Bharti Airtel With Telecom Egypt And Global Submarine Cable Systems
With this partnership with Telecom Egypt, Bharti Airtel will be able to diversify its global network(Global Submarine Cable Systems) to meet the demand for data services across South Asia, Africa, and the Middle East. Telecom major Bharti Airtel on Monday announced a strategic partnership with Egyptian operator Telecom Egypt (TE).
What is Global Submarine Cable Systems and How it Work?
A Global Submarine Cable Systems a cable laid on the sea bed between land-based stations to carry telecommunication signals across stretches of ocean and sea. The first submarine communications cables laid beginning in the 1850s carried telegraphy traffic, establishing the first instant telecommunications links between continents, such as the first transatlantic telegraph cable which became operational on 16 August 1858. Subsequent generations of cables carried telephone traffic, then data communications traffic.
Modern cables use optical fiber technology to carry digital data, which includes telephone, Internet and private data traffic. However, since their inception submarine cables were facing a bandwidth problem which made transoceanic communication expensive and mostly used for business or government transactions. As it was the case in the 19th century, Global Submarine cables laid by ships and thus capital-intensive projects.
The development of fiber optic transmission technology provided a substantial impetus in the setting of a global telecommunication network since it permitted significantly higher bandwidth and less signal degradation. The throughput of hundreds of gigabytes of information per second became possible. The first transatlantic fiber-optic cable (TAT-8) was laid in 1988 and over the years fiber optic cables were laid across the world, connecting economies and societies increasingly dependent on telecommunications (see above map). The internet could not have existed otherwise. While initial submarine cables were laid on a point to point basis. And technical advances permitted branching so that one cable could service a sequence of hubs (e.g. Africa and Latin America).
Bharti Airtel And Telecom Egypt
Bharti Airtel (“Airtel”), a leading global telecom services provider, and Telecom Egypt, Egypt’s first integrated telecom operator. It announced a strategic partnership, wherein, Airtel will get IRUs (Indefeasible Right of Use) on the Middle East North Africa Submarine Cable (MENA Cable) and TE-North Cable Systems. In addition, Airtel will also take large capacities on a long-term basis on two new state-of-the-art Cable Systems (SMW5 & AAE1). The transactions aim concluded after the fulfillment of all conditions precedents.
The partnership grants Airtel the right to use fiber pairs of MENA Cable from Egypt to India with access to Saudi Arabia and Oman. And other fiber pairs from Egypt towards Italy. It also extends beyond MENA Cable. Where Airtel will get the right to use a fiber pair from Egypt to France on TE North along with capacities on SMW5 and AAE1 cable systems.
With this, Airtel will be able to further diversify its global network to serve the massive growth in demand for data services. Particularly in emerging markets across South Asia, Africa, and the Middle East. While also benefitting from the favorable economics of Telecom Egypt’s existing wide cable systems network
What are said Ajay Chitkara, Director and CEO – Airtel Business,
“The partnership with Telecom Egypt underlines our commitment to provide world-class service experience to our customers. The partnership including MENA Cable and TE’s network will be a good addition to our global network portfolio. And provide us with high quality and a diversified new route to Western Europe and the rest of the world. With the explosion of data usage in emerging markets, including India and Africa. This asset will provide us with a scalable and diverse high capacity highway to serve our customers. In particular, it will provide an impetus to India’s emergence as a major regional internet hub. It serves customers across the SAARC region, with seamless global connectivity.”
Ahmed El Beheiry, Chief Executive Officer of Telecom Egypt commented,
Telecom Egypt’s global network built over the years. And through investments in consortiums as well as private international submarine cable systems. Our reach and position as an international hub with tens of Tbps lit capacity. It makes us the partner of choice for Euro-Asian and Euro-African transit traffic. Telecom Egypt signed the agreement with OTMT to acquire MENA Cable with the aim of capitalizing on the growing traffic.
From India and Saudi Arabia to Europe and to obtain a new gateway to Europe through Italy. We pleased to be able to sign the MoU with Airtel. And as well as able to bundle MENA’s assets with existing assets of the TE network. We aim to come back to the market with more details on the MoU. And its financial impact once the deal closed.
Egypt’s distinctive geographic location on the Red and Mediterranean seas has enabled Telecom Egypt to connect more than 11 cable systems from the East and 13 from the West linked with the Red-Med Corridor consisting of 7 diversified routes across Egypt. Telecom Egypt’s global network built over the years through investments in international submarine cable systems. Namely: TE North, ALTAR, SEA-ME-WE-3, SEA-ME-WE-4, SEA-ME-WE-5, IMEWE, EIG, and AAE-1.
Airtel’s global network portfolio includes ownership of i2i submarine cable system connecting Chennai to Singapore, consortium ownership of SMW4 submarine cable system connecting Chennai and Mumbai to Singapore and Europe, and new cable system investments like Asia America Gateway (AAG), India Middle East & Western Europe (IMEWE), Unity, EIG (Europe India Gateway) and East Africa Submarine System (EASSy). It also has terrestrial express connectivity to neighboring countries including Nepal, Pakistan, Bhutan, Bangladesh, and China.