Tag Archives: fiber optic cables

The Power of Cables with an Ocean View

submarine communications cable. Image from wikipedia

Access to ultra-fast internet cables in London is likely to make financial firms reluctant to move out of London even after Britain leaves the European Union, a study by the European Central Bank has found.

But an ECB study found that any withdrawal from London would likely be gradual as firms would be loath to give up on Britain’s fibre-optic cables, crucial for ultra-fast electronic trading.

“The UK’s advantage as a hub for trading using fibre-optic cables, combined with institutional inertia, suggest that any relocation of trading after Brexit, if at all, would likely be gradual,” the ECB said in its study.  Around 84 percent of transactions in euro are initiated outside the euro area, with Britain taking the lion’s share at 43 percent, according to a survey by the Bank for International Settlement cited in the ECB study.

“Technology has economically important implications for the distribution of foreign exchange transactions across financial centres, as a result,” the ECB said.   “Undersea fibre-optic cables provide a competitive advantage to financial centres located near oceans, like Singapore, because they are directly connected to the internet backbone, at the expense of landlocked cities like Zurich,” it added.

Excerpts from Fast Internet Likely to Keep Trading in London After Brexit: ECB, Reuters, July 5, 2017.

Who is Team Telecom: internet cables and US security

A real-estate magnate is financing Google’s and Facebook Inc.’s new trans-Pacific internet cable, the first such project that will be majority-owned by a single Chinese company.  Wei Junkang, 56, is the main financier of the cable between Los Angeles and Hong Kong, a reflection of growing interest from China’s investors in high-tech industries.   It will be the world’s highest-capacity internet link between Asia and the U.S.

For Alphabet Inc.’s Google and Facebook, the undersea cable provides a new data highway to the booming market in Southeast Asia. Google and Facebook, which are blocked in China but seeking ways back in, declined to comment on market possibilities in China. Google said the project, called the Pacific Light Cable Network, will be its sixth cable investment and will help it provide faster service to Asian customers…

Backers hope to have Pacific Light operating in late 2018. The elder Mr. Wei’s company, Pacific Light Data Communication Co., will own 60%, Eric Wei said, and Google and Facebook will each own 20%. The project cost is estimated at $500 million, and the Chinese company hired U.S. contractor TE SubCom to manufacture and lay the 17-millimeter wide, 7,954-mile long cable…

The cable project requires U.S. government approval, including a landing license from the Federal Communications Commission and a review by Team Telecom, a committee of officials from the departments of defense, homeland security and justice….

Pacific Light will likely face higher scrutiny from Team Telecom due to the controlling interest by a foreign investor, said Bruce McConnell, global vice president of the EastWest Institute and a former senior cybersecurity official with the Department of Homeland Security.

Team Telecom rarely rejects a landing license application, Mr. McConnell said, but cable operators must agree to security terms.“The agreement is usually heavily conditioned to ensure that (U.S.) security concerns are met,” he said.

The terms often require an American operator of the cable to assist U.S. authorities in legal electronic surveillance, including alerting regulators if foreign governments are believed to have accessed domestic data, according to copies of agreements filed with the FCC. The U.S. landing party usually must also be able to cut off U.S. data from the international network if asked…

More than 99% of the world’s internet and phone communications rely on fiber-optic cables crisscrossing continents and ocean floors. That makes these cables critical infrastructure to governments and a target for espionage.

One of the Eric Wei’s businesses is a Chinese alternative to the QR code called a D9 code, which the company promotes as a “safe” alternative to foreign technology.

Excerpts from  China Firm Backs Asia-US Cable, Wall Street Journal, Mar. 16, 2017

How Fiber Optic Cables can Listen to You

fiber optic cable

[T]he technology known as distributed acoustic sensing (DAS)… allows underground fibre-optic cables, like those used by telecoms companies, to be turned into a giant string of microphones. They can then be used to monitor all sorts of sensitive locations, from oil and gas pipelines to railway tracks, military bases and international borders. In its latest guise, DAS is even being used to help make hydraulic fracturing, or “fracking” as it is known, more efficient at releasing natural gas and oil trapped in rocks.

There are some limitations to the technology. Its powers of hearing are not sufficiently acute to pick up a conversation, for example. And since the cables inside buildings are typically a tangle of short lengths interrupted by junction-boxes, it is unlikely to work there. However, a long cable buried outdoors can provide the equivalent of a microphone every ten metres.  Algorithms are used to establish acoustic “fingerprints” for the sounds that are detected; and depending where and when they occur, each is assigned a level of risk, says Magnus McEwen-King, OptaSense’s managing director. Footsteps around a guarded facility at midday may not be unusual, but at 2am they would be.

OptaSense is also using the system to monitor sounds coming from below ground, in particular those produced by the water, sand and chemicals pumped under high pressure to fracture rock during fracking. There is concern about exactly what is going on underground, and in particular if the process might contaminate aquifers. Various seismic sensors can be used to monitor the fracking process, sometimes from test bores drilled nearby. But it is a costly and tricky process.

Shell and other oil companies are using a DAS system, which OptaSense calls vertical seismic profiling, to monitor their fracking. It uses a fibre-optic cable inserted into a well bore to build up an acoustic picture of the fracking fluid going into the rock at multiple levels. This means that potential problems, such as blockages, or leaks from one layer of rock to another, can be spotted before they become serious. And by having a clearer idea of how much fluid is going where, the fracking process can be constantly adjusted so that it runs in the most efficient way.

Listening for intruders and monitoring the efficiency of fracking are just two of the potentially lucrative applications of DAS technology. No doubt there will be others in the pipeline.

Acoustic sensing: The ear underground, Economist,  January 4, 2014, at 62