A percentage sums up the issue. Today, more than 90% of the world’s Internet traffic circulates via submarine cables, laid on the bottom, several thousand meters below sea and ocean level. A veritable metallic spider web, which connects the different continents together, and whose market, from the production of cables to their installation and maintenance, is roughly shared between three companies: an American TE SubCom, a Japanese NEC and a French company Alcatel Submarine Networks, more commonly called (ASN).
Having fallen into the hands of the Finnish Nokia during the acquisition of Alcatel-Lucent in 2015, of which ASN was a subsidiary, the State has always kept a close eye on this French company. Also, when the Nordic company decided to separate from at least part of ASN, the French government quickly got involved in the discussions.
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**Interview with Industry Expert: The Future of Submarine Cable Networks and the French State’s Interest in ASN**
**Interviewer:** Today, we have the pleasure of speaking with Dr. Isabelle Renard, a telecommunications expert who has followed the submarine cable market closely. Dr. Renard, Nokia recently signed a put option agreement with the French State for the sale of Alcatel Submarine Networks (ASN) for EUR 350 million. What does this mean for the future of submarine cable networks?
**Dr. Renard:** Thank you for having me. This agreement underscores the strategic importance of submarine cables in our digital economy. With over 90% of global internet traffic flowing through these cables, having a national interest in ASN could enable France to strengthen its influence and security in this critical infrastructure.
**Interviewer:** Historically, ASN has been a significant player. How do you think the French government’s potential ownership will affect competition in the market, particularly against giants like TE SubCom and NEC?
**Dr. Renard:** The involvement of the French State could foster a more competitive environment. If the government invests in enhancing ASN’s capabilities, it could provide a much-needed boost to its market share, potentially disrupting the status quo. However, there are concerns about how this might impact innovation and pricing, given that it’s a state-owned enterprise.
**Interviewer:** That leads to an interesting debate. Some might argue that state involvement can lead to inefficiencies and bureaucracy. Do you think having the French State as a stakeholder could stifle competition rather than promote it?
**Dr. Renard:** That is indeed a critical concern. State involvement could lead to bureaucratic processes that may slow down decision-making and deter rapid innovation. On the flip side, the government’s backing could provide ASN with the stability and resources needed to compete against larger, private companies. It’s a double-edged sword that warrants a thoughtful discussion.
**Interviewer:** Speaking of discussion, how do you feel the public should view this growing trend of government involvement in tech sectors? Should we embrace it as a means of national security and innovation, or raise our guard against potential drawbacks?
**Dr. Renard:** That’s an essential question. I believe it’s crucial for the public to engage in this debate. While some government involvement can enhance national security and maintain competitive advantages in global markets, we must balance that with the need for a dynamic private sector capable of innovation. Ultimately, the way we frame this relationship will shape the future landscape of not just submarine networks, but possibly other tech sectors as well.
**Interviewer:** As always, it’s been enlightening to talk with you, Dr. Renard. It seems this issue could spark significant debate about the role of government in the digital economy.
**Dr. Renard:** Absolutely. It’s a conversation worth having, especially as the digital landscape continues to evolve. Thank you!
**Interviewer:** What do you, the readers, think about government involvement in critical tech industries like submarine cables? Is it a step toward enhanced security and competitiveness, or a risk of stifling innovation and efficiency? Let us know your thoughts!
