Anticipating a jump in telephony demand during the 2008 Olympics, China Netcom is purchasing a fiberoptic submarine cable from NEC. The cable will run 350 kilometers from Qingdao to EAC-1, part of the 18,700-kiliometer ring that connects Japan, South Korea, Taiwan, and Singapore. Construction is to start during the third quarter of 2005, and will be in service by June 2006. Initial capacity will be 40Gbps, and can be upgraded to 1.28Tbps, according to NEC. The deal was reported to be worth US$24 million.