Alphabet
’s
GOOGL
division, Google has been consistently making efforts to expand its global presence on the back of its undersea cables.
Reportedly, Google’s private subsea cable Equiano — which is structured to connect Africa to Europe — has finally arrived in Togo, one of the countries in West Africa.
Google strives to offer higher Internet speeds at affordable rates to 8 million residents of the country.
With the help of this digital infrastructure initiative, Google aims to aid the government of Togo to boost the country’s economic development. Reportedly, the cable will generate 37 thousand jobs and increase GDP by $193 million.
Later this year, Equiano cable will land in Nigeria, Namibia and South Africa, with branches providing connectivity to the nearby countries.
These efforts bode well for the company’s commitment to offer cheaper Internet access to users in the African continent.
Additionally, they are in sync with Google’s plans to invest $1 billion to support the African continent across various sectors.
Growing Subsea Cable Globally
Google is committed to provide improved connectivity across the globe. It has been heavily investing in underwater cable infrastructure.
Apart from introducing the Equiano cable in Africa, the company unveiled an open subsea cable, Firmina, which will be connected from the East Coast of the United States to Las Toninas, Argentina, with additional landings in Praia Grande, Brazil, and Punta del Este, Uruguay.
In addition, GOOGL invested in the Echo subsea cable, which will be running from the United States to Asia. It will be the first cable to directly connect Singapore to the United States.
Further, its investment in the Dunant subsea cable — which connects the United States to mainland Europe — remains noteworthy.
These growing investments will continue to help GOOGL penetrate the global submarine cable system market, which is witnessing a significant rise due to the growing adoption of mobiles and Internet usage, increasing need for offshore communication system, and the rising demand for power supply.
Per a report by Research Nester, the underlined market is expected to progress at a CAGR of 12% between 2022 and 2030.
Competitive Scenario
Given this upbeat scenario, not only Google but also other companies like
Meta
FB
,
Amazon
AMZN
and
Microsoft
MSFT
are making strong efforts to expand their presence in the market.
Meta is increasing investments in subsea fiber-optic cables for expanding broadband capacity in developing and emerging markets. It is worth mentioning that the company has helped in developing two subsea cables in the Asia-Pacific region. Further, FB along with regional and global partners announced a new segment of subsea cable called 2Africa Pearls connecting three continents Africa, Europe, and Asia.
Amazon has been investing in the submarine cable project in order to improve the capacity on the global network connecting the data centers that host cloud services. Its investment in the Hawaiki Submarine Cable remains noteworthy. Through this cable, AMZN offers low latency and high bandwidth connection from Australia to New Zealand and the United States.
Microsoft, in collaboration with China Mobile, China Telecom and others, made investments in building the physical subsea landing cable connecting the United States to China. Further, its investments in AEConnect-1, GTT Express, MAREA, and New Cross Pacific Cable System remain a tailwind.
Nevertheless, Google’s expanding global footprint and growing Internet cable investments will continue to provide a competitive edge over the abovementioned companies.
Currently, Google’s parent Alphabet carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
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