Cinia and MegaFon sign MoU to set up a joint venture in the Arctic Sea
Cinia, the leading partner of the Cinia alliance, and MegaFon have today signed a Memorandum of Understanding (MoU) to set up a joint venture to prepare the build of a submarine telecommunications cable across the Arctic Sea, the company said in its release. The widely international project would create a completely new route to connect continents and also to fulfill connectivity requirements of the Arctic region. The Cinia alliance in this phase consists of Japanese and Nordic partners and an international investment bank. The main objective of the MoU is to establish the Development Company by Q4/2019.
The global economy increasingly depends on international networks and logistics systems. The Arctic cable will increase the redundancy of the global networks significantly by providing a totally new route.
The Arctic cable will offer the lowest-latency sea route between Europe and northern Asia thanks to the shortest geographical route and the most sophisticated technology.
“The Arctic cable will contribute to the socio-economic development of the Arctic areas. The cable is an environmentally sustainable way to boost global, regional and local economy. At the same time, the cable will connect three continents, covering approximately 85 per cent of the world’s population,” says Ari-Jussi Knaapila, CEO of Cinia.
"MegaFon is proud to join a major international infrastructure project that will not only connect several continents via the Arctic but also will benefit MegaFon as a leader of digital opportunities by enabling the development of network infrastructure for customers in the Arctic region and the Far East," commented Gevork Vermishyan, CEO of MegaFon.
Today the global submarine cable networks provide over 99 per cent of international telecommunications. The new 10,000 km of the Arctic route will offer an optimal combination of low latency, physical diversity and high network availability. Currently, the global network backbone is lacking an optical submarine cable that connects Europe, coastal regions of Russia, Japan and North America.
Cinia has already carried out the construction of 1,200 km of C-Lion1 submarine cable from Germany to Finland and has thus proven its ability to lead and execute demanding international submarine initiatives.
MegaFon has previous experience in the construction and operation of high-speed fibre optic cable networks in Russia and the neighbouring countries, with the total length of its own fibre optic cable network exceeding 200,000 km.
Cinia Ltd provides secure high-availability data network and software solutions. Cinia’s fibre optic network of roughly 15,000 kilometres, including the C-Lion1 submarine cable, enables the fastest data communications solutions to Central Europe and to markets in Asia and Eastern Europe.
PJSC MegaFon is an operator of digital opportunities that holds the leading position on the Russian telecommunications market. Today, MegaFon has the largest network of base stations in our country: 227,961 stations, including 87,611 stations in LTE standard. In 2018, the company provided services to over 76.9 million subscribers.
