Issue 26 May 2006 Submarine Telecoms Forum Is Published Bi-Monthly by WFN Strategies, L.L.C

Regional Systems

Issue 26 May 2006 Submarine Telecoms Forum is published bi-monthly by WFN Strategies, L.L.C. The publication may not be reproduced or transmitted in any form, in whole or in part, without the ExordiumWelcome to the May 2006, 26th issue of Submarine Telecoms Forum, our Regional permission of the publishers. Systems edition. Submarine Telecoms Forum is an independent com mercial publication, serving as a freely accessible forum for My original Scuba diving certification was accomplished some 30 plus years ago, and professionals in industries connected with submarine optical it wasn’t until recently that I decided to upgrade it to the next level. Not that I had any fibre technologies and techniques. extra time to burn; but it just seemed like the right time to “confirm” the skills I had been Liability: while every care is taken in preparation of this using for all those years. Anybody can dive the tropics, but only the fanatical few dive a publication, the publishers cannot be held responsible for the frigid Virginia quarry in April. accuracy of the information herein, or any errors which may occur in advertising or editorial content, or any consequence We have, once again, some excellent articles for you, the fanatical few of the telecoms arising from any errors or omissions. industry. The publisher cannot be held responsible for any views Alan Robinson discusses SubOptic 2007, as well as the future of Apollo and Gemini expressed by contributors, and the editor reserves the right cable systems. Georges Krebs gives his view of the evolving submarine cable market, to edit any advertising or editorial material submitted for publication. while Julian Rawle outlines potential trends for the Atlantic market. Douglas Burnett describes the importance of the UN Law of the Sea Convention to submarine cables, © WFN Strategies L.L.C., 2006 as Virginia Hoffman assesses logistics for regional system installations. Debra Brask

Contributions are welcomed. Please forward to the describes methods for improving time to market and reducing project risk. Jean Devos Managing Editor: Wayne F. Nielsen, WFN Strategies, returns with his ever-insightful observations, and of course, our ever popular “where in 19471 Youngs Cliff Road, Suite 100, Potomac Falls, the world are all those pesky cableships” is included as well. Virginia 20165, USA. Happy reading and remember rule #1 – Never hold you breath! Tel: +[1] 703 444-2527, Fax:+[1] 703 444-3047. Email: [email protected]

General Advertising Les Valentine Tel: +[1] 281 531 7417 Email: [email protected]

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Advertisers ContentsIssue No 26 Emails to the Editor 4 CTC 5-13 May 2006 NewsNow 5-13 Global Marine Systems 36 SubOptic 2007 Alan Robinson 16-17 Great Eastern 4 Nexans 15 A View of the Submarine Systems Supply Industry Georges Krebs 18-20 Mobius Group 37 The Importance of the United Nations Law of the Sea OFS 21 Convention to the Cable Industry Douglas R. Burnett 22-24 STF Advertising 2 Atlantic Tide Turning? Julian Rawle 25-27 STF Reprints 44 A Responsible Future Alan Robinson 28-29 WFNS 38 Project Logistics for Regional System Installations Virginia Hoffman 30-32 Improving Time-To-Market and Reducing Risk Before and During Project Implementation Debra Brask 33-35 Tracking the Cableships 39-44 Letter to a Friend Jean Devos 45 Upcoming Conferences 46

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[email protected] confidential résumé database at Direct Direct Placement Support Executive Search Confidential Reply Service �� [email protected] [email protected] �� Fontaine Lisa Managing Associate – Recruitment WFN Strategies, LLC [email protected] [+1] 410-268-2036

