Digital 9 Infrastructure today announced a £50m+ ($69.5m) investment into the development of a new intercontinental subsea cable and terrestrial fiber system, known as Europe Middle-East India Connect 1 (EMIC-1).

Europe Middle-East India Connect 1 (EMIC-1) – Digital 9 Infrastructure

Digital 9 Infrastructure’s new system will be a carrier-neutral network between Europe, the Middle East, and India comprising subsea and terrestrial fiber infrastructure which will connect key locations in these regions.

Digital 9 Infrastructure is investing £50m+ ($69.5m) over a three-year period, alongside a significant global content provider and consortium.

Operator

Aqua Comms, a subsea cable operator and portfolio company of Digital 9 Infrastructure, will market and operate this route under the name Europe Middle-East India Connect 1 (EMIC-1).

Portfolio

This project will add a further route to Digital 9 Infrastructure’s existing portfolio of subsea cable networks. Upon completion of the new Europe Middle-East India Connect 1 (EMIC-1) subsea cable system, Digital 9 Infrastructure will have an interest in 18.6k miles (30.0k kilometers) of subsea and terrestrial fiber networks, connecting four continents.

Pipeline

Digital 9 Infrastructure states that today’s announcement represents “one of the pipeline investments identified at IPO”. To this end, in Digital 9 Infrastructure’s previously outlined “longer term pipeline” the company noted two subsea cable networks which were both categorized as development and global. Indeed, these two investment opportunities had a total enterprise value of $350m and $700m, respectively.

Assuming that Digital 9 Infrastructure is participating in either of these two investment opportunities, this implies that the firm will be a minority investor in the Europe Middle-East India Connect 1 (EMIC-1) subsea cable, even at 60% leverage levels.

Subsea Cables – Connecting Europe, the Middle East, and India

Dgtl Infra identifies 9 subsea cables below that are existing or planned which connect countries in Europe, the Middle East, and India. Notably, some of the subsea cables outlined are approaching the end of their useful life and will be retired soon. Indeed, this creates an opportunity for Digital 9 Infrastructure’s higher-capacity Europe Middle-East India Connect 1 (EMIC-1) subsea cable.

Existing Subsea Cables

  • Asia Africa Europe-1 (AAE-1): 15.5k miles (25.0k kilometers), connecting France, Italy, and Greece with India (Mumbai) via the Middle East
  • Europe India Gateway (EIG): 9.3k miles (15.0k kilometers), connecting the UK, Portugal, and Monaco with India (Mumbai) via the Middle East
  • FLAG Europe-Asia (FEA): 17.0k miles (27.4k kilometers), connecting the UK, Spain, and Italy with India (Mumbai) via the Middle East
  • India-Middle East-Western Europe (I-ME-WE): 7.5k miles (12.1k kilometers), connecting France and Italy with India (Mumbai) via the Middle East
  • SeaMeWe-3: 20.0k miles (32.8k kilometers), with multiple points of connectivity overall, in Europe, the Middle East, and India
  • SeaMeWe-4: 11.7k miles (18.8k kilometers), with multiple points of connectivity overall, in Europe, the Middle East, and India

Planned Subsea Cables

  • Blue-Raman: will connect Italy with India (Mumbai) via the Middle East. Also, the backers of this subsea cable are Google, Oman Telecommunications (Omantel), and Telecom Italia Sparkle
  • India-Europe-Xpress (IEX): will connect France with India (Mumbai) and expects to be operational in 2023. Additionally, the backer of this subsea cable is Reliance Jio
  • Trans Europe Asia System (TEAS): 10.1k miles (16.2k kilometers), which will connect France and Italy with India (Mumbai). Also, the subsea cable expects to be operational in Q3 2023. Finally, the backers of this subsea cable are Cinturion Corp and Stonecourt Capital

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