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Undersea Fiber-Optic Cables to Cost Billions and Cut Latency between London and Tokyo by 60 Ms

Mar 21 2012, 2:00pm CDT | by , in News | Technology News

Undersea Fiber-Optic Cables to Cost Billions and Cut Latency between London and Tokyo by 60 Ms
Buy fiber-optic cable from Amazon Cyber Monday and Black Friday Now

All to save 60ms?!

Three new undersea cables are going to be run between London and Tokyo with the goal of reducing latency and adding more failover support. Two of the cables will run across the Northwest passage to the Canadian Arctic archipelago. The third cable will run along the coast of Scandinavia and Russia.

Latency between Tokyo and London today is about 230 ms, which is literally about the blink of an eye. Once the new cables are ran latency will be about 170 ms getting about 60 ms savings at a potential cost of $1.5 billion per cable ran. That seems like a huge expense for such a tiny savings, but apparently, when it comes to algorithmic stock market trading tiny savings in latency can add up to millions and millions of dollars saved.

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