Portugal’s Meo bets big on Porto as new subsea cable hub

Portugal's Meo bets big on Porto as new subsea cable hub - Professional coverage

According to DCD, Portuguese telecommunications operator Meo has announced plans to develop a new submarine cable landing station in Porto, marking a significant infrastructure push in northern Portugal. The announcement came from CEO Ana Figueiredo during the Atlantic Convergence conference in Lisbon, though specific investment figures and timelines weren’t disclosed. Currently, Porto has zero existing subsea cable connections, with all of Portugal’s international cables landing further south around Lisbon. Meo is also expanding its network interconnection strategy, having recently invested €3 million in a 3,000 square meter ‘Carrier House’ facility in Linda a Velha that opened in 2023. The company aims to replicate this interconnection model in northern Portugal to support growing connectivity demands and position the country as an international data transit hub.

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The Northern Gamble

Here’s the thing about this announcement – it’s essentially a bet on future demand that doesn’t exist yet. Porto currently has no submarine cables, and here’s the kicker: no cables have actually been announced that plan to land there. So Meo is building infrastructure hoping the cables will come. That’s a classic chicken-and-egg problem in telecom infrastructure. They’re essentially saying “if you build it, they will come,” but in the highly competitive and capital-intensive world of subsea cables, that’s far from guaranteed.

And let’s talk about geography for a second. Lisbon has historically been Portugal’s connectivity hub for good reason – it’s closer to major European markets and has existing infrastructure. Porto would need to convince cable operators to take a longer, more expensive route. Basically, they’re asking international players to change decades of established routing patterns. That’s a tough sell when billions are at stake.

Expansion Amid Uncertainty

Meo’s strategy seems to be about replicating their Lisbon-area success up north. Their €3 million Carrier House facility that opened in 2023 represents a proven model they want to duplicate. But here’s what worries me – interconnection centers work because of density and proximity. You need multiple networks and providers in one place to create value. Can Porto generate that critical mass when all the action has historically been around Lisbon?

The timing is interesting too. We’re seeing increased competition in the subsea cable space globally, with some projects facing delays or funding issues. Is this really the moment to bet on a completely new landing location? I have to wonder if Meo knows something we don’t – maybe there are unannounced cable projects in the works that would make Porto strategically valuable.

Look, the ambition is commendable. Portugal does have strategic positioning between Europe, Africa, and the Americas. But transforming Porto into a connectivity hub requires more than just one company’s investment. It needs government support, international partnerships, and most importantly – actual cable systems committing to land there. Until we see those announcements, this feels like putting the cart before the horse.

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