Global Fiber-Optic Project
The Opportunity:Global Fiber-Optic Cable
Fiber-optic cable networks are the invisible force driving the modern internet, with many in recent years being funded by internet giants such as Facebook, Google, Microsoft and Amazon. They carry almost all our communications and yet -- in a world of wireless networking and smartphones -- we are barely aware that they exist.
As the internet has become more mobile and wireless, the amount of data traveling across undersea cables has increased exponentially.
Express Route BetweenEurope & Asia
The goal of our project is to connect Asia to Europe through a fully protected fiber-optical DWDM system using the shortest possible geographical route to ensure the lowest latency (packet Round-Trip-Time RTT). Low latency and RTT is the main requirement of modern telecommunication systems. The proposed project provides a significant route length and latency reduction compared to existing routes.
Why Fiber-Optic?
Romania to Armenia
Over 10 years ago, our team completed a similar project from Bulgaria to Georgia through the Black Sea. Now, we have determined that it is the best time to lay new infrastructure between Europe and Georgia, and beyond.
This phase Includes:
- Connection to existing European Terrestrial Routes in Europe From Deutsche Telekom;
- Connection in Georgia – Purchase of stations and legal connection with the E.U. and Georgia;
- 2 Black Sea Submarine Cables (Romania to Georgia) One cable to be completed and partially financed by Huawei Marine (China). The other by SubCom (USA);
- Terrestrial Routes in Georgia and Armenia Purchase of routes in existing infrastructure.
Iran & Qatar
Our company has a preliminary agreement with Ooredoo in Qatar for the installation of a submarine cable in the Persian Gulf for $48 million with a purchase of $15 million of traffic upfront. This is so that Qatar will have fast and reliable internet for the 2022 FIFA World Cup.
This phase Includes:
- Transit Terrestrial Routes in Iran Purchase of two fiber-optic cable routes in existing infrastructure in Iran;
- Persian Gulf Submarine Cable Underwater cable connecting Qatar to Iran;
- Connection in Iran & Qatar Legal connection of cables in each country.
China
Our company has a preliminary agreement with the top internet providers in India and China for the purchase of our high quality internet traffic. China has successfully built a new fiber-optic cable system between China and Pakistan via the China-Pakistan Economic Corridor (CPEC) and plans to connect to our system in Gwadar, Pakistan.
This phase Includes:
- Terrestrial Cable Between Iran & Qwadar, Pakistan;
- Purchase of network station and legal connection in Qwadar, Pakistan.
India
Once the main fiber optic system between Europe and China is completed, expansion will be made into India via Mumbai.
This phase Includes:
- Submarine Cable Between Iran & India (Mumbai) Underwater cable connecting Iran to India;
- Connection in Iran & India Legal connection of cables in each country.
Investment Opportunity
Our project has created an unique investment opportunity were we have made it possible to build a large fiber-optic cable system worth of more than 500M USD with an investment of 280M USD.
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Investment Highlights:
- The total cost of the fiber-optic cable system is approximately 280M USD.
- The estimated market cost of the system upon the completion of construction is more than 500M USD.
- By reaching the Indian and Chinese markets, we expect to hit an EBIDTA of 100M+ USD annually within 5-7 years.
- These types of fiber-optic systems sell for a standard multiplier of 10-15x EBITDA, however our region is expected to sell for a multiplier of 20-25x.
- The breakeven point for the investor is estimated at 4-5 years.
- Exit strategy - to sell the system to a large multinational telecommunications company in 5-7 years for a multiplier of 15-25x EBITDA or 1.5-2.5B USD.
Competitive Analysis
System Cost Projections
Projected Income & Expenses
Targeted Clients