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Job seekers can forward CVRésumé to our A confidential servicespecialized for positionsthe supplyforcable sectors serving ofthe oil & submarinegas, telecoms and defense industries our website or Visit contact: Thank you for your Email your for you Thank to the cut short the and Forum. Telecoms Submarine this visited I briefly the and found website to be quite information interesting. BP For Brock, Bill Co Production America read a for great Thanks the though and even is down “way business plays”, the music where may that be, wherever a light is always there tunnel/ of the end at the cable. Esq. Mike Wiseman, on latest the work Good edition. NEXANS Les K. Valentine, Norway 6 China Telecom to transmit traffic directly between the US and China. This has enabled China Telecom to boost its business while reducing the carrier’s international operating costs. Wayne, China Netcom is also becoming more and more international. We have not attemptedExcellent to evaluate the differential growth in demandpublication on the three as routes that we examined.usual. In general termsKeep we up Thank you for your Email your for you Thank to the cut short the and Forum. Telecoms Submarine this visited I briefly the and found website to be quite information interesting. BP For Brock, Bill Co Production America read a for great Thanks the though and even is down “way business plays”, the music where may that be, wherever a light is always there tunnel/ of the end at the cable. Esq. Mike Wiseman, on latest the work Good edition. NEXANS Les K. Valentine, Norway would expect a continuationthe good of very work. high growth in traffic that is relatively RTD tolerant. Between AsiaRegards, and Europe the deployment of systems Drthat Tonyare less Trapp,tolerant to RTD is also likely to increase rapidly and Spectacular job putting Spectacular very this together...it’s impressive. J. Dr. Barattino, William Global Broadband LLC Solutions, The Engineering It was informative quite I do not and interesting. be will you that think such to provide willing services an information a for long of charge free time. Best regards, Sumio Sumitomo Yamano, & Ocean Development Co. Ltd. Engineering this should allow the low RTD route to Emails Emails to the Editor continue to command aBusiness premium, assuming Limited that the in-service performance proves to be exemplary. In order to maintain a premium price the “high quality” route needs to be high quality as perceived by the users. In the fifteenth and sixteenth centuries our forefathers founded the “silk routes” and “spice routes” between East and West. In the twenty-first century, carriers have to find the most profitable “routes” between Europe and Asia.

There is a choice of course. job putting Spectacular very this together...it’s impressive. Like J. Dr. Barattino, William the Global Broadband LLC Solutions, It It was informative quite I do not and interesting. be will you that think such to provide willing services an information a for long of charge free time. Best regards, Sumio Sumitomo Yamano, & Ocean Development Co. Ltd. Engineering explorers of old we can go West or East. We Emails Emails to the Editor have to decide what is the absolute right fit for our customers. Emails to 32 Thank you for your Email and the short cut to the Submarine Telecoms Forum. the Editor I briefly visited this website and found the information to be quite interesting. Spectacular job putting this together...it’s very Bill Brock, For BP impressive. America Production Co

Dr. William J. Barattino, Global Broadband Solutions, LLC Thanks for a great read and even though the business is “way down where the music plays”,

It was quite informative wherever that may be, and interesting. I do not there is always a light think that you will be at the end of the tunnel/ willing to provide such cable. an information services free of charge for a long Mike Wiseman, Esq. time.

Best regards, Good work on the latest edition. Sumio Yamano, Sumitomo Ocean Development & Les K. Valentine, NEXANS Engineering Co. Ltd. Norway Alcatel and Lucent Technologies Respond to Merger Talk Rumors

Alcatel and Lucent have released a joint statement regarding rumors of a merger between the two companies. A synopsis of current news items from NewsNow, the weekly news feed available on the Submarine Telecoms Forum website. www.subtelforum.com/NewsNow/2_april_2006.htm

