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Google says its not going into the telecom business

Telecommunications traffic between the U.S., Asia, Europe, and the Middle East is growing by leaps and bounds. According to TeleGeography, trans-Pacific bandwidth demand grew by 63.7% annually from 2002 to 2007.

Accommodating the increased demand for bandwidth requires more physical connections between the U.S. and countries across the Pacific Ocean.  Google is by many estimates one of the largest consumers of bandwidth with not only its massively popular search engine, but its video services from YouTube.

Traditionally, Google bought bandwidth form large providers. InformationWeek reports that Google announced it will buy into a new undersea cable with five other companies including Bharti Airtel, Global Transit, KDDI Corporation, Pacnet, and SingTel. The other companies include some of the biggest telecommunications companies serving overseas markets.

Google insists that it is not trying to become a player in the telecom industry. This statement is in contradictory to some of the things Google has done recently, like bidding in the FCC spectrum auction. Google network acquisitions manager Francois Sterin said in a blog post, “If you're wondering whether we're going into the undersea cable business, the answer is no. We're not competing with telecom providers, but the volume of data we need to move around the world has grown to the point where in some cases we've exceeded the ability traditional players can offer. Our partnership with these companies is just another step in ensuring that we're delivering the best possible experience to people around the world”

The 10,000km Unity submarine cable will cost the partners $300 million to install. Construction of the cable is expected to be complete in 2010 and according to Google the cable will increase trans-Pacific bandwidth available by 20%.

The Unity cable isn’t the only trans-Pacific cable being constructed. Three other submarine cables are being constructed including the Trans-Pacific Express Cable System, Asia-America Gateway Cable System, and a new cable by Reliance FLAG.

The increased bandwidth and redundancy is certainly needed in light of the five undersea cables that were cut in January and February. The cause of several of the cuts is still unknown and sabotage hasn’t been ruled out.

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undersea cable
By xiv on 2/26/2008 7:18:10 PM , Rating: 5
this might be just the first step. In the long run, it would certainly be much cheaper for them to own some part of the backbone instead of just buying bandwidth from others.

eliminate the middleman and get all the income for yourself.

RE: undersea cable
By Ashrac on 2/27/2008 6:32:34 PM , Rating: 2
Maybe they should go into the service provider area. They have the money to roll out infrastructure and grow it. Imagine a new super-fast internet at low prices without service filtering! Or at least all the internet videos you can watch.

"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov
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