No systems were added at all to this region from 2010-2015. Since then, the region has experienced steady growth with at least one system added each year for the period 2016-2019 and eight systems planned through 2022.
Figure 70 – KM Added – Transpacific
The amount of cable in the region nearly tripled during this period of growth and has seen over 120,000 kms of cable added since then. (Figure 70) Average system length in the region is just under 16,500 kms, owing to the Transpacific region having some of the longest routes in the world. Between the massive systems required to span the region, and the easy availability of cheap capacity upgrades, the historically static nature of the region comes as no surprise. Recently, however, there has been a noticeable uptick in system activity.
Figure 71 – Contract in Force – Transpacific, 2020-2022
There are currently eight planned systems set to be ready for service for the period 2020-2022 and only 25 percent of them have achieved the CIF milestone – a far cry from last year’s 56 percent CIF rate. (Figure 71) Nearly all these systems are trying to bring large capacity increases along their respective routes, but many of them are directly competing along the same or similar routes. With the average system length of all planned systems for the Transpacific market remaining around 16,500 kilometers, shorter cable lengths are not necessarily possible for systems that are exploring new routes.
These new systems provide a bonus of increased route diversity – especially along the southern part of the region. A few of the systems that are not yet CIF are backed by OTT providers. This takes them out of direct competition with other planned systems and removes some of the financial risk from having to sign on outside investors.