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Ocean Taps Xtera for Subsea Project

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1/16/2014
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ATLANTA -- Ocean Networks, Inc., the owner and developer of the South America Pacific Link (SAPL) submarine cable system, has signed a Letter of Intent (LOI) with Xtera Communications, Inc. for the turnkey supply and installation of the SAPL submarine cable system. This agreement is a key milestone in Ocean Networks planned 9,400 km trans-Pacific cable linking Manta, Ecuador to Oahu, Hawaii. Under the terms of the agreement, Xtera will design and install the SAPL system using their high-capacity submarine line terminal equipment and innovative subsea optical repeater. Xtera’s dry and wet transmission equipment is designed for reliable, ultra-long haul subsea cable systems. Utilizing a coherent, future proofed design, the SAPL system will have 3 fiber pairs with a design capacity exceeding 10 Tbit/s per fiber pair.

The SAPL system will also have two branching units based on optical add drop multiplexers and strategically positioned for future connectivity. The SAPL system will fill a requirement for the emerging markets of South America and provide connectivity to the Asia Pacific region, Australia and New Zealand via interconnects with existing and planned submarine cable systems. Hawaii is a mid-Pacific hub for numerous submarine cable systems and SAPL will provide a cost effective, direct, low latency route to Hawaii while opening a previously untapped trans-Pacific market to/from the west coast of South America.

In addition, at Manta, Ecuador, the SAPL system will interconnect with planned and existing systems to provide an improved route to the Caribbean region and US East Coast.

The SAPL cable system is planned for completion in mid-2016. “Ocean Networks is very confident in our choice of supplier. Xtera brings the latest, proven technology, demonstrated project management capabilities and a cost effective solution,” said Scott Schwertfager, CEO of Ocean Networks.

“Xtera is extremely pleased to have been awarded this strategic system for the emerging markets of South America. This is a further illustration of Xtera’s migration to the position of turnkey infrastructure supplier after the successful execution of more than five turnkey projects in both the Atlantic and Pacific Oceans,” said Jon Hopper, CEO of Xtera. “After having established a strong footprint in the Caribbean and Atlantic areas, we now want to focus more on the Pacific Ocean where we see considerable growth opportunities and a good fit for our subsea product and service line.”

Both Ocean Networks and Xtera will be present at the PTC’14 event (19-22 January 2014 – Honolulu, Hawaii, USA); those attending are invited to approach us to learn more about this new subsea cable system. Xtera Communications Inc. (Nasdaq: XCOM)

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