Global Subsea Resurgence LINX Member Meeting | Manchester | Aug 20 th 2018 VINAY NAGPAL President, InterGlobix LLC Customer Advisory Board, LINX NoVA Leadership Board & Executive Circle, NVTC
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Global Subsea ResurgenceLINX Member Meeting | Manchester | Aug 20th 2018
VINAY NAGPALPresident, InterGlobix LLC
Customer Advisory Board, LINX NoVALeadership Board & Executive Circle, NVTC
The World of Subsea Cables
• As of early 2018, 448 submarine cables in service globally
• 1.2M kms of cables
• 99% of international data is transmitted under water
• Typically carrier consortiums owned subsea projects
• OTTs/Content providers investing in subsea
Source: Telegeography Cable Landing Map
The World of Subsea Cables
Page 2 of 36
• Growth of data generation, data consumption, data centers, terrestrial fiber and subsea fiber are all interrelated
• Subsea bandwidth is growing at 40% CAGR globally
• Subsea cables are responsible for $10 Trillion in transactions every day
• Higher bandwidth needs and new optical technology is pushing 100G+ and single fiber can transmit hundreds of signals using DWDM technology
PARTS OF A SUBMARINE CABLE
Vital to the Internet Economy
Page 3 of 36
• Rapid shift from multiple carrier-led consortia to single-entity owned/operated systems
• Several Subsea systems area nearing EOL (25 yrs.)
• Subsea landing diversity important to avoid existing landings and to avoid congested terrestrial networks
• “System within a system” – two or more independently operated systems are incorporated within the same cable sheath
• OTTs/Cloud providers: Google, Microsoft, Facebook, Amazon are investing in subsea cables
The Resurgence | A Paradigm Shift
Page 4 of 36
• Incredible demand for high bandwidth capacity
• Enterprise adoption of Cloud services is driving demand
• Cloud providers are investing heavily in subsea cables for increased control
• Paradigm shift from consortium-owned cables to Cloud provider owned
Source: Telegeography
Private Networks’ Share of Used Bandwidth by Route
Cloud Providers Investing in Subsea
Source: Telegeography Cable Landing Map Page 5 of 36
Global Subsea Resurgence
New Products, Services & Business Models
• Toronto to Buffalo via Lake Ontario• Long Island to Wall, NJ via Atlantic
Ocean• Toronto to Montreal (JV with Metro
Optic, Utilities Kingston)
• Caribbean Islands to Americas• 40 planned landings connecting 28
islands together
• AEConnect-1 Long Island, NY to Killala, Ireland
• CeltixConnect-1 from Dublin, Ireland to Holyhead, UK
• AE Connect-2: Aqua Comms’s capacity on a consortium cable connecting NJ to Ireland, and Denmark with connectivity options to Norway
• CeltixConnect-2 ,North Sea Connect, North Wales Connect
• Seabras-1: Wall, NJ to Praia Grande, Brazil (Sao Paolo)
• ARBR: Las Toninas, Argentina (Buenos Aires) to Sao Paulo, Brazil
• SABR: Cape Town, South Africa to Recife, Brazil
• SAEx1: Cape Town, South Africa to Virginia Beach, USA
• SAEx2: Cape Town, South Africa to Chennai, India
• East London, South Africa to Punducherry, India
New Subsea Operators
Page 7 of 36
PRODUCT
• Dark Fiber Pair
• Lit Capacity: 10G, 100G, 200G Wavelengths (protected or unprotected)
• ¼ Dark Fiber Pair, ½ Dark Fiber Pair
• Spectrum
• FLEX Ethernet | 10GigE, 100GigE with IP addressing
CONTRACTING
• Entitlement
• IRU | 5 to 20 years
• Lease | 12, 24, 26 months
SERVICE DELIVERY
• SDN-enablement
• On-demand services
• Fast provisioning
NICHE PRODUCTS
• ULL solution for high-frequency traders and gaming customers (SeaSpeed by Seaborne)
• “Pay-As-You-Grow” (SeaCloud by Seaborne)
• Managed Spectrum by Aqua Comms
New Product & Commercial Models
Page 8 of 36
