GigNet Enters into Letter of Intent to Acquire Assets and Operations for Development and Completion of a Subsea Cable Between USA and Cancun, Mexico
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“GigNet-1” will be the first new fiber optic cable in over 20 years specifically designed to meet exploding demand for broadband capacity in the Mexican Caribbean
CANCUN, Mexico--(BUSINESS WIRE)-- GigNet, a Digital Infrastructure company with an extensive regional fiber-optic broadband network from Costa Mujeres, North of Cancun, through the Hotel Zone of Tulum, announced today it has entered into a Letter of Intent to acquire the assets, operations, and development to date for a subsea cable system between Florida and Cancun, Mexico from FB Submarine, LLC. Over the past three years, a significant amount of research, planning, and studies have been completed for what will be the first competitive subsea cable between the USA and Mexico in approximately 20 years. Over that period of time, and especially over the past two years, demand for secure broadband capacity for streaming, cloud services, data centers, social media, and other Internet applications and services have grown exponentially.
Development to date for the “GigNet-1” subsea cable has included completion of the Desktop Study, regulatory and permitting feasibility studies for each of Florida and Mexico, market demand and analysis studies, and selection and contracting of key suppliers for the system design, equipment, routing, and installation. A detailed Marine Route Survey (MRS) has commenced and is expected to be completed within the next 60 to 90 days, depending on weather and other conditions.
After thorough service provider evaluations, negotiations and contracting, Xtera has been selected to serve as the primary EPC contractor for the subsea cable. Xtera is an industry leader in subsea network deployments and will provide the subsea “wetplant” consisting of the fiber and amplifiers (repeaters), the submarine line terminals in Florida and Mexico, and will manage the installation. IT International Telecom, leading experts in subsea cable systems, have provided the desktop route survey and are conducting the marine route survey. In cooperation with Xtera, IT International Telecom will install the GigNet-1 cable system.
In Mexico, GigNet’s wholly-owned operating subsidiary GigNet S.A. de C.V. will provide access to the beach in Cancun and colocation in GigNet’s Cancun cable landing station. GigNet in Mexico operates an advanced fiber optic network in the Riviera Maya region serving the hospitality, enterprise, and planned development segments. GigNet will serve as a major tenant on the subsea cable system and will distribute IP transit and private line connectivity with GigNet-1 throughout the region.
Paul A. Moore, Chairman and CEO of GigNet, Inc., said, “When completed, we believe the subsea cable system combined with our existing terrestrial network in the Cancun region will position GigNet as the leading regional provider of secure, high quality Internet capacity between the USA and the Yucatan Peninsula. The operational benefits for our existing and future customers are without question, and we also believe GigNet-1 will be the capacity source of choice for major enterprises and telecommunications providers. The impact of this new source of advanced connectivity to the world on the economic development of the region will be transformational for the states of Quintana Roo and Yucatan.”
Terms of the transaction were not disclosed and closing is subject to final due diligence, finalization of terms and conditions, completion of an independent valuation analysis, and board approval, expected within the next 30 days.
Xtera is an innovative provider of subsea and telecoms technology. The company supplies both repeatered and unrepeatered systems, using its high-performance optical amplifiers to deliver traffic directly inland to cities and offering flexibility in working with industry partners to provide the optimum solution. Xtera has considerable expertise in the Caribbean region.
ABOUT IT International Telecom
International Telecom is a marine network installer offering desktop study, marine route survey, engineering and design, installation services and maintenance solutions for submarine cable industry worldwide. For 25 years IT has been recognized as one of the worlds’ finest marine system providers and are in a unique position to collaborate with customers for their technology solutions and partners. IT has extensive experience in the Caribbean region.
GigNet is the Mexican Caribbean brand of GigNet, Inc., a U.S. based international Digital Infrastructure company. Through its Mexico operating subsidiaries, GigNet, S.A. de C.V., and Sanalto Redes Peninsular, S.A.P.I. de C.V., the Company is a fully licensed telecommunications provider in Mexico. GigNet is actively adding customers to its extensive regional broadband network in the Mexican Caribbean, one of the largest and fastest growing tourism destinations in the world, with over 25 million annual airport visitors. GigNet is a leader in the digital transformation of the region.
For Corporate Information:
Contact: Diane Shearin
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