Submarine Cables Have Become Critical Infrastructure as Global Bandwidth Demand Surges
As emerging technologies and services such as 5G, the Internet of Things (IoT), Big Data, Cloud Computing Services, and Over-The-Top (OTT) media services continue to boom, the new era of Digital Economy is unfolding, following are the surging global demands for large-scale data transmission and cloud data centers, alongside the rapid growth of the international broadband network traffic. Since more than 95% of the global internet traffic relies on international submarine cables, the construction and investments in submarine cable systems turn out to be the key indicator of critical infrastructure in the 5G and digital development environment.
Meanwhile, the competition between the U.S. and China, along with the global Clean Network initiative, has profoundly influenced cloud infrastructure investment decisions among big techs, catalyzing the demand for bandwidth services in the Asia-Pacific region. Taiwan, situated at the center of the island chain of East Asia, encompasses an advantageous political stance, financial stability, economic development, moreover, a leading position within the IC manufacturing market compared to neighboring countries such as Vietnam, the Philippines, Indonesia, and Malaysia. To reinforce its strategic role in the Indo-Pacific Region, it is important to encourage multi-stakeholder participation in submarine cable infrastructure investments, thereby expanding digital market , and positioning Taiwan as the "data logistics hub ".
Seizing the Opportunity amid Geopolitical Competition to Position Taiwan as a Leading Asia-Pacific Digital Hub
The Executive Yuan has been promoting the "Advanced Network Infrastructure" project based on the "Digitalization" pillar of Smart Taiwan Program (2021-2025), composing of three main projects, the "Taiwan Fiber Optic Channel Project " executed by the Ministry of Transportation and Communications(MOTC), the " Submarine Cable and 5G Cloud Network Connectivity Center Construction Project " by the National Science and Technology Council(NSTC), and the "Future Development Policy and Security Protection of Submarine Cables and Networks Project" by the Ministry of Digital Affairs(moda). As a whole, the goals of "Advanced Network Infrastructure" project include, improving Taiwan's optical fiber channel, building up Submarine Cables and 5G Cloud Network Connectivity Center, and at the same time refining digital legislation, strengthening infrastructure security and resilience, in order to make Taiwan an important Asia-Pacific network service node.
Secure Digital Environment
- Refining Taiwan’s Legal and Regulatory Environment for Submarine Cable Management and Security
- Creating a Favorable Development Environment for the Submarine Cable, Cloud, and IDC Industries
- Constructing a Communication Resource Scheduling Simulation System to Establish a Comprehensive Network Topology, Commanding Taiwan’s External Communication Resources, and Effectively Planning Resource Allocation and Emergency Response Mechanisms
Taiwan Fiber-Optic Channel
- Completing the Fiber-Optic Channel from Bali to Fangshan
- Building the Fiber-Optic Channel via Taiwan High Speed Rail
Submarine Cable and 5G Cloud Network Connectivity Center
- Establishing an International Submarine Cable Connectivity Exchange Center
- Establishing a 5G Application Service Cloud Network Connectivity Center
Robust Public Sector Network and Cloud Infrastructure
- Building a Public Service Internet Exchange Center (hereinafter referred to as FOX)
- Optimizing Cloud Environment for Government Digital Services
- Building a CDN for Public Service(hereinafter referred to as TANet)
Internet traffic in the Asia-Pacific Region is Surging, Making it a Major Battleground for Bandwidth Services
To establish a robust digital legal framework and infrastructure security, moda promotes the "Future Development Policy and Security Protection of Submarine Cables and Networks Project." This project not only aims to achieve a safe and reliable international submarine cable development environment by optimizing the procedures for submarine cables establishment in Taiwan, but also reviews the development strategies of Taiwan's relevant industry chains in the Asia-Pacific region for further policy planning, gradually increasing risk awareness within Taiwan's submarine cable, cloud, and IDC industries. Furthermore, by fostering dialogues and collaborations, this project seeks to improve the efficiency of policy implementation that aligns with market needs. It aims to establish a thorough legislation environment for submarine cables, cultivate a favorable ICT industry ecosystem with fortified and secure network along with enhanced resource allocation mechanism; ultimately, to boost the development of submarine cables and the internet data center industries.