So you have to separate the "wet" plant from the terminal gear. The speed of the terminal gear is completely disconnected from the wet plant these days. Nobody replaces wet plant to upgrade capacity. They run Ciena, Infinera, Alcatel gear over Tyco's old line system.
Essentially the issue with upgrading over the wet plant is basically the presence of nonlinearities on the fiber. The links are not noise limited. Some of these fibers are still running 10G OOK in half the band and that on NZ-DSF that's used for submarine cables basically causes huge nonlinear penalties. The new subsea fiber is 22ps/nm-km and essentially larger effective diameter for reducing nonlinear penalty.
http://www.corning.com/opticalfiber/products/vascade_fibers....
BTW, I also worked at BBN