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New submarine communications cable announced

CVC Acquisition Co. Limited announced yesterday that within a year <?xml:namespace prefix = st1 ns = “urn:schemas-microsoft-com:office:smarttags” />Iceland would be connected to its transatlantic submarine communications cable system Hibernia Atlantic.<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

Two more companies plan to connect Iceland to their network of submarine communications cables, E-Farice and Tele Greenland. According to Bladid daily, they have sped up their plans because of growing interest from companies like Yahoo and Microsoft to establish server farms in Iceland. The three cable systems in question should all be up and running in Iceland before the end of 2008.

Currently, Iceland is connected with Europe and America with two submarine communications cables, FARICE and CANTAT-3, but their capacity is not enough to meet the bandwidth demand of the potential server farms.

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