Friday, December 19, 2008

Internet cable cut---contribution to global financial crisis

On Friday December 19, it's reported that there is underwater internet cable cut near Egypt. These cables are the major internet and phone links between, Europe, Middle East and Asia. It's one of the biggest underwater internet cable that has been slashed.

Now you can get an idea how it will effect worldwide. User will face problem in connecting sites abroad. It will either take time to connect or may be unable to connect at all. Also people will experience problem while trying to contact their relatives or friend in Middle East, Asia and Europe.

Companies that totally depend on cable network for speedy and fast service will be effected badly. Today almost 95% companies (small and big companies), from manufacturing to marketing use internet and 100% uses phone service to communicate. If not totally, but up to a certain extent this incident will effect their business and can suffer a loss that was unpredictable. It means that it will add fuel to the fire of world financial crisis.

It will effect Asia the most, as India's booming outsourcing industry which provide a wide range of services from customer support to back end works to international clients over internet will be effected.

It's not the first time we are suffering internet outage. We experience the same problem earlier his year in February. That mean we got two shocks in the same year when already we were going through the crisis. It will continue as it could take days to repair the cables.

It's reported that the strong Taiwan quake cause this cable cut and total six cable are effected. It might take around 2 weeks to fix the cables.

Let’s hope for the best to bounce back to normal at the earliest.

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