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Brazil Markets

Brazil joins project connecting South America and Asia by fiber optics

By · May 13, 2021 · 2 min read

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RIO DE JANEIRO, BRAZIL –  A 14,000 km cable will connect Chile to Australia and New Zealand.

The Brazilian government today, May 13, joined the Chilean project to install a trans-oceanic underwater cable that will connect the South American continent to Asia and Oceania by means of fiber optics.

A 14,000 km cable will connect Chile to Australia and New Zealand. (Photo internet reproduction)
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Nicknamed the Humboldt Project, the initiative is under the responsibility of Chilean state-owned company Desarrollo País (former Fondo de Infraestructura), which will lead an alliance of interested countries and private technology and telecommunications companies.

According to the Chilean state-owned company, the 14,810 km long fiber-optic cable will physically connect Valparaiso to the city of Sydney, Australia, passing through Auckland, New Zealand.

According to Chilean Ambassador Fernando Schmidt, the plan is to leverage the connection with other fiber optic cables that currently cross Chilean territory to turn his country into a digital hub for all of Latin America, that is, a gateway to connect the entire region to Asia and Oceania.

“Chile is becoming a platform country, a natural vocation given our connection to the Pacific Ocean. And that is in line with our spirit of regional integration,” Schmidt said while participating this morning in a virtual seminar attended by Brazilian and Chilean authorities to discuss the initiative.

According to the state-owned company Desarrollo País, the Humboldt will create social and economic benefits for the entire region, improving and speeding up data transmission between Latin America and Asia, a continent of great economic significance.

According to the company, the route along which the underwater cable will pass was defined based on profitability studies that took into account the estimated increase in data traffic over the next 20 years, particularly with 5G technology.

For Brazil’s ambassador to Chile Paulo Roberto Soares Pacheco, the first underwater transoceanic fiber-optic digital route connecting the continents will reduce data transmission time, making digital communications more secure.

In addition to Brazil, Argentina, Australia and New Zealand have expressed interest in joining the project. Currently, Argentina, Brazil and Chile are responsible for 80% of internet traffic in South America.

In a statement, the Brazilian Ministry of Foreign Affairs added that by joining the initiative, Brazil will complete the fiber optic connection with its neighboring countries, thereby “consolidating the regional digital infrastructure.”

“In the coming months, technical teams from the countries involved will deepen discussions on the financial and technical terms of Brazil’s participation in this long-term project. The total investment volume of the project is estimated at around US$400 million, and the term of the public-private concession to operate it is estimated at 25 years,” said the Foreign Ministry.

Source: Agência Brasil

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