The upgrade on the EAC2 ring of the system, which spans Hong Kong, Singapore, the Philippines, and Taiwan, will raise the bandwidth capacity on those routes to 160 Gbits/sec. This will be the third incremental capacity expansion this year for Asia Netcom. Previous upgrades have already more than doubled the capacity on the northern segment of the EAC system.
According to a Telegeography report in April this year, the global bandwidth market is showing signs of improved health, with supply equilibrium and price stability being primary indicators of this trend. This has led many network operators, including Asia Netcom, to light additional wavelengths and fiber pairs on an as-needed basis. This incremental approach to managing spare circuit inventories means that lit bandwidth supply and bandwidth demand are coming into balance.
"The trend forward as more sophisticated applications traverse undersea networks is the steady consumption of bandwidth. This is matched by the stabilizing of prices in the region over the past few months," said Bill Barney, president and CEO, Asia Netcom. "We are confident that this is the upturn the industry has been waiting for."
"We are seeing burgeoning demand on our undersea routes, and we are expanding quickly to meet that," added Wilfred Kwan, Asia Netcom's CTO. "We will continue to monitor the demand surge even as we expand our coverage within Asia Pacific and into key strategic markets internationally."
The EAC system spans 19,500 km within Asia connecting Korea, Japan, Taiwan, Philippines, Singapore, Hong Kong, and soon, China.
The additional capacity will support Asia Netcom's service and product portfolio, which includes MPLS-based transport and network offerings, a Tier 1 Internet backbone, as well as traditional connectivity services such as international private lines and ATM and Frame Relay.
The project, expected to be completed by November this year, will use NEC's submarine line terminal product, which is based on DWDM technology.