• Direct access to Diverse Submarine Cable Systems
• Physical Route Protection in the Atlantic Ocean
• Latency Enhancements
• Direct access to DE-CIX NY/NJ Distributed Mesh Peering Network
• $0 Cross Connect Fee in both locations | 1025Connect & NJFX
The Continental Edge
Page 9 of 36
• New carrier-neutral colocation / data centers focused on driving Subsea Ecosystem
• New Jersey | NJFX | “Tier-3 by Subsea”
• Tier-3 Colocation & CLS | 10-acre campus built in Wall NJ to facilitate subsea to terrestrial fiber handoff
CC1
AEC-2(2019)
AEC-2(2019)
CC2
AEC-1
SEABRAS
AEC-2(2019)
MAREA
MAREA
BilbaoSpainCLS
MumbaiCLS
EgyptCLS
InterxionMarsielleCLS CAMPUS
NJFX SUBSEA EXCHANGE
GATEWAYTO NYC
FINANCIALS
3 Corp Pl 1700 MacArthur
1400 Federal
VirginiaBeach
CLSNew Latency
Sensitive Route
111 8th 165 Halsey 300 JFK
755/800Secaucus
Latency Sensitive Diversity to
NYC / Financials
MBC / Uniti (proposed 2018)
CrossLake (proposed 2018)
Straussberg
MilanParis
Frankfurt
Amsterdam
Fortaleza
TORONTOCAN
Sao Paolo
TOKYOJAPAN
LatencySensitiveRoute to
Tokyo
Latency Sensitive Route to
South America
DENMARKCLS
GERMANYPOPS
Praia Grande
CLS
KILLALAIRELAND
CLS
UKPOPS
1025Connect
ShirleyCLS
CO. MAYOIRELAND
CLS
IRELANDPOPS
Latency Sensitive Route to Eurasia
LightowerCross Lake
Multiple Carriers
NJFX Subsea Colocation
Page 10 of 36
III
Camp PendletonBeach MH
SandbridgeBeach MH
Corporate Landing
• Marseille has become fastest growing Interconnection hub in last 3 years
• Digital Connectivity Gateway between Europe and Africa, Middle East and Asia
• Carrier-Neutral Subsea Colocation at the seaport of Marseille enabled Marseille to get:
ü 13 Subsea Cables
ü 130+ Network Carriers
ü 4 IXPs
ü 24x7 Support
A Role Model | Marseille, France
Page 11 of 36
Global Subsea Resurgence
Some Recent Subsea Projects
AMERICA EUROPE CONNECT
• AEConnect-1: Shirley, NY to Killala, Ireland
• AEConnect-2: Wall, NJ to Blaabjerg, Denmark; BUs in Lecanvey, Ireland and Kristiansand, Norway
• AEC-1 & AEC-2 together form the ‘North Atlantic Loop’
Aqua Comms | The North Atlantic Loop
Page 13 of 36
• Unique diverse, high capacity routes to UK and Europe
• Ring protection between mainland Europe, UK and Ireland and onwards to the US
• CeltixConnect-1: Dublin, Ireland to Holyhead, UK
• CeltixConnect-2: Dublin, Ireland to Blackpool, UK
• North Sea Connect: Newcastle, UK to Esbjerg, Denmark
• North Wales Connect: Anglesey, UK to Deeside, UK
Celtix Connect & North Sea Connect
Page 14 of 36
• Multiple contiguous channels can be provisioned to provide a portion of the overall spectrum
• Flexible and Scalable Bandwidth
• Flexible IRU options | 5 to 20 years
• Scalable Cost Structure | NRC IRU for initial spectrum (n x 100 Gbps), additional contiguous spectrum, or additional IRU options
Aqua Comms | Managed Spectrum
Page 15 of 36
• Seabras-1: Wall Township, NJ to Praia Grande, Brazil (metro Sao Paolo)
• ARBR: Praia Grande, Brazil to Las Toninas, Argentina (Buenos Aires)
• SABR: Recife, Brazil to Cape Town, South Africa
Seaborn Networks
Page 16 of 36
South Atlantic Express Cable (SAEx)
Page 17 of 36
Indian Ocean Exchange (IOX)
Page 18 of 36
Global Subsea Resurgence
Northern Virginia & Virginia Beach
ü#1 Data center market in the US
ü 70%+ world’s Internet traffic @Loudoun County
ü State tax incentives
üDominion Virginia favorable power rates
ü Abundant land, power and fiber
üHome of the Cloud
Northern Virginia | “DATA CENTER ALLEY”
Page 20 of 36
• LINX NoVA US launch: Jan 2014
• Data center agnostic:o Coresite (Reston)o DuPont Fabros/Digital Realty (Ashburn)o EvoSwitch/Iron Mountain (Manassas)
• Distributed Exchange Fabric | 54 Members | 500 Gbps
13 10
31
LINX NoVA in Virginia
Page 21 of 36
• Over 75 operating data centers
• 10M operating sq. ft.
