FROM SEABED TO SERVICE: COMMERCIALISING A NEW SUBMARINE CABLE IN SMALL AND DEVELOPING COUNTRIES: STRATEGY, STRUCTURE, AND SERVICE READINESS By Paul McCann, John Hibbard
EXECUTIVE SUMMARY
Commercialising a new submarine cable in small and developing countries requires a coordinated approach that goes beyond technical deployment. To enter service successfully, the cable must be supported by a clear business plan, an appropriate ownership and operating model, a credible financial and demand case, and an organisation with the technical and management capability to run the asset effectively. Interconnection
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arrangements at both the domestic and international ends of the system are equally important, as they determine whether the cable can deliver affordable, resilient, and competitive connectivity to the market. In these environments, commercial success depends not only on infrastructure readiness, but on the ability to align policy, finance, operations, and market access into a sustainable service model.
1. BUSINESS PLAN A robust business plan is the foundation of commercialisation. It should define the purpose of the cable, the target customer segments, the expected role of the cable assets in the national connectivity strategy, and the pathway to financial sustainability. In small and developing countries, the business plan should also address market concentration, affordability objectives, the role of government or development finance, and the need for open access or wholesale competition. The plan should explain who will buy capacity, why they will prefer the new system over existing alternatives, and how the operator will manage risk over
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the cable’s life. A comprehensive Business Plan needs to address the following aspects: 1.1 Commercial Options Model The Business Plan needs to address the most appropriate commercial operating model for the cable system. The Commercial Model sets out how the cable will be owned, operated, and sold into the market. Common options include a fully private operator model, a consortium model, a public-private partnership, or an open-access wholesale vehicle. Industry experience shows that newer systems increasingly use private or condominium-style structures to support more flexible capacity ownership and monetisation, while open-access approaches can be particularly important in smaller markets where competition and fair access are policy priorities. The right model depends on national policy, investor appetite, market size, and the strategic importance of the cable to the country’s digital development. 1.2 Financial Model The financial model should trans-