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Chinese telecom companies are looking to the ocean floor

December 31, 2015

Telecommunications companies in China are turning to the ocean floor for new growth and profit opportunities, a recent article on China Daily reports.

The green light for exporting homemade information technology products has been given by the industry watchdog.

As a result, deals are being made to lay transcontinental undersea cables by Huawei Technologies Co. Ltd., as well as other State-owned carriers.

Huawei have joined forces with UK-based Global Marine Systems Ltd., to create Huawei Marine Networks Co. Ltd.

In October, the joint venture announced they would be undergoing a project to connect Cameroon in Africa to Brazil in South America with a 6,000km cable. The project is set to be completed by 2017.

The company is currently in the process of laying cable on the seafloor of the Atlantic which has the ability to transmit 32TB of data per second.

While the firm is implementing a self-developed technique to decrease the costs of construction, it is estimated that the cost for lying undersea cables can be more than $200,000 per kilometre. Extra costs can be incurred by the burying of cables.

Over the next year, China's plan is to develop an infrastructure to help East African economies. The company's Cameroon-Brazil project fits into this government project.

"The government is increasing investment in Africa, which gives Chinese IT companies bigger options to land deals," CEO of Chinese server maker Inspur Technologies Co. Ltd., Sun Pishu, said.

In 2018, a project named New Cross Pacific is planned to become operational. China Unicom and China Telecommunications Corp. are among the carriers which have agreed to join forces with firms across the globe.

The project aims to connect China, South Korea and Japan with the United States by building a 13,000km fiber-optic cable on the floor of the Pacific.

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