AfrISPA Proposes New Approach to Stimulate Inter- Agreement Signed for Colombia-Venezuela Traffic Alcatel Sees Large-Scale Network Projects in Asia net Growth Pacific for 2007 Interlink Global Corp. has announced that an interconnection On 23 March 2006, at the keynote session of the Digital Africa agreement was signed in Medellin, Colombia between Interlink and Alcatel’s Asia-Pacific President Christian Reinaudo, addressing an Summit in the Arebella Sheraton Grand Hotel, Cape Town, the Internexa, a major telephone company in Colombia, South America. Asia Pacific reporter event in Sydney recently, said that the Asia African Internet Service Providers Association (AfrISPA) launched Pacific region’s telecommunications market is on the cusp of a new www.subtelforum.com/NewsNow/14_may_2006.htm their first position paper in a series that is focused on strategies for trend around network transformation. increased Internet growth. www.subtelforum.com/NewsNow/2_april_2006.htm www.subtelforum.com/NewsNow/2_april_2006.htm Alcatel and Columbus Communications Inaugurate FibraLink Alcatel to Supply Telenor “All-IP” Network through- AGA Signs Major Nordic Agreement with Telenor Alcatel and Columbus Communications Inc., inaugurated a new out Scandinavia submarine optical cable network, FibraLink, in Kingston, Jamaica. Gas supplier AGA has chosen Telenor to be its total supplier Alcatel has announced that it has signed an agreement with www.subtelforum.com/NewsNow/9_april_2006.htm of telephony services for the company’s operations in Norway, Telenor, Norway’s leading telecommunications service provider, Sweden, Denmark and Finland. to supply Alcatel’s next generation IP broadband services access platform, supporting Telenor’s “All IP” network strategy. www.subtelforum.com/NewsNow/7_may_2006.htm www.subtelforum.com/NewsNow/19_march_2006.htm

Southern Caribbean Fiber SAS has announced that it has received five responses to the Request For Proposal & Quotation process for a new submarine cable system in the Eastern Caribbean.

www.subtelforum.com/NewsNow/7_may_2006.htm Alcatel, Lucent File Statement for Proposed AT&T Wins Defense Department Contract Merger AT&T Government Solutions has been awarded orders totaling Brasil Telecom/GlobeNet Select tel(x) as Interna- Following the announcement on April 2, 2006, of their proposed $8.2 million to provide 36 secure, high-capacity circuits to the merger transaction, Alcatel and Lucent Technologies has Defense Information Systems Agency (DISA), which oversees the tional Gateway announced the filing of a Registration Statement with the U.S. Department of Defense’s networking needs. Securities and Exchange Commission (SEC). tel(x), the owner and operator of two of North America’s premier www.subtelforum.com/NewsNow/2_april_2006.htm core interconnection facilities, has announced that Brasil Telecom www.subtelforum.com/NewsNow/7_may_2006.htm of America, Inc./GlobeNet, an international carrier’s carrier linking North and South America, has selected tel(x) as its New York international gateway. AT&T Wins Department of Defense Contract Asia Netcom to Provide Internet Service for ICANN www.subtelforum.com/NewsNow/19_march_2006.htm AT&T Government Solutions has been awarded a contract valued Conference at $95.4 million over three years to supply circuits and manage network bandwidth for the Defense Information Systems Network. Asia Netcom, in partnership with FX Networks, an Internet Service Broadwing, HGC Launch New Transpacific Inter-car- Provider, announced its joint sponsorship of the ICANN (Internet www.subtelforum.com/NewsNow/19_march_2006.htm Corporation for Assigned Names and Numbers) conference in rier Ethernet Network over VPLS Wellington, New Zealand. Broadwing Communications, LLC, a consolidated subsidiary of www.subtelforum.com/NewsNow/2_april_2006.htm Batelco Launches Data Center Broadwing Corporation, and Hutchison Global Communications Limited (HGC), a wholly owned subsidiary of Hutchison Batelco has announced the launch of INFORT, a world-class Data Telecommunications International Limited, has announced the joint Center powered by Arabian Network Information Services. establishment of a new inter-carrier international Ethernet network.

