Huawei Technology Co Ltd (002502) Is Building A Fiber-Optic Cable Between China and Pakistan [Report]

Posted Aug 15, 2013

Huawei Technology Co Ltd (SHE:002502) is working on building a fiber-optic cable that connects Pakistan and China, according to sources with the Associated Press of Pakistan (APP).  This connection will run between Pakistan’s borders near Khunjerab to Rawalpindi and will span a distance of about 820km (around 509.52 miles).  This project will reportedly cost around $44 million and will be completed within 2 years.

Pakistan currently connects to the Internet through a few undersea cables so this new connection will bring added redundancy, which will reduce Internet downtime and add security.  This project will reportedly stimulate trade and IT awareness in the region, which will generate economic opportunities.  The sources also noted that it will generate revenues of 1.5 billion rupees (US$24.3 million) in the first 3 years.

This past March, a fiber optic cable got cut in the Arabian Sea near Karachi.  This resulted in a 50% decrease in Internet speed in Pakistan.

[Source: ZDNet]