Competitive metro fiber operator abvt today launched a low latency transatlantic product aimed at the financial sectors. They are offering end to end connectivity between Slough, The City and Docklands in London, and various locations in Manhattan plus key facilities in Newark, Weehawken, Secaucus, Carteret, and Clifton. Each of those contains infrastructure key to the low latency trading market.
What’s rather interesting here is that Abovenet of course does not actually operate any transatlantic cables. They are leasing that leg just like almost anyone is – I wonder which one has the latency advantage? But Abovenet’s offering springs not from the transatlantic path itself which others could lease as well. Rather it comes from the metro fiber on each end, and not many providers have as much metro fiber depth in both New York and London as they do. That gives them optimization advantages in the on/off ramps.
That’s how the low latency battles are being fought right now – find a route on which you have an advantage, package it, and sell it before the traders move on to whatever comes next. How long will this low latency binge drive the market? Hmmm, hopefully long enough for the rest of the bandwidth sector to come roaring back.