Recent disruptions, such as the South-East-Asia-Middle-East-Western-Europe (SEA-ME-WE) cable severance in Egypt, highlight the critical role of subsea cables in global internet connectivity. Subsea cables are a key part of the world’s information superhighways, with over $10 trillion of financial transactions carried out through these cables each day. As digital demand surges, particularly across the Southeast Asia (SEA) region, submarine cables are pivotal, linking data centres globally. According to Research and Markets, the submarine cable system market in Asia Pacific (APAC) is expected to increase in value from $235.85 million in 2021 to $546.78 million by 2028, at a compound annual growth rate (CAGR) of 12.8 per cent during this period.
In the SEA region, telecom giants like the Philippine Long Distance Telephone Company (PLDT) and Globe Telecom are investing heavily in new submarine cables to bolster internet capacity amidst booming e-commerce and digital activities. For instance, PLDT’s Asia Direct Cable (ADC) aims to enhance connectivity with East Asia and SEA, significantly boosting its international capacity.
Developments and plans in SEA
Singapore
Singapore plans to enhance its digital connectivity by doubling its international subsea cable capacity over the next decade, reinforcing its position as a leading global network hub. In tandem with this, Singapore will invest in green data centres to boost domestic computing capacity, attracting significant investments and supporting future digital needs like AI and autonomous systems. Currently, Singapore hosts 26 subsea cables across three landing sites, and the new blueprint aims to double this capacity, solidifying its role as a connectivity hub for SEA and beyond.
Thailand
Thailand is part of the ADC project, connecting with countries like China, Singapore, the Philippines, Japan and Vietnam through a 9,400 km cable. Currently, Thailand hosts eight international submarine cable systems, with two more under construction, reinforcing its digital development and international network stability. National Telecom Public Company Limited, the key submarine cable provider in the country, has reaffirmed its commitment to enhancing national and global connectivity.
Indonesia
Indonesia’s subsea cable market is experiencing robust growth, with its value expected to reach $220.5 million by 2027, implyng a CAGR of 13.5 per cent from 2019. The rising demand for uninterrupted data connectivity and fibre optic-based interconnectivity drives the market, making subsea cables crucial for international internet traffic. Geopolitical dynamics enhance Indonesia’s appeal as a prime destination for cable providers and investors, strategically positioning the country within the region.
Malaysia
The region faces challenges like cable damage from human activities and geopolitical tensions in the South China Sea, affecting connectivity across SEA. To bolster infrastructure, Malaysia is constructing four new undersea cables, part of efforts under the MyDigital initiative to establish submarine cable landings in SEA by 2025. Telekom Malaysia is also working on a new 19,200 km long submarine cable system, slated for completion by early 2025, promising to significantly increase capacity through more fibre pairs compared to previous systems like South East Asia-Middle East-Western Europe 4 (SEA-ME-WE 4).
Vietnam
Vietnam is connected to the world internet through five subsea cables, but most of these cables often face disruptions, affecting service and reliability. As of June 2024, it was reported that three out of five cables were down. In fact, in 2023, all the five cables were disrupted for weeks. Despite these disruptions, Vietnam is actively expanding its cable infrastructure to enhance digital connectivity and reliability.
The country aims to add two to four international internet cables by 2025 and another four to six by 2030, increasing the total number of submarine cables to at least 15, with a total capacity of 334 Tbps by 2030 from the current 62 Tbps.
Major subsea cable projects in Southeast Asia
SJC2
The SJC2 submarine cable system spans 10,500 km, connecting 11 cable landing stations across Singapore, Thailand, Cambodia, Vietnam, Hong Kong, Taiwan, mainland China, Korea and Japan. The SJC2 cable features eight fibre pairs, each with at least 18 Tbps of capacity, totalling an initial design capacity of 144 Tbps. The SJC2 consortium, comprising China Mobile International, Chuan Wei, Chunghwa Telecom, Donghwa Telecom, Facebook, KDDI, Singtel, SK Broadband, Telin, TICC, and VNPT, selected NEC as the turnkey supplier for the most advanced optical fibre submarine cable system.
Asia Link Cable
The Asia Link Cable (ALC), a 6,000 km undersea cable running through the South China Sea, connects Hong Kong SAR China and Singapore with branches extending into the Philippines, Brunei Darussalam, and Hainan, China. Established by a pan-Asian consortium comprising Singtel, China Telecom Global, CTC, Global Telecom, DITO, and Unified National Networks, ALC features a minimum of eight fibre pairs with a trunk capacity of at least 18 Tbps per pair. This cable system significantly enhances capacity and diversity within existing regional networks, contributing to hyper-capacity and resilience for international traffic, and bolstering connectivity and supporting the region’s digital infrastructure.
Echo and Bifrost
Echo and Bifrost are two essential subsea cables connecting the APAC region and North America, forming the first transpacific cables through a new route across the Java Sea, set to increase overall transpacific capacity by 70 per cent. Echo is being developed in partnership with Google linking Singapore, Indonesia and North America to provide increased internet capacity, redundancy and reliability. Bifrost, a collaboration with Telin and Singaporean conglomerate Keppel, is due for completion in 2024, spanning over 15,000 km and connecting Singapore, Indonesia, the Philippines, Guam and the west coast of the US. Together, Echo and Bifrost will significantly enhance connectivity, support growth, and reinforce the digital infrastructure between these regions.
APCN 2
The Asia-Pacific Cable Network 2 (APCN 2) spans approximately 19,000 km, connecting key landing points across the APAC region. It boasts a total bandwidth capacity of 2.56 Tbps and operates with four pairs of optical fibre, each supporting 640 Gbps through dense wavelength division multiplexing. Despite facing challenges from natural disasters and cable damage, APCN 2 remains a critical link for regional connectivity and data exchange.
FLAG
The Fibre-optic Link Around the Globe (FLAG) plays a crucial role in connecting SEA to the rest of the world. FLAG is a 28,000 km long submarine communications cable that connects the UK, Japan, India, and numerous other countries. It carries over 120,000 voice channels via 27,000 km of mostly undersea cable.
Challenges
Human activities at sea
Fishing, anchoring and sand dredging pose significant risks to submarine cables, especially in congested areas like the Straits of Malacca and Singapore. In 2018, a Singapore-flag vessel accidentally damaged an Indonesian submarine cable near the Riau Islands, disrupting connectivity in the region. Incidents like a Malaysian company’s dredging damaging a submarine cable between Satun (Thailand) and Kuala Perlis (Malaysia) highlight the vulnerability of cables to commercial operations.
Intentional damage and theft
Instances such as fishermen in Vietnam removing sections of submarine cables in 2007, nearly severing the country’s international communication, underline the threat of intentional damage. International laws face challenges to adequately protect cables from theft or terrorist acts in maritime zones under international law.
Geopolitical tensions
Approval for cable installations and maintenance in contested waters require consensus from all claimant states, including China, leading to delays and uncertainties. Subsea cables often become entangled in broader geopolitical rivalries, impacting connectivity strategies and investments across Southeast Asia.
Future outlook
SEA’s digital economy is expected to reach $1 trillion by 2030. Increased cable capacity translates to faster data transfer speeds and improved internet connectivity, crucial for businesses in a globalised
marketplace. Ensuring the security and resilience of these cables is paramount for leveraging digitalisation for regional development. Notable projects like the ALC system, linking SEA and China, are set to enhance connectivity across the region’s critical undersea communications infrastructure.
Approximately 10 major cable projects spanning 10,000 to 20,000 km are slated to be operational by 2025, meeting escalating bandwidth needs.
