In his presentation titled “Jules Verne and the 20,000 Leagues of Subsea Cables: A True Tale About Submarine Cables,” Mariano noted that submarine cables are “one of the wonders of engineering.” Submarine cables play an important role in global Internet infrastructure and there are currently around 406 operational submarine cable systems worldwide, Rogerio Mariano, Director of Network Edge Strategy at Azion Technologies, shared with participants at LACNIC 34 – LACNOG 2020. Latency data presented do not supersede latency guarantees specified in customers’ service level agreements.“The World Connects to the Internet Over Subsea Cables” Latency data were provided to TeleGeography by cable operators and have not been independently verified. NOTES Latency is expressed in milliseconds of round trip delay (RTD). The lowest trans-Atlantic latency is presently found on the Atlantic Crossing-1 South cable.
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So while one operator may provide superior subsea latency, advantage could go to another cable that has the lowest combined latency of the subsea span plus backhaul.
The statistics do not factor in the terrestrial backhaul required to link cable stations to major cities. The figure to the right depicts the latencies of cables on the trans-Atlantic route. The most commonly-used metric to express latency is the round trip delay, which is the time required for a signal to travel in both directions over a link. One important cause of latency in long-haul networks is "propagation delay." This refers to the time it takes for a signal to traverse fiber and is a function of geographic distance. Latency comes from a variety of sources, including network congestion, over-utilized routers, and firewalls. For financial institutions, even a few milliseconds of reduced delay can improve the profitability of trading operations. The reduction of long-haul transmission latency has become a key concern for content providers, financial institutions, and online video providers. Private network traffic comprises most of the remaining used capacity with switched voice accounting for just 0.2 percent of traffic. Across the Atlantic more than 75 percent of used capacity is used to carry Internet traffic. Internet traffic accounts for most of lit capacity. Lit capacity is used for circuits carrying one of three possible types of traffic: Internet, private network, and switched voice.
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Some unused capacity is accounted for by other factors including contract structures, upgrade lead times, and market inefficiencies. Unused capacity can be held in reserve for restoration and redundancy. Operators must keep up with demand by availing the market of more lit capacity than is required for purchase. For example, less than half of lit trans-Atlantic capacity is used. The gap between lit and used capacity is striking. Submarine cable operators light capacity on their systems to use themselves or to sell to other carriers. NOTES Prices represent median monthly lease prices excluding local access and installation fees. In contrast, prices for 10 Gbps wavelengths between London and New York shifted only slightly during the same time span. The median price charged for 10 Gbps wavelengths on the Hong Kong-Tokyo route decreased over 50 percent between Q4 2007 and Q3 2011. Upgrades and new cable construction have accelerated the rate of price decline on some routes, including intra-Asia and trans-Pacific, while other routes have seen relative price stability. The rate of price decline for capacity can also vary from one route to the next. The median monthly lease price of 10 Gbps wavelengths between Hong Kong and London, for example, is more than 15 times greater than comparable capacity between London and New York. Levels of competition, degrees of market saturation, regulatory hurdles and deployment costs can all lead to drastically different pricing for the same capacity on different routes. The price of capacity can vary widely by route.
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