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CTC Communications and Choice One Communications, which on February 10, 2006, announced their agreement to merge, have announced they are jointly acquiring Conversent Communications, Inc., an integrated communications provider with significant facilities and customers in the Northeast as well as in West Virginia. C&W, TI Sparkle Team Up to Offer Enhanced Inter- COLT Wins Hotel Industry Contract www.subtelforum.com/NewsNow/2_april_2006.htm national MPLS Services COLT, a leading European provider of business communications, Cable & Wireless (C&W) and Telecom Italia Sparkle, a wholly has announced a three-year contract with iBAHN, global broadband owned subsidiary of Telecom Italia focused on international specialists to the hotel industry, which will boost the performance Dhiraagu Signs Agreements For Maldives-Sri Lanka of its network across Europe. iBAHN is moving to an Ethernet- services, have announced that they are to interconnect their Cable multi-protocol label switching (MPLS) networks to offer enhanced based service to take advantage of the flexibility, simplicity and cost services to their carrier customers. effective benefits that the latest developments in Ethernet bring to wide area networking. Maldives national carrier Dhiraagu has announced that it has signed a Construction and Maintenance agreement with Sri Lanka www.subtelforum.com/NewsNow/2_april_2006.htm www.subtelforum.com/NewsNow/7_may_2006.htm Telecom for operating a new international submarine cable system between Sri Lanka and the Maldives at a ceremony held recently at Nasandhura Palace Hotel. COLT Adds New Data Protection Services Con Edison Completes Sale of Telecommunications www.subtelforum.com/NewsNow/14_may_2006.htm COLT, a leading European provider of business communications, Unit to RCN Corporation has launched Managed Storage and Managed Server Backup, the first in a range of new data protection services designed to help Consolidated Edison, Inc. (Con Edison) has announced that EAC Upgrade Completed businesses reduce the risk of data loss and downtime and the it has sold Con Edison Communications, its wholly owned continually rising costs of storage management. telecommunications subsidiary, to RCN Corporation. Cash Asia Netcom has completed a major network upgrade that will proceeds from the transaction are $32 million, plus approximately bring a 50% increase in lit capacity to its pan-Asia submarine cable www.subtelforum.com/NewsNow/2_april_2006.htm $7 million in other adjustments. An agreement of sale with RCN systems, EAC. was reached last December. www.subtelforum.com/NewsNow/25_march_2006.htm www.subtelforum.com/NewsNow/25_march_2006.htm

Columbus Communications Inc, owner of the company New World Network which operates the ARCOS (America’s Region Caribbean Optical-ring System) Network, announced the signature of a contract with the Empresa de Telecomunicaciones de Bogotá (ETB) to increase its bandwidth and Internet capabilities in order to cover its customer needs in an efficient and effective manner. EASSy Consortium to Close Consortium in May EB Wins Pipe Handling Deck Spread Contract www.subtelforum.com/NewsNow/16_april_2006.htm According to a report in the New Vision newspaper, based in A contract to design and supply a new pipeline handling system Kampala, Uganda, the EASSy consortium has told potential buyers for its latest pipelay vessel ‘Audacia’ has been awarded to The that the opportunity to invest in the project will close in May. Engineering Business (EB) by the Sociéte de l’ Exploitation du Audacia S.A. The awarding company is a sister company of FibraLink Submarine Fiber Network Ready for www.subtelforum.com/NewsNow/19_march_2006.htm Allseas Group S.A. in Châtel-Saint-Denis, Switzerland. Service www.subtelforum.com/NewsNow/25_march_2006.htm FibraLink Jamaica Limited has announced that its submarine fiber EASSy Debate Continues optic network is ready for service. The debate over the future of the EASSy East African submarine Equant Wins Contract for 48-Country Network www.subtelforum.com/NewsNow/9_april_2006.htm cable project has reached a new level of activity following last week’s announcement by the Kenyan government that it Equant has signed an outsourcing contract with Universal Music would build its own cable separate from the EASSy cable. The Group (UMG), the world’s leading music company, to transform FLAG Announces the Appointment of Punit Garg as announcement has prompted a spate of headlines featuring words its current network into a fully managed IP solution. The five- like “chaos,” “threats,” and “clashes.” year deal, spanning 48 countries, covers all elements of UMG’s its New President communications. www.subtelforum.com/NewsNow/7_may_2006.htm FLAG Telecom has announced the appointment of Punit Garg as its www.subtelforum.com/NewsNow/2_april_2006.htm new head in place of Patrick Gallagher.

