On the Mix of Satellites and Cables in the Global Network

Comparative economics of satellites and submarine cables were established by studying eight countries where the foreign carrier was presumed to have a choice of either medium for extending its communications facilities. The conclusion is that both satellites and submarine cables are very profitable to the user. The differences in profitability of the two media are not very large, and in most cases favor satellites by a small margin. In general, the annual cost of cables is smaller, but satellites bring in more revenue. When clear economic advantages are absent, other criteria for choice will emerge. For operational reasons-flexibility, reliability, and avoidance of long time delay-a combination of satellite and cable connections is preferable and likely to continue.