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11 February 2013
| Richard Irving
Hibernia Networks has halted all work on its flagship $300 million transatlantic cable, the Hibernian Express, after becoming embroiled in mounting tensions between the US and China over cyber security.
The company was forced to suspend all work on the project,
the first attempt to lay a cable across the Atlantic in more
than a decade, after key US carriers gave warning that they
would not be able to use the proposed network for fear of
risking the loss of lucrative contracts with US
federal government agencies.
The delay marks the first big casualty in the escalating row
between the US and China over alleged links between Chinese
equipment makers and the country's secret services. The
development also highlights the growing determination of US
authorities to blacklist Chinese equipment makers from new
infrastructure projects that could affect the integrity of US
Mike Saunders, vice president of business development at
Hibernia, told Capacity that the crisis would...
It's not just the vendor community that will be monitoring this situation extremely closely. In its response statement on Wednesday, Huawei said 45 out of 50 leading telcos use their services. If the US plays hardball, this could have huge implications for major players in the market.
Feb 15, 2013
It will be interesting to determine whether the national security concerns on Huawei Marine Networks will now present an opportunity to maligned repeatered system providers, like Alcatel-Lucent, as mentioned. Perhaps if more stories like this are revealed it will lead the US to assess and or alter its view on a straight ban.
Feb 15, 2013
While it is understandable that national security concerns of a US House Intelligence Committee trump most other considerations, it has been a point of issue in the industry for some time that guidance / regulations from US "Team Telecom" are at best unclear and may be non-existent. The impact of this opacity on Hibernia, a well-established transatlantic operator with an innovative business case for a new cable, is obvious. Cancellation of the supply contract incurs financial penalties and allows competing proposals for new low latency systems to steal a march. The impact on the system supply market is more significant. The industry has been waiting for the upstart Huawei Marine Networks to prove itself with the installation of an ultra-long haul repeatered system and Hibernia Express was probably the most likely candidate in HMN's sales pipeline. This leaves a thin field of turnkey repeatered system providers which faces further uncertainty because the market leader, Alcatel-Lucent, is apparently looking to sell off its submarine system business. Although the US can point to the precedent created last year by the Australian government who explicitly banned Huawei equipment from their National Broadband Network, one has to ask whether a straight ban, official or unofficial, is the best solution when it sacrifices competition and innovation at the altar of national security.
Feb 11, 2013
Capacity Asia day 3 – Kyle Okamoto, head of global IP network at Verizon Digital Media Services, has praised US IP transit regulation for becoming more lenient and helping to increase competition in the market.
Capacity talks to Christine Pop, GM, Global Carrier Solutions, Allstream, on the drivers that have seen the Canadian wholesale market mature.
Capacity Asia day 1 – China Mobile has signed a partnership with NTT DoCoMo for TD-LTE roaming services in China.
Capacity Asia day 2 – At Capacity Asia 2014 in Bangkok, Thailand, this week, China Telecom Global (CTG) has revealed a number of strategies designed to meet the widespread demands of the global wholesale telecoms market.
Chinese vendor Huawei and China Telecom have today announced the successful deployment of what is claimed to be the world’s first transport software defined network (T-SDN).
Spain’s Telefónica is reportedly looking to sell a stake in China Unicom, and expects to raise $859-$875 million from the sale.