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Global Crossing has announced that it is providing fully managed IP VPN services for Odebrecht Engineering & Construction, Brazil’s largest services exporter and Latin America’s largest engineering and construction company. Gateway Expands Network across 30 African Coun- Global Crossing to Extend Submarine Network to www.subtelforum.com/NewsNow/19_march_2006.htm tries Costa Rica

Gateway Communications has completed its $1.4 million upgrade At a signing ceremony on May 4 hosted by Costa Rica’s Instituto and expansion of its international long distance network. Costarricense de Electricidad (ICE), the state-run entity responsible Global Marine Joint Venture Partners Complete for the nation’s telecommunications, and the national Internet www.subtelforum.com/NewsNow/7_may_2006.htm Service Provider Radiográfica Costarricense S.A. (RACSA), Global Installation of Segment 2 of Jasuka Crossing announced plans to extend its core network to Costa Global Marine Systems Limited has announced that its Asian joint Rica. venture partners, NTT World Engineering Marine (NTTWEM) and S.B Submarine Systems (SBSS), have successfully completed the Global Crossing Announces New Colocation Service www.subtelforum.com/NewsNow/7_may_2006.htm cable installation of Segment 2 of the Jasuka project in Indonesia. In response to growing enterprise demand for IP services, Global Crossing has announced Global Crossing Colocation OnSite- www.subtelforum.com/NewsNow/9_april_2006.htm Assist, which enables customers to enter new markets and roll out Global Crossing Touts Services to Lawyers converged IP services, while reducing their operating expenses as they expand. Global Crossing has announced that more than 200 of the world’s leading law firms utilize its collaboration portfolio, which includes Global Marine Sample Charts Now Online www.subtelforum.com/NewsNow/25_march_2006.htm attended and reservationless audio conferencing services, Global Marine is showcasing its new submarine cable charting Web meeting tools, integrated audio and Web solutions, and IP services on its website. videoconferencing. www.subtelforum.com/NewsNow/2_april_2006.htm www.subtelforum.com/NewsNow/7_may_2006.htm

Internet Initiative Japan, Inc. (IIJ), one of Japan’s leading Internet access and comprehensive network solutions providers, has announced the June 2006 release of IIJ Managed VPN Pro, a new Internet-based VPN service that will offer a high level of flexibility through use of IIJ’s SEIL routers.

Group Organizes Opposition to “Closed” EASSy Hibernia Atlantic, RCN Sign Transatlantic Agree- www.subtelforum.com/NewsNow/7_may_2006.htm ment The Association for Progressive Communications (APC) is taking a leading role in efforts to make sure that the East African EASSy Hibernia Atlantic and RCN Business Solutions have announced that Interoute Launches Secure Corporate VoIP Service submarine cable project is open and affordable. they will work together as preferred partners to deliver and receive transatlantic bandwidth into the Boston and New York enterprise Interoute, owner of a pan-European next-generation voice and www.subtelforum.com/NewsNow/16_april_2006.htm markets. data network, has announced the launch of iSip, the first genuinely secure corporate VoIP service for business. www.subtelforum.com/NewsNow/25_march_2006.htm Hibernia Atlantic Announces New Customers www.subtelforum.com/NewsNow/2_april_2006.htm

Hibernia Atlantic has announced that it has continued its IDA Engages the Private Sector on Singapore’s Next “unprecedented” growth for a transatlantic cable, adding new Interoute Wins Contract for MPLS Network customers on a weekly basis. Generation Infrastructure Capio, the leading private healthcare company in Europe with Following the parliamentary announcement on 3 March 2006 by Dr www.subtelforum.com/NewsNow/7_may_2006.htm hospitals, smaller clinics and doctors’ surgeries in Sweden, Lee Boon Yang, Minister for Information Communications and the Denmark, Norway, Finland, France, Spain, Portugal and the UK, Arts, to deploy a Next Generation National Infocomm Infrastructure has selected Interoute to provide them with a pan-European MPLS (Next Gen NII), the Infocomm Development Authority (IDA) has based network. launched a Call-For-Collaboration (CFC) for its Wireless Broadband Network (WBN). www.subtelforum.com/NewsNow/7_may_2006.htm www.subtelforum.com/NewsNow/19_march_2006.htm

