Submarine Networks EMEA 2023, held in London from May 30th to June 1st, once again proved to be a tremendous success. The event attracted a focused audience, evident from the impressive attendance at the conference sessions. For those who were not able to come, we have compiled a summary of our key insights from the event below.

The subsea industry is grappling with the rising cost of capital, leading to project delays and the exploration of alternative funding sources. In Europe, we have observed interesting developments where projects are seeking funding from the European Union's Connecting Europe Facility (CEF) program. Additionally, national governments are showing increased interest in providing financial assistance or helping secure funds to support their respective national interests and digital agendas.

Consequently, projects face the ongoing challenge of delivering high-capacity connectivity with low latencies while minimizing costs. Reducing capital expenditure (CAPEX) and operational expenditure (OPEX) can be achieved through various means, with space and power being significant factors. Fortunately, new technical advancements seem poised to address these concerns.

One noteworthy technical development is the potential increase in unrepeatered subsea systems. Unlike repeatered systems, unrepeatered subsea systems span hundreds of kilometers and rely solely on optical amplifiers at the cable landing stations. They do not require active components in the middle of the link, eliminating the need for electrical power feeding. The unpowered nature of unrepeatered subsea systems makes them an appealing and cost-effective solution. They keep CAPEX and OPEX low, are easy to manage operationally, and allow for fast and flexible capacity upgrades. Consequently, the industry stands to benefit greatly if the distance for unrepeatered subsea systems can be extended, as demonstrated by several companies at the event.

Another important technical development is the growing number of Open Cable projects. Open Cables offer several touted benefits, including the ability to independently select vendors for wet plant and SLTE (Submarine Line Terminal Equipment), enabling the utilization of the best available technology for these critical components of the subsea system. Moreover, Open Cables allow buyers of fiber or spectrum to choose their preferred SLTE vendors, potentially increasing the number of buyers and the need for diverse and neutral facilities to house these SLTEs. As a result, this development aligns with our strategy of constructing neutral facilities, including data centers and Cable Landing Stations.

However, the rise of Open Cables may pose challenges for performance monitoring. While the deployment of a single SLTE technology allows for effective monitoring of the health and performance of a subsea cable, this data may not easily transfer or relate to the unique performance metrics of the next generation of SLTE deployed on the same cable. Therefore, it is encouraging to see an increased emphasis on monitoring and deploying additional sensors for other services in subsea cable systems.

We welcome all the new advancements in the subsea industry, and it comes as no surprise that questions regarding the CO2 footprint are now emerging. Customers who purchase capacity on cables are starting to include sustainability considerations in their requests for proposals (RFPs). This growing demand forces the industry to closely examine the carbon footprint of their active cables, as well as the construction of new systems and the recycling of end-of-life systems. Although not yet commonplace, we believe that the call for sustainability will continue to rise among the subsea community in the years to come.