• 4.5M sq. ft. under development
• Over 1000 MW (1 GW) of operating critical IT load
• $10.2B contributed by datacenter industry to VA’s economy
Northern Virginia Data Center Providers
Page 22 of 12Page 22 of 36
• Over 70% of world’s Internet traffic flows through Northern Virginia
• In order that traffic to leave eastern seaboard of US, it has to travel either to NY/NJ or to the state of Florida
• Currently there are 13 Subsea cables in NY/NJ and 22 in Florida
• In 2017, Virginia got it’s FIRST subsea cables (MAREA: co-owned by Microsoft, FB, Telxius)
Current State of Connectivity in Virginia
Page 23 of 36
• 10 Major Interconnection hubs in the US
• Subsea cable landings on West Coast and East Coast
US interconnection hubs:
1. NoVA: 21715 Filigree Ct.2. Atlanta: 55 Marietta3. NYC: 111 8th Avenue4. Seattle: Westin Building5. Dallas: 1950 N Stemmons 6. LA: 1 Wilshire 7. Miami: 50 NE 9th Street8. Chicago: 350 E Cermak9. San Fran: 200 Paul10. Bay Area: 11 Great Oaks
Connecting US to the World
Source: Telegeography Cable Landing Map Page 24 of 36
NY, NJ & FL Cable Landing Stations
Page 25 of 36
• MAREA, BRUSA, SAEx1, DUNANT
• Diverse from NY/NJ and Florida subsea cables
• Proximity to Northern Virginia data centers
• Faster, low-latency, direct connectivity for NoVA
• Confluence of North America, Caribbean, South America and Africa
• Avoidance of congestion points in North America and Europe
Virginia Beach | 0 to 4 in ~18 months
Page 26 of 36
• Owned by the City of VB Development Authority
• Easy access to I-264
• Infrastructure (streets, water, sewer)
• Area: 163 acres
• Power: 34.5KV served by two substations with 0.5 mile of park (Dominion Energy)
• Fiber Providers: Cox, MBC, Verizon, MFN, Level 3
• Technology Zone Creation: program to include variety of incentives
– Rebate of business license tax– Reimbursement of business license fee– Reimbursement of water & sewage connection fees
Cable LandingStation
Data Center Ready Site
Corporate Landing Business Park
Page 27 of 36
• Economic Development impact– $9M towards economy, 61 jobs already created
• Faster connection across the Atlantic– MAREA will be fastest cable to connect US to Europe– 160 Tbps across Atlantic
• Low latency to Europe and to South America
• Better connectivity options for Northern Virginia– Several dark fiber providers are planning diverse dark fiber
routes from VA Beach to Northern Virginia
• Data Center & Cloud growth catalyst
• Report identified over 14 High Tech Service Industry Clusters that would benefit from subsea cables
Economic Development Benefits
Page 28 of 36
ü The City of Virginia Beach has begun the process of establishing offshore cable protection zones for all transatlantic telecommunications cable landing locations.
üWhen established this will be the first cable protection zone in North America.
Proposed Cable Protection Zones
Page 29 of 36
Camp Pendelton MAREA & BRUSA 26,387 feet
Sandbridge31,602 feet
Telxius CLSMAREA & BRUSA
CORPORTE LANDING
• Camp Pendelton | MAREA & BRUSA
• Landings for SAEx1 & Dunant – TBD
• City of Virginia Beach is proactively planning proactive conduit and beach MH infrastructure at diverse location | Sandbridge
• Friendly business environment for subsea cable permitting and licensing
Diversified Subsea Cable Landings
Page 30 of 36
Virginia Beach Subsea Ecosystem
Page 31 of 36
Global Subsea Resurgence
Wrap-Up/Summary
• 2018 to 2020: $8.7B in Subsea Cable Investment Key Drivers1. Ownership Economics2. Route Diversity3. Provider Diversity4. Costs
• Pricing of adding capacity to a cable continues to fall:– In 2018 cost of adding 1 Tbps to a subsea cable is half of what it was
few years ago
• “Lit” vs “Potential” capacity:– Lit: amount of capacity a cable can handle presently– Potential: amount of capacity a cable can handle when fully equipped
Subsea Cable Investment
Page 33 of 36
• Subsea Cable Resurgence is going to continue for at least next 3-5 years
• Subsea Colocation driving carrier-neutral colocation sites as CLS and subsea-terrestrial fiber handoff facilities
• Diverse landing points and new business models
• Data Center industry will proactively work hand-in-hand with the subsea industry
Summary
Page 34 of 36
Subsea Cable Trivia
• 4-16 strands fibers in a cable
• 160 channels one fiber pair (two-way highway) can be subdivided into
• 1000 times strength of fiber compared to hair (same thickness)
• 25 years cable lifespan
• $300-$400MM project cost
• 2 secs transfer Library of Congress across the Atlantic Ocean
• 1858 first subsea cable laid
Page 35 of 36
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