But this increasingly wireless world we live in is an illusion.
Every meme, every purchase, every crackpot WhatsApp forward that is magically beamed to and from devices that we still call phones for some reason, ultimately relies entirely on wires. Specifically, really, really, really long wires under the ocean, called subsea or submarine communication cables.
What are submarine cables?
These are fiber optic cables, thousands of kilometres long, that are laid on the ocean floor to connect countries and continents.
Typically less than an inch wide, they comprise a bunch of hair-width optical fibers that are covered in silicon gel. These are sheathed in everything from plastic to copper and even nylon to protect both the signal and the cable itself.
They are laid between countries and continents using specially modified ships. Closer to the shore, a special plow is also used to bury them under the seabed, which explains why you have never encountered one during a beach holiday.
The René Descartes, a cable layer ship operated by Orange Marine. Source: David Monniaux/Wikipedia
Wired vs wireless
iPhones and Androids may have changed the way we as individuals access the internet, and
This is reflected in the fact that these cables account for 99% of data that crosses oceans. The website Telegeography.com estimates there were 426 submarine cables in service around the world as of early 2021, and that 1.3 million kilometres of cables are currently in service globally. They’re all mapped out and searchable here.
According to Telegeography, “It’s hard to know exactly how much of all international traffic is carried via satellite, but it’s very small. Stats released by the US Federal Communications Commission indicate that satellites account for just 0.37% of all US international capacity.”
It says while satellites help reach areas that aren’t yet wired with fibre, and are also useful for sending content from one source to several locations, “on a bit-for-bit basis, there’s just no beating fiber optic cables. Cables can carry far more data at far less cost than satellites.”
Speed comparison: Satellites typically offer only 1,000 megabits per second and have high latency, which is the time it takes for data to travel between its source and destination. Google’s new Grace Hopper Cable on the other hand, which is finishing “installing” this week, will have a capacity of 340 terabits per second. This,
Who owns them?
Submarine cables were traditionally owned by telecom companies. The huge costs involved meant that even these behemoths would have to group together to pay for them and then share the bandwidth accordingly.
But in the past decade or so, a new type of company has come to dominate this market, among quite a lot else. Google,
Google currently has investments in 16 subsea cables, including its own and those it owns aspart of a part of a consortium. Earlier this week it finished laying its Grace Hopper cable, which stretches from New York to the UK and Spain. In June, it announced it was building one called Firmina that will run from the east coast of the US to Argentina, with landings in Brazil, Uruguay.
In March, Facebook announced it was investing in two undersea cables that will connect the US, Singapore and Indonesia. It said the two cables, Echo (which also has Google as an investor) and Bifrost, would increase trans-Pacific Ocean capacity by 70%. In May, it said it was building an underwater cable around Africa in partnership with China Mobile, MTN, Orange and Vodafone, to connect the continent with the Middle East and Europe. Dubbed ‘2Africa’, it will be 37,000 kilometres long and cost just under $1 billion.
Amazon is a part-owner of at least two cables and a major capacity buyer in three others.
Microsoft is part-owner of three cables and a major capacity buyer in two more.
Let’s move on to other big developments of the week.
OTHER BIG STORIES BY OUR REPORTERS
Flipkart on track for 50% jump in sales over 2020
Flipkart Group clocked a gross merchandise value of around $15 billion in calendar year 2020 and is currently on track to record a GMV of $23 billion this year, several sources told us. Of this estimated $23 billion, around $20 billion will be from its flagship platform while the rest will come from Myntra.
- Gross merchandise value, or GMV, represents the total sales on a particular marketplace over a certain time frame without deducting returns.
Context: This represents more than 50% growth over last year for Flipkart, even as the ecommerce sector remains mired in uncertainty over the rules meant to govern it. Flipkart’s last publicly known GMV before that was $7.5 billion in FY18, when it was acquired by Walmart for $16 billion.
Flipkart and Myntra vs Amazon India: Separately, a report from Bernstein showed Flipkart, excluding Myntra, had clocked a GMV of around $12.5 billion in calendar year 2020, while Myntra clocked $2 billion. The report said Amazon India clocked a GMV of around $11.5 billion in the same period.
For Flipkart, 49% of its gross sales in FY21 came from smartphones, while fashion contributed 32%, appliances 16% and groceries 3%, according to Bernstein.
