FEATURE FROM FEASIBILITY TO FIBER How the Humboldt Cable is Redefining South America’s Global Reach
BY PATRICIO BORIC AND ITALO GODOY
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n July 2019, Chile took a step toward building the first fiber-optic cable to directly connect South America and Asia, when the Transportation and Telecommunications Ministry signed a $US 3 million agreement with the Development Bank of Latin America (CAF) to finance a feasibility study for a trans-Pacific cable. At that time, Chile’s telecommunications minister said that the cable would position the country as the gateway for data entry to the region and as an attractive location to establish data centers. Argentina, Brazil, and Ecuador have all expressed interest in the cable, the ministry said. The overall objective of this study was to conduct a prospective study to determine the technical, legal, and economic feasibility required for constructing a submarine fiber optic cable between South America and Asia. The specific objectives of the study included aspects related to the implementation of an international submarine cable between South America and Asia, an analysis of economic viability through the determination of supply and demand, the identification of traffic sources supporting the project,
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and an evaluation of the necessary regulatory framework. Additionally, the study focused on determining the optimal technical factors and the suggested route, along with an analysis of alternatives and the regional economic impact the initiative would have on connection quality and costs. Finally, the study proposed the integration of networks and markets in South America, the development of business and governance models, and the identification of potential landing countries and associated risks to present a profitable business case. Bids were received from eight international consortia, and the Chilean Undersecretariat of Telecommunications (Subsecretaría de Telecomunicaciones SUBTEL in Spanish, the state agency in charge of the process), awarded the contract to the consortium formed by the companies Telecommunications Management Group (TMG) and WFN Strategies LLC (WFN). As part of the study’s deliverables, six possible routes across the Pacific from Chile to Oceania/Asia were analyzed, as shown in the attached figure. Based on the results of that study, which included a