AI, geopolitics and sabotage are changing the subsea cable business fast. Operators now face higher demand and greater risk. They also need new financial models.
Brice Evin, CFO at FLAG, says the market has entered a new phase. FLAG runs one of the world’s largest privately owned subsea cable systems. Its roots go back to the 1990s, when it connected the UK and Japan.
The company now serves hyperscalers, telcos, media providers and enterprises. Its network reaches more than 180 countries. It links the US East Coast, Europe, the Gulf, Asia and the US West Coast.
However, the old model no longer fits current risks. Operators once relied on owned cable routes and limited backup paths. Today, customers need several routes between major regions. This helps them avoid disruption from cuts, conflict or political restrictions.
Evin says, “The industry is moving to an ecosystem of partnership so customers have access to multiple paths.”
This shift reflects hard realities. Ships and anchors still damage cables. Natural events also remain a threat. Yet deliberate sabotage has become a larger concern. The Middle East adds further pressure, as it hosts critical global routes.
At the same time, governments now treat subsea infrastructure as strategic. Many countries want more control over data, fibre and landing points. This can slow projects. It can also make cross-border planning more complex.
Partnerships may reduce these risks. They allow operators to build capacity with local and regional players. They also support faster deployment. Yet they require strong coordination and clear service ownership.
FLAG wants to retain that control. Evin says the company does not want to rely only on partners. Instead, it aims to own and manage end-to-end quality through shared projects.
This approach also changes funding. Anchor customers can support new routes before construction starts. Hyperscalers and media platforms often need capacity quickly. Their traffic forecasts can change within months.
That urgency differs from traditional telco demand. Large operators such as Vodafone usually have mature domestic traffic patterns. Content firms depend heavily on real-time advertising and low latency. So they often move faster on new routes.
AI has added another major force. Today, many AI requests still travel to US-based models. FLAG expects this pattern to spread globally. The company sees rising demand for edge data centres near cable landing points.
The Gulf could become especially important. It sits between Europe, Asia and Africa. New routes through Iraq, Turkey, Oman and Saudi Arabia may reduce dependency on older corridors.
India also matters. Its data traffic flows both east and west. Its population, IT sector and data centre plans create huge connectivity needs.
Satellite will remain part of the ecosystem. But Evin does not see it replacing subsea cables by 2030. Satellite supports local access well. Long-distance, high-capacity traffic still depends on fibre under the sea.
As Evin concludes, “Ultimately, as we get closer to ubiquitous communication, we won’t care what technology our communications run over so long as it’s affordable, reliable and of good enough quality.”
