Vodafone Investing in Submarine Cable

Vodafone Malta has begun laying a high-capacity fibre optic submarine cable between Malta and Sicily, to provide Malta its second international gateway. Vodafone's new international gateway will have an initial capacity of 2.5 Gbits/sec. The capacity of the new cable will be split between voice and IP data services with an initial 40 Mbits/sec for voice and 90 Mbits/sec for data. The cable will have the potential to increase the capacity to over 1 Tbit/sec, making the system future proof in terms of capacity expansion.

"The launch of Vodafone's international gateway represents a very important step in enhancing Malta's telecommunications infrastructure. The fact that Malta will shortly have two cable systems, which support all voice, data and Internet requirements will create a competitive market for voice and IP services. This will benefit customers and help to make Malta more competitive," said Vodafone Malta's Chief Executive Officer, Mr Joseph C. Grioli.

Prime Minister Lawrence Gonzi said that thanks to the full liberalisation of the telecommunications sector earlier this year, the market is gradually becoming a level playing field. The establishment of the second international gateway is in itself a catalyst for further investment both for current business in Malta as well as for interested foreign businesses wishing to relocate or set up business from Malta since this will remove the vulnerability experienced by one single gateway. In addition, this gateway will strengthen the national ICT strategy by increasing the robustness of the national ICT infrastructure given our geographical isolation.

The submarine cable which is being installed for Vodafone by Alcatel spans approximately 250km between Malta and Catania. After the completion of an extensive marine survey using sonar and other sophisticated equipment, the cable will now be laid on the sea bed at a maximum depth of 3,200 metres. Equipped with armoured steel protection, the cable is designed to withstand the harshest sea environment. Once the cable between Malta and Sicily is completed it will be connected to the land transmission system for onward connection to Milan. In Milan the international carriers will route the traffic to anywhere around the world.

Vodafone Malta's international gateway is set to provide an important incentive to foreign investors thinking of setting up a business in Malta. In the past several companies which were interested in investing in Malta shied away because there was only one cable link with Italy. "Companies involved in information technology, Internet betting and software support and writing do not want to be dependent on one cable. So from an investment point of view, Malta will clearly benefit. The new Vodafone gateway gives Malta a safety factor which it needs and which investors will appreciate," concluded Mr Grioli."

Posted to the site on 18th May 2004