Groceries: Flipkart is steadily building its online grocery play as demand for groceries and other essentials remains high amid the pandemic. While platforms like BigBasket, Grofers, Dunzo and Swiggy’s Instamart offer 30-minute delivery of essentials, Flipkart is scaling its 90-minute delivery offering, Quick.
Ajio is swiftly emerging as a challenger to Myntra
Almost half of the 30 top brands currently sold on Ajio are Reliance Retail’s private labels, which on many occasions have outsold top national and global brands on the ecommerce channel of the country’s largest retailer, sources said.
Reliance Retail’s private brands — Avaasa Mix N Match, Teamspirit, DNMX and Netplay — are four of the top five selling brands on Ajio this year. Puma was the only outside brand among the top five. The same brands formed the top five at Ajio’s Big Bold Sales in July.
What is the metaverse and why is everyone talking about it?
Popularised by ‘Snow Crash’, a 1992 sci-fi novel by Neal Stephenson, the metaverse refers to a collection of shared online worlds in which physical, augmented, and virtual reality converge.
People can hang out with friends, work, visit places, buy goods and services, and attend events. While many virtual worlds exist online, users currently can’t move between them. The eventual metaverse could solve this problem, turning disparate online worlds into a single, seamless entity.
Also Read: Metaverse riding on NFT boom, says owner of $69-million digital artwork
Tata Digital is set to launch a Nykaa rival
Tata Digital is finalising plans to launch a new ecommerce platform exclusively to sell beauty and cosmetics products, in direct competition to Nykaa, Purplle and MyGlamm. The online store will be separate from Tata CLiQ and existing ecommerce group verticals like Westside which sell cosmetics, beauty, apparel and lifestyle household products online.
Zomato cofounder Gaurav Gupta quits two months after IPO
Zomato cofounder Gaurav Gupta
Zomato cofounder Gaurav Gupta, who played a key role in the runup to the food delivery platform’s initial public offering (IPO) earlier this year, announced his resignation from the company that is weathering a series of changes following its stellar listing.
In recent weeks, the Gurugram-based company has shuttered its grocery delivery service, nutrition business as well as international subsidiaries in the US, UK, and Singapore.
Andreessen Horowitz in talks to make first India investment in CoinSwitch Kuber
Andreessen Horowitz is in talks to invest in CoinSwitch Kuber, a cryptocurrency platform for retail traders, people familiar with the matter said. If the deal goes through it will be the first bet by a16z—as the Silicon Valley venture capital firm is popularly known—in an Indian startup, sources told ET.
The capital infusion from a16z will be part of CoinSwitch Kuber’s new funding round, which will push its valuation to just under $2 billion, the sources said, making it a unicorn—startups with a valuation of $1 billion or more.
Amazon India looking for vendor partners to replace Cloudtail
Amazon India is scouting for vendor partners to replace Cloudtail India, one of the largest sellers on the platform which is ending its business in May after being the target of attacks for allegedly flouting India’s foreign investment rules. The online retailer is looking for companies owned and run by Indians, and preferably already in the ecommerce space, to put together a network of vendors, sources said.
Exchanges plan ad blitz for festival crypto gold rush
In this festive season, crypto exchanges will woo users to invest in bitcoin as an alternative to gold. To tap into the festive season that began with Ganesh Chaturthi on Friday, Indian crypto exchanges are ramping up hiring, and planning product launches and large-scale advertising campaigns to add new retail investors.
ETtech DEALS DIGEST
India’s startup ecosystem minted two new unicorns this week—one of them the youngest to enter the coveted billion-dollar valuation club. Meanwhile, the most-valued member of the club continued its buying spree. (read more)
■ Apna.co, a professional networking platform for blue- and grey-collar workers, has entered the unicorn club in 21 months—the fastest Indian startup to do so.
■ PharmEasy is finalising a $200-million primary funding round ahead of its IPO and is in talks with marquee investors from the US and Southeast Asia. Separately, it has acquired Aknamed in a largely stock deal worth about $180-$190 million.
■ Pine Labs has appointed Wall Street investment bankers Morgan Stanley and Goldman Sachs as advisors for its IPO in the US next year. Separately, it has secured $100 million from Invesco Developing Markets Fund.
■ Edtech startup Scaler Academy is in talks with existing investors Tiger Global and Sequoia Capital to raise $70-$100 million in a new funding round. “Tiger Global is likely to top up with a $50 million cheque, with existing investors bringing in the rest,” sources said.
That’s about it from us this week. Stay safe and get that jab. ????
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