Submarine cables are a critical part of global telecommunications infrastructure. As the backbone for Internet and international communications, they carry more than 90% of all global voice and data traffic – telephone conversations, the Internet, emails and television are all reliant on submarine cables. With the world’s bandwidth demand growing rapidly every day, capacity on underwater cable systems will only continue to increase over time, so we can only expect to see investment in submarine cable systems to increase as well.

Network Strategies has extensive experience providing strategic advice to Government and national operators on large scale projects. We offer economic, financial and technical analysis to support decision-making for submarine cable investment initiatives.

Cost-benefit analysis for international connectivity

We undertook a socio-economic feasibility study, funded by the Asian Development Bank, of an international submarine cable for the Cook Islands. Following detailed consultation with a wide range of stakeholders, we developed a financial model of a potential business case for a submarine cable venture to deliver international connectivity to the Cook Islands. The study examined several different route options, and compared the costs against those of a solution using the O3b satellite system.

Feasibility of a domestic cable solution 

On behalf of Tonga Cable Limited, we developed a socio-economic feasibility study of four potential solutions, encompassing submarine cable and satellite options, to provide broadband and international connectivity to the island groups of Ha’apai and Vava’u in Tonga.

Procurement advice

For the New Zealand Government, we provided advisory services to assist with procurement of a submarine cable solution to meet the needs of New Zealand’s partner countries. We developed a detailed business case and economic analysis of a range of options, including independent build scenarios and offerings from commercial third-party ventures. Our results formed part of the commercial advice and recommendations provided to Treasury.

Demand- and supply-side analysis

We undertook a study of New Zealand’s international connectivity scenario – its current and future situation, and the implication of the failure of the Pacific Fibre project.  The objective was to review the consequences of Pacific Fibre’s failure by analysing various aspects of New Zealand’s broadband market including: current submarine cable systems, resilience and cable diversity, capacity needs based on projected traffic demand, interrelation between the different market segments (international transit, wholesale and retail) and the effects of international capacity prices on broadband retail prices.