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Google, Asian Firms to Build FASTER Marine Internet Cable - Analyst Blog

Search giant Google Inc. ( GOOGL ) recently announced that it will collaborate with five Asian telecommunication companies in a bid to develop a high-speed underwater cable network between the U.S. and Asia.

The consortium will invest around $300 million to build the fiber-optic cable system, FASTER, on the Trans-Pacific route connecting the U.S. to Japan. As is evident from the name of the project, the network is projected to transfer data 10 million times faster than traditional cable modems and will have the capacity to transmit 60 terabits of data per second.

The latest project will help Google to further spread its reach and offer better user experience. Therefore, if successful, Google's latest move will bolster its customer base, which will ultimately translate into more revenues for the tech giant. Moreover, it will help it to develop a fast and reliable network infrastructure with extra bandwidth, which could benefit its other businesses including Android and Cloud.

This will be the third main Pacific cable project that Google has invested in. In 2008, Google had invested in a network to Japan. Three years later, it invested in a connection between Japan, Thailand and the Philippines.

This time Google will collaborate with China Telecom, China Mobile International, Malaysia's Global Transit, Japan's KDDI and Singapore's SingTel to help it carry out the project swiftly.

Google, the world's largest online search engine, is gradually strengthening its foothold in new markets.

Google shares currently carry a Zacks Rank #3 (Hold). Better-ranked stocks in the space include Baidu, Inc. ( BIDU ), Borderfree, Inc. ( BRDR ) and Facebook Inc. ( FB ). All these stocks carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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