A statement said Telebras plans to set up a joint venture company with Spain’s IslaLink Submarine Cables and investment funds to build and operate a Brazil-Europe cable at a cost of $185 million.
It said 55 percent of the joint venture will be under Brazilian control—with a 35 percent stake for Telebras and 20 percent for investment funds—while IslaLink will have a 45 percent stake.
Work on the project is expected to start in the second half of this year and the cable is expected to enter into service 18 months later, Telebras chief Francisco Ziober Filho told reporters.
Currently there are five undersea fiber optic cables linking Brazil with the outside world, four of them to the United States and only one to Europe.
A Telebras spokesman said the new cable will provide greater security for Brazilian telecommnications following reports that US and British electronic spy agencies have been tapping undersea fiber optic telecom cables that link Asia, the Middle East and Europe.
In November, Telebras signed a $560 million contract to deliver a satellite for secure communications, following months of outrage over revelations of US cyber-spying.
Read more at: Phys.org