Trans-Pacific Cable to Speed America/China Internet Connection
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Written By Kate Zimmermann | December 19, 2006 | Share This
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On Monday, Verizon signed with a six Asian telecommunications companies to build a $500 million Trans-Pacific undersea optical cable system. The new cable will speed up communications between the U.S. and China and increase network capacity for Asian & Pacific countries. Fred Briggs, Verizon Business’ executive VP of operations and technology, stated in Information Week, “This project . . .recognizes the emergence of China as a diverse communications hub for Asia, and reflects our company’s commitment to help U.S. and other global companies compete worldwide.” Indeed, last year Chinese internet users spent about $500 million in online advertising and $75 billion in e-commerce.
The cable will help American companies tap into China’s rapidly growing user base. Under the current system, access to overseas websites from China is impossibly slow - as the first Trans-Pacific connection between the US and China, the cable will alleviate the strain on existing networks. Given a faster internet connection, American companies will be better equipped to compete with home-grown services.
Ebay’s recent announcement to turn Ebay China into a joint venture with Tom Online reflects the difficulty that American media companies have had in the Chinese market. One of Ebay’s major problems in China was processing payment transactions - the new Trans-Pacific cable will enable such e-commerce applications (along with the transfer of advanced video and other complex files). Though government regulations, trade sanctions and local competition will still make it difficult for American media companies to succeed in China, the new cable is at least a sign of improvements to come.
Topics: ECommerce |
What a good news.The cable will help American companies tap into China’s rapidly growing user base. Under the current system, access to overseas websites from China is impossibly slow - as the first Trans-Pacific connection between the US and China, the cable will alleviate the strain on existing networks. Given a faster internet connection, American companies will be better equipped to compete with home-grown services.
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