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Home  Practice Areas Submarine Systems Press Releases De-regulation & Demand for Improved Reliability Provides Investment Opportunities in Indian Ocean, P
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De-regulation & Demand for Improved Reliability Provides Investment Opportunities in Indian Ocean, P |
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De-regulation
& Demand for Improved Reliability Provides Investment Opportunities
in Indian Ocean, Persian Gulf, & Red Sea.
Bandwidth Demand for Regional Systems Seen Driving Growth at nearly 50% per year
BOSTON (April 15th, 2003) - ” De-regulation is encouraging new and
incumbent operators to expand beyond their domestic markets and to meet
demand for increased choice and redundancy on ultra-long haul routes.
But the main driver of future investment growth will be demand for
connectivity and route diversity on shorter-haul routes between
countries in the same region. These are the conclusions of Pioneer
Consulting's New Business Models for the Indian Ocean, Persian Gulf,
& Red Sea Submarine Cable Industries report which analyzes the
supply-demand balances in each of 21 countries.
Outsourcing to India is providing a rationale for greatly increasing
the level of international connectivity but Pioneer argues that this
phenomenon is only one of a number of drivers affecting demand for
bandwidth in this region. The pace of development in the Persian Gulf
is more measured but, with the eyes of the World upon them, most
countries have now committed to market liberalization.
Government-backed infrastructural investment in certain Red Sea states
is also creating new opportunities. This dynamic commercial environment
is spawning new business models. Pioneer's report weighs up the
pros and cons of various models for submarine cable construction and
operation.
"While there is a certain synergy between these regions, there
are key differences in the way that demand for submarine cable
connectivity is developing,"
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