Alphabet Inc (NASDAQ:GOOGL) And Facebook Inc (NASDAQ:FB) To Build Submarine Cable Connecting Los Angeles To Hong Kong

An Alphabet Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB) submarine cable system is in the works as the tech giants continue to invest big in the effort of bringing more people online and supporting their cloud operations. Slated for commercial launch in the summer of 2018, the ultra-high-capacity network will come with 12,800 km worth of fiber.

Google-Facebook Submarine Cable

Running from Los Angeles to Hong Kong, the undersea fiber cable would be able to support millions of High definition video conference at any given time.  The two tech giants are undertaking the massive project in partnership with undersea communications company Pacific Light Data Communication.

Facebook Submarine cable system will utilize the C+L technology in a bid to more than double bandwidth and capacity in each fiber. This should in return allow the cable stem to handle up to 120 terabytes of data per second between the two locations.

“PLCN will be among the lowest-latency fiber optic routes between Hong Kong and the US and the first to connect directly using ultra-high-capacity transmission, “said PLDC Chairman.

Push For Ultra-High Internet Speeds

However, this will not be the first subsea cable connecting the US to the outside world. There already exist such subsea cables connecting the US to Japan. Google also owns stakes in six such submarine cables. Early this year Facebook in partnership with Microsoft Corporation (NASDAQ:MSFT) laid their own submarine cable across the Atlantic Ocean.

Amazon.com, Inc. (NASDAQ:AMZN) Amazon Web Services is also in the process of building its own submarine cable that is to run from Hawaii to Australia. The development of such cables is being fueled by the growth in the number of people using Facebook apps.

Growth in cloud services offered by the likes of Google is also fuelling demand for high internet speeds as well as storage capacity. Once the submarine cable system is competing the search giant should be able to expand its footprint in Asia especially on the delivery of enterprise services.

Facebook submarine cable should also allow the social network to attract more users in Asia given its array of social networking apps.

Facebook stock closed Wednesday’s trading session on high having rallied by 0.13% to $129.05, close to its 52 week high of $131.98 a share.

Google’s impressive run for the year continues having closed on a high of $811.7 ,rallying by 0.27%.

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