This has prompted the industry to explore new route requirements and enhance network resiliency. The panel discussion, chaired by Carl Roberts, Partner at Hadaara Consulting, delved into the current state of route diversity, the viability of alternative routes, the impact of geopolitical factors, pricing competitiveness, and the potential improvements in cross-border connectivity.
Speakers
- Carl Roberts, Partner – HADAARA CONSULTING (moderator)
- Cengiz Oztelcan, CEO – GBI
- Enrico Bagnasco, CEO – Sparkle
- Mohamed Abbas, acting SVP international data business – e&
- Naveen Rajagopalan, CCO – Kalaam Telecom
- Abdullah Alghonaimi, VP wholesale operations – Mobily
The rising Importance of AI and localisation
Rajagopalan, chief commercial officer at Kalaam Telecom, emphasised the growing impact of AI on connectivity demands. “AI is such a strong word that has emerged in the last one to one and a half years. In fact, in the last couple of months, there has been a massive surge in discussions around AI,” he noted.
He identified two key aspects: the rise of data localisation due to AI-driven models and the increasing cross-border bandwidth demands. From a challenger operator’s perspective, he stressed the importance of network readiness and understanding the balance between local and international traffic requirements.
Roberts underscored the fundamental challenge of AI deployment, citing the laws of physics. “To have true full AI capability, you should never be more than 80km from the nearest data centre. If you believe that, then it informs your network deployment strategy,” he explained.
Mohamed Abbas, acting SVP of the international data business at e&, highlighted the scalability of the infrastructure to meet AI-driven demand. “By 2030, we might not have enough capacity to cater to the network advancements we foresee today,” he warned.
Reflecting on past challenges, he recalled, “During COVID-19, nobody anticipated the capacity surge needed for online education and virtualisation. Yet, telecom operators quickly reacted, activating nearly five terabits of capacity in under two months.”
He further elaborated on e&’s strategic initiatives, which include seven different projects aimed at enhancing route diversity to mitigate geopolitical risks, including alternatives through Saudi Arabia, Iraq, and even Iran.
The northern route and its strategic importance
The northern route through Iraq has been a focal point for industry discussions, particularly as an alternative to the Red Sea corridor. Roberts pointed out the increasing interest in the route, mentioning its variations such as the Silk Route and potential extensions through Syria and Iran.
Cengiz Oztelcan, CEO of GBI, provided a historical perspective on capacity growth, stating: “It started with streaming services, then came the cloud tsunami, and now AI, which promises to be an even larger wave.” He stressed the importance of investment to keep pace with demand, noting that GBI has long recognised Iraq’s potential as a critical transit route.
“We were part of the first deal in Iraq’s history to secure a dark fibre transit. Over the last decade, we have extensively worked on building this route, and now, with the Red Sea disruptions, the need for a solid alternative has never been more pressing.”
He also pointed out the “golden rule of three,” a requirement from hyperscalers for three independent routes to ensure network resiliency. “Iraq provides nearly 20% latency improvement over existing routes, and its economics are becoming increasingly competitive with the Red Sea corridor. We will continue to invest in its development.”
The viability and challenges of alternative routes
Enrico Bagnasco, CEO of Sparkle, reinforced the critical need for route diversity. “Diversity is as important as additional capacity,” he asserted. However, he cautioned that alternative routes present unique challenges. “The reason we have our current routes is that they are the most economically viable and tested. Pioneering new routes comes with cost and risk.”
He highlighted that most alternatives would be hybrid solutions, combining submarine and terrestrial segments. “Terrestrial routes differ significantly in reliability. They experience failures much more frequently than submarine cables and require faster repair times.
If we rely too much on terrestrial segments, we risk frequent service disruptions.” He also raised concerns about the cost and feasibility of constructing entirely new routes, particularly in politically sensitive regions.
Abdullah Alghonaimi, VP of wholesale operations at Mobily, echoed similar sentiments, stressing the need for collaboration among regional operators. “The Red Sea remains a major risk area, with interruptions not only affecting service continuity but also delaying new projects and necessary capacity expansions. We need alternative routes through multiple countries, such as Oman, UAE, and Saudi Arabia, to create new landing points in the Mediterranean.”
He further advocated for a multi-layered approach to operator collaboration, involving infrastructure investments, new operating models, and service softwarisation. “As Mobily, we have over seven cross-border touchpoints, and we are actively working with regional operators to enhance connectivity diversity. Recently, we launched the crossing grid project in collaboration with Egypt, further strengthening network resilience.”
Investment and the role of hyperscalers
Roberts raised the question of whether hyperscalers would increase their investment in the region if connectivity was made more seamless. Alghonaimi confirmed this, stating: “There is an undeniable demand. AI and hyperscaler growth are driving new investments.”
However, modernising infrastructure is essential to attract further engagement. Collaboration among operators can make costs more effective and enable shared infrastructure benefits.”
Abbas pointed out the role of software-defined networking in simplifying connectivity. “Imagine a Skyscanner-like platform for telecom operators. Instead of negotiating complex deals, hyperscalers should be able to log in, enter two locations, see available connectivity options, and provision a connection in minutes. This kind of automation is crucial for future scalability.”
Strengthening the digital ecosystem
The panellists agreed that tighter integration between telecom operators, hyperscalers, and software providers is necessary for building a robust digital ecosystem. Rajagopalan noted that regulators are becoming more engaged in cross-border connectivity.
“Regulators are showing increased interest in facilitating smoother international connectivity. In Kuwait, for example, regulatory support has been instrumental in advancing new connectivity initiatives.”
As Roberts summarised: “The industry is shifting towards a more meshed and interconnected network configuration to achieve low-latency, high-resiliency connectivity. The challenge now is to align investment, regulation, and collaboration to make these new routes viable.”
The discussion underscored that while the demand for connectivity continues to grow exponentially, the industry must address significant challenges in route diversity, investment feasibility, and collaboration.
The northern route through Iraq, hybrid terrestrial-subsea routes, and enhanced regional cooperation emerged as key strategies for strengthening Middle Eastern connectivity. Ultimately, to meet the rising demands of AI and hyperscaler expansion, the region must embrace both infrastructure modernisation and software-enabled service innovation.
