Analysts back upgrade to APCN2

Analysts have backed the announced upgrade to the Asia Pacific Network Cable 2 (APNC2) from 10 Gigabits per second (Gbps) to 40 Gbps, but have warned that Australia will need further cables and capacity in the future.

Currently, the APCN2 uses 10 Gbps dense wavelength division multiplexing (DWDM) and is supplied by NEC. The connection includes over 19,000 kms of cable and connects 10 landing stations in the Asia Pacific region.

NEC will also supply the 40 Gbps DWDM capacity upgrade, scheduled for completion in the second quarter of 2011, in response to increasing transmission demands in the region.

Commenting on the announcement, Buddecom director, Paul Budde, said the upgrade is an important one due to the constant need for higher international capacity and to drive down prices.

“Technology upgrades are great but still more cables will be needed," he said. "We need competition [as] if there are only a few players they [will] keep the prices high.”

Market Clarity founder and chief executive officer, Shara Evans, said the upgrade should ultimately drive down consumer prices and help meet increased demand for transmitting international data traffic.

“If the operators continue to upgrade capacity, and we now have what I would consider a competitive number of international cables coming in and out of Australia, I think the key would be the continual upgrade of capacity,” Evans said.

As reported by Computerworld Australia, the PIPE Networks undersea cable system, PIPE Pacific Cable (PPC-1), stretching from Sydney to Guam, was launched last October.

In the days before the launch, analysts called for more international submarine cable links to cater for continued growth in Internet traffic and to provide greater redundancy.


Copyright © 2010 IDG Communications, Inc.

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