope for the development of the submarine cable sector to the best industry standards.
3.
How does Bermuda participate in the submarine cable market? Bermuda has long been involved with the submarine cable market and so this legislation is really a reflection of our renewed interest and commitment to the industry. Three cable systems currently land in Bermuda, namely GlobeNet, Challenger and Gemini, and industry leading companies, such as Southern Cross Cable Network and Australia-Japan Cable, have head offices based on the island. Bermuda is also home to a range of professional service providers who are highly experienced in submarine cable assets. Historically, we have also been the home for cable installation/maintenance ships and storage of cable, we aim to re-energise this sector. Furthermore, the Regulatory Authority has recently applied to become a member of the International Cable Protection Committee (ICPC).
4.
Is Bermuda currently involved with any new submarine cable projects? There are more than twenty submarine cables that cross the Atlantic from Americas to Europe and Africa, and others that link North and South America, and the Caribbean. Many other transatlantic cables are being built that transit around the island, but do not land here. We want to highlight, to the large technology companies like Google, Microsoft, Amazon, and Facebook who are building these cables, the opportunity to do a branching unit into Bermuda, making the island the first Atlantic Digital Hub. Cable companies are looking for a hub to manage traffic capacity and where that traffic can be conveniently split for different destinations, such as the US, Europe, Latin America and South Africa. They also want a way to manage data sovereignty to avoid sending data through certain locations. Bermuda can provide this.
In addition, for technology companies with global intellectual property companies in Bermuda, a hub would provide further economic substance for them. The island also has the added benefit of being able to provide captive insurance solutions for these companies and be home to head office operations. There are three such hubs in the Pacific Ocean, in Hawaii, Guam and Fiji, but none in the Atlantic. We are hoping to change that.
5.
What is your view on the connectivity market? More than 99 per cent of the world’s global communications is carried on submarine cable networks, and these networks have increased due to the exponential growth of data. As such, submarine cables are a vital component of a country’s national infrastructure and many governments have declared subsea cables strategic national assets. The internet has become ingrained into everyday business tasks and digital transformations are impacting every industry. Bermuda knows well that embracing new technology, allowing existing and new businesses to innovate, is necessary for the future growth of its economy. In support of this, Bermuda is taking a proactive approach and has not only passed the Submarine Communications Cables Act 2020, in 2018 we pioneered a robust regime around digital asset businesses and initial coin offerings in keeping with the Government’s pledge for Bermuda to become a technological hub of the future.
6.
What makes Bermuda unique in the submarine system market? The same fundamental principles that have underpinned Bermuda’s development as a blue-chip jurisdiction for the last 70 years - namely its pro-business environment, gold standard regulatory regime, stability and convenient location. This, combined with the island’s specific experience in the industry and the new legislation that is now in place, makes Bermuda a unique and compelling destination for the submarine system market.
7.
What’s next for Bermuda? In this space specifically, now that we have the legislation in place, our main focus will be on promoting the potential for Bermuda to become an Atlantic digital hub as a place that is business friendly for the submarine cable industry all the while ensuring the market understands Bermuda’s offering. Otherwise, the Bermuda Government continues to focus on the growth of the two key economic drivers, international business and tourism, which have served Bermuda well, while also exploring new and emerging industries from the blue economy to space and satellites. STF MARCH 2020 | ISSUE 111
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