Google and Meta Set to Challenge Jio, Airtel with New Subsea Cable Projects

Global technology giants Google and Meta are making significant strides in submarine cable infrastructure in India, challenging domestic telecom heavyweights such as Reliance Jio, Bharti Airtel, and Tata Communications. This move aligns with India's burgeoning data center market and highlights the importance of robust digital connectivity for global tech and enterprise operations.

Meta and Google’s Ambitious Submarine Cable Projects

Google’s Blue-Raman Submarine Cable

Google is set to launch its Blue-Raman Submarine Cable System in Mumbai by the first quarter of 2025. This $400-million project, boasting a substantial 218-Tbps capacity, includes partnerships with Italy’s Sparkle and others. Once operational, this will be Google’s 18th global investment in subsea cables.

Meta’s $10 Billion Cable Initiative

Meta is spearheading a $10-billion submarine cable project expected to deliver an impressive 500-Tbps capacity within three years. With its focus on India, a major hub for AI-driven consumer and enterprise markets, Meta’s cable is likely to anchor in Gujarat or Chennai, both significant locations for Reliance’s AI data centers.

Independent Players and Emerging Competition

Companies like Sify Technologies and Lightstorm are emerging as notable players in the subsea cable market. They offer cost-effective solutions compared to the traditionally dominant players like Airtel and Tata Communications.

Amajit Gupta, MD of Lightstorm, highlighted the shift in submarine cable traffic patterns, noting that 50% of today’s cable traffic stems from OTT platforms and hyperscalers such as Google, Meta, Amazon, and Microsoft.

Domestic Players and the Growing Market

Reliance Jio and Airtel are advancing their cable projects, including the 2Africa Pearls, India-Asia-Express (IAX), and India-Europe-Express (IEX). These initiatives are set to quadruple their capacity by early 2025, catering to the surging data demand.

Strategic Importance of India in the Subsea Market

India holds a pivotal role in global subsea infrastructure, given its geographic location and rising data sovereignty and security requirements. Between 2016 and 2020, $13.8 billion was invested globally in new cables, with an additional $18 billion planned for 2021-2025, according to Vinay Nagpal, CEO of InterGlobix LLC.

Regulatory Barriers in India

The Indian regulatory landscape, which mandates that only licensed International Long Distance (ILD) operators and ISP-A holders manage cable landing stations (CLS), poses challenges. Industry giants like Airtel and Tata Communications leverage these regulations, imposing high access charges. This has driven global tech players to explore more cost-effective alternatives.

Market Projections and Growth

The global submarine cable market, currently valued at $27.57 billion in 2023, is projected to grow to $40.58 billion by 2028. India’s subsea cable segment, the fastest-growing in the Asia-Pacific region, is expected to reach $78.6 million by 2030.

Conclusion

As Google and Meta channel massive investments and cutting-edge technology into India’s submarine cable infrastructure, the country is witnessing a transformative phase in its digital ecosystem. These strategic endeavors are not only challenging established domestic players such as Reliance Jio, Bharti Airtel, and Tata Communications but are also amplifying India’s position as a key player in global digital connectivity.

With domestic giants like Jio and Airtel significantly expanding their submarine cable capacity and independent players offering innovative, cost-effective solutions, the competition is heating up.

India’s growing prominence as a data hub is further underscored by its strategic geographic position and the rising demand for data sovereignty and security. This dynamic interplay of global tech investments and domestic advancements is poised to redefine the competitive landscape of the Indian data economy. As regulatory hurdles are addressed, India is on track to become a vital cornerstone in the global digital economy.