Submarine cables are an essential part of modern communications. Running across the ocean floor, these fiber-optic networks handle most international data traffic and support services such as communications, finance, and cloud computing. As demand for connectivity grows, the need for dependable and scalable subsea infrastructure continues to be a priority. But building these systems is far from straightforward. Financing a submarine cable ranks among the most challenging tasks in digital infrastructure: projects require a significant upfront investment, must navigate multiple jurisdictions, involve long payback periods, and often face geopolitical pressures and permit delays. Success depends not just on raising funds but on aligning strategies, proving technical readiness, coordinating diverse stakeholders, and understanding the shifting dynamics of global connectivity.
In this article, we explore the full lifecycle of submarine cable project financing, from concept to financial close, and unpack the key challenges and strategic levers sponsors must navigate to bring these critical assets to life.
Laying the Groundwork: What Makes a Project Bankable?
Before any meaningful financing discussions can begin, project sponsors must lay a solid foundation, including technical, commercial, legal, and strategic elements that collectively de-risk the investment and make the opportunity bankable. At the core lies a compelling business case. Sponsors must demonstrate that the proposed route serves a real and growing traffic demand corridor—whether connecting underserved regions, linking data center hubs, or providing redundancy for existing systems. Project justification involves detailed traffic forecasts, competitive analysis, and pricing models for capacity sales.
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ABOUT THE AUTHOR
Eckhard Bruckschen, Director of Undersea Cable Consultancy is a master mariner and MBA with more than 30 years of experience in the offshore submarine cable industry. His experience includes plough and trenching/ ROV operations; remedial works; installations of fiber optic, power, umbilical, and flexible pipes; and burial and bridge operations. Across his career, Bruckschen has managed the construction of over 40,000 kilometers of submarine fiber optic cables and 2,500 kilometers of submarine power cables.
Lynsey Thomas, Subsea Specialist with involvement in the international subsea business since 1995 and has directed LT consulting since 2018. She has a keen interest in corporate strategy development, network planning, project management, and solutions marketing. She is experienced as a customer, supplier, consultant, director, and trustee. Thomas has held senior positions in Cable &Wireless, Apollo SCS, Xtera, and SubSea Networks Ltd., and is a board member for Cirion Technologies. She holds a master’s degree in engineering science from the University of Oxford.
