NTT America (news) [a subsidiary of NTT Communications (NYSE:NTT, news, filings)] has tossed its own hat into the low latency ring with new offerings connecting the Chicago and New York hubs with Tokyo. Powering the product is NTT’s purchase last year of the PC-1 cable system between the west coast and Japan, which is looking more strategic all the time. From what I hear, PC-1 still has the shortest path despite more recent cables having been laid in the past few years (still true?).
With transatlantic latency getting as much attention as it has lately, it was only a matter of time until the same thing happened on the transpacific routes. Like the other major low latency markets, Tokyo sees a lot of shares trade hands and has very sophisticated markets. Surely Hong Kong, Singapore, and Sydney will gain similar attention over the next year or two.
NTT is well positioned already in the rest of Asia and Australia. They also signed a deal with Australian provider Exetel, helping lower latency to Asia as well. However, whether the interest in such connectivity to and within Asia will translate into similar pricing and revenue to that on the Chicago-NY-London-Frankfurt financial corridor is still somewhat theoretical.
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Categories: ILECs, PTTs · Low Latency
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