Big Tech’s next frontier is global connectivity

The news: Meta is planning a groundbreaking $10 billion subsea cable project spanning over 24,855 miles (40,000 km), per TechCrunch. 

The fiber-optic cable will connect major global regions in a “W” shape, linking the US, India, South Africa, and Australia and make Meta the sole owner and user of the cable. This gives it dedicated infrastructure to address growing internet traffic in the region. 

Meta’s Facebook, Instagram, and WhatsApp currently account for 10% of global fixed and 22% of mobile internet usage, per Sandvine. Those stats shine a spotlight on the company’s growing influence on digital interactions and content consumption as it expands into new regions.

Big Tech is building information pipelines: Meta’s sole ownership of subsea cables ensures a high level of control and potential for growth of its services in emerging countries.

• Once completed, the new infrastructure should be able to facilitate fast data transfers for future AI applications.
• Meta estimates that the infrastructure could “create up to 3.7 million new jobs in the Asia-Pacific region by 2025.”

Google recently announced plans for its own subsea cable linking Australia’s Indian Ocean territory to the northern garrison city of Darwin. It’s also connecting Portugal, Bermuda, and the US through its Nuvem subsea cable.

With expanded reach into new regions, Big Tech companies have the opportunity to increase their services and could even become network providers with their own internet and wireless data services.

The opportunity: Google and Meta can differentiate themselves from competitors in emerging economies by securing the necessary data pipelines without relying on partners or local telecom providers.

Their businesses are rooted in advertising—owning their own infrastructure ensures faster and more reliable delivery of services, which can aid real-time marketing efforts and global advertising strategies.

Key takeaway: As mature markets saturate, Big Tech is investing in expansion into new regions to better manage their vast data flows, reduce latency, and improve user experiences across their platforms. This could disrupt legacy telecom operators in these regions who are unable to compete in infrastructure expansion due to high costs.

Google’s planned subsea cable (Source: Google)

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