Ovum warns of possible sub cable bubble

摘要

Analyst and consulting firm, Ovum, Is warning of a possible price crash for services on international submarine cables because significant additional capacity Is due to come on stream in the next few years. According to Ovum, "investment in new Asian cables market was dormant between 2002 and 2006 as a glut of capacity was slowly used up. However, during 2007 a number of new trans-Pacific and intra-Asian cable investments were announced. These systems are scheduled to come on line during the 2008-2010 period, and will add significant new capacity." According to Ovum research director, David Kennedy, there are several reasons for this: the rising prices for IP bandwidth in certain markets; growing demand for additional routes, following the disruption of networks during the Taiwan earthquake of December 2006; pushes by domestic operators to secure capacity to support future broadband growth and a small number of large carriers aspiring to create global networks that reach most major country markets.