Winning Bizness Desk
Mumbai.The ongoing tensions involving the United States, Israel and Iran are now raising fears beyond energy markets, with experts warning of a possible global internet disruption. The Strait of Hormuz, already known as a key oil transit route, is emerging as a critical digital chokepoint. Any escalation in conflict could damage undersea internet cables running through the region, potentially slowing connectivity across countries, including India.
Undersea cables carry most of world’s data
Contrary to popular belief, the internet does not primarily run on satellites. Nearly 95 to 97 percent of global data is transmitted through fibre optic cables laid deep under oceans. Several major cable systems connecting India to Europe, Africa and West Asia pass close to the Hormuz route. These include key networks such as SEA-ME-WE, AAE-1 and EIG, making the region crucial for global digital communication.
Why India faces higher connectivity risks
India’s digital ecosystem depends heavily on international bandwidth routed through the Arabian Sea and Gulf region. Any damage to cables in this zone could have immediate consequences. Experts highlight the following risks:
- Data traffic may be diverted to longer Pacific routes
- Latency, or data travel time, is likely to increase
- Internet speeds could slow across platforms
- Video streaming and cloud services may face disruptions
Users may experience buffering on platforms like YouTube, Instagram and Netflix, along with unstable video calls and slower downloads.
Impact on IT sector and financial systems
India’s IT and outsourcing industry, valued at around 250 billion dollars, relies on seamless, low-latency connections with clients in the US and Europe. A cable disruption could affect service delivery and business continuity. Key concerns include:
- Risk of service agreement breaches and penalties
- Delays in financial transactions and remittances
- Slower operations on global banking systems like SWIFT
- Potential disruptions in high-frequency trading
Even a slight delay in milliseconds can trigger financial losses in sensitive sectors such as stock markets.
Complete internet shutdown unlikely but slowdown expected
Despite the risks, a total internet blackout remains unlikely. The internet is designed with redundancy, allowing traffic to be rerouted through alternative paths if one route fails. However, such rerouting comes at a cost. Increased load on backup routes can significantly reduce speed and efficiency, affecting both individuals and businesses worldwide.
Countries explore backup routes and alternatives
Governments, including India, are now investing in alternative connectivity solutions to reduce dependence on vulnerable routes. Options under consideration include:
- Satellite-based internet services such as Starlink
- New cable routes that bypass high-risk regions
- Strengthening regional digital infrastructure
While energy security remains a concern, the growing geopolitical tensions around Hormuz are now equally threatening the backbone of the global digital economy.
