The last ten years has been a wild
From Circuits to Terabits
By Robert Mazer
not so long ago that we were speaking of
ride for submarine cables. The change in
cable capacity in terms of individual telephone
the ownership, market and technology of
circuits. Today we are speaking about Terabit
submarine cables during this time has been
cables, with vast amounts of capacity to send
nothing short of astonishing. Up until the
very large volumes of data almost anywhere in
middle 1990’s, submarine cables were owned
the world.
by a small club of international carriers. It
With all this change in the world of
had been this way for over 100 years since
undersea cables, there has been one constant:
the first transatlantic cables were brought
the law of supply and demand. Historically,
into service. Both ownership and access to
cables were built based on meticulous
submarine cables were tightly controlled. With
traffic planning projections by the club cable
the introduction of private (non-club) cables
operators. Historical traffic growth patterns and
this began to change. Non-club members
new traffic demands were analyzed before a
purchased Indefeasible Rights of Use (“IRU”)
decision was made to build a new transoceanic
and privately owned cables were constructed.
cable. AT&T, the predominate U.S. carrier,
In 1990 cables primarily carried telephone
was the leader of this process and worked
calls and some data services. Does anyone
closely with its subsea cable division. This
remember the emergence of x.25 networks?
process allowed for the orderly replacement
Today, submarine cables are the backbone
and upgrades of the subsea cables, facilitating
of the worldwide web, numerous private
the raising of the capital necessary to pay for
networks as well as international telephony
the new cable. While not a perfect system, it
which has become increasingly accessible to
provided for a process to get the best possible
everyone. Zeros and ones are zipping over
information on demand in order to ensure that
these networks to places all over the world. As
there was sufficient revenue to cover the cables
the traffic has grown, the cost to consumer of
cost.
international telecommunications has rapidly
This process began to break down in
declined. This has only fueled increased traffic
the early 1990’s when a confluence of events
demands. The technology has also made
made it possible to finance and construct new
enormous strides in the last ten years. It was
subsea cables. First, the new competitive
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