Maxcom Telecomunicaciones, S.A. de C.V., a facilities-based telecommunications provider (CLEC) using a “smart build” approach to focus on micro, small- and medium-sized businesses and residential customers, announced that it has reached an agreement in principle, subject to certain regulatory approvals, to acquire Grupo Telereunion. Investors Poised to Buy Asia Netcom Level 3 Completes Progress Acquisition www.subtelforum.com/NewsNow/19_march_2006.htm

According to several published reports, Simon Murray’s General Level 3 Communications, Inc. has announced that it has com- Enterprise Management Services Ltd, Spinnaker Capital Group and pleted its acquisition of all of the membership interests of Progress Ashmore Investment Management have reached an agreement Telecom, LLC, a regional wholesale network services company New World Network Completes Multi-million Dollar with China Netcom to acquire its international undersea cable unit, based in St. Petersburg, Florida. Network Upgrade Asia Netcom, for US$350 or US$354 million, depending on the report. www.subtelforum.com/NewsNow/25_march_2006.htm New World Network, the principal owner of the Americas Region Caribbean Optical-ring System (ARCOS), has announced that www.subtelforum.com/NewsNow/16_april_2006.htm it has successfully completed a multi-million dollar network Lucent to Provide Maintenance Services to Hanaro expansion. www.subtelforum.com/NewsNow/25_march_2006.htm KPN Issues EUR 1.25 Billion of Bonds Lucent Technologies has announced that Hanaro Telecom, Korea’s second largest wireline and broadband service provider, has KPN has successfully launched a dual-tranche Euro and Sterling selected Lucent as the single point of contact for all of the multi- transaction with an aggregate amount of EUR 1.25 billion, vendor maintenance for its nationwide network. Optically Modulated MEMS Scanning Endoscope consisting of a 850 million Euro tranche with a maturity of seven years and a coupon of 4.50%, and a 275 million Sterling tranche www.subtelforum.com/NewsNow/2_april_2006.htm Santec, a leading manufacturer of optical components and test (approximately EUR 400 million) with a maturity of ten years and a instruments for the fiber optics industry, announces a novel type of coupon of 5.75%. endoscope based on a low voltage MEMS scanner.

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Alcatel has announced the two-year renewal of its existing supply agreement with T-Com, the broadband/fixed line business division of Deutsche Telekom, for multi-service transport networks.

www.subtelforum.com/NewsNow/7_may_2006.htm PRIMUS Telecommunications ‘Global Managed Pre- Russian Carrier Building Out Fiber Network paid Platform Services’ Golden Telecom, Inc., a leading independent provider of integrated TelCove Expands Fiber Optic Network Infrastructure telecommunication services operating in Russia and other countries In a separate announcement, PRIMUS announced the launch of its in Florida “Global Managed Prepaid Platform Services” targeted for carriers of the Commonwealth of Independent States (CIS), has announced and distributors of prepaid card services around the world. that it has completed construction and started operation of its fiber- optic communications line (FOCL) between Moscow and Nizhny TelCove, a leading provider of business critical telecommunications Novgorod. services to enterprise customers, carriers, and government www.subtelforum.com/NewsNow/7_may_2006.htm organizations, today announced growing regional business www.subtelforum.com/NewsNow/19_march_2006.htm demand for its Internet, data and voice solutions in Miami, Florida, particularly among medium to large enterprises looking for a PRIMUS to Sell Its Interest in India Subsidiary statewide service provider. www.subtelforum.com/NewsNow/16_april_2006.htm PRIMUS Telecommunications Group, Incorporated has announced Starcomms Wants to Become Nigeria’s Third Na- that it and related entities have entered into a Share Purchase tional Operator Agreement (SPA) with Videsh Sanchar Nigam Limited (VSNL), a leading international telecommunications company and member of Starcomms Limited, a Private Telecommunications Operator (PTO), Telekom Malaysia Buys Indian Carrier the TATA Group, whereby VSNL will purchase 100% of the stock has applied to the Nigerian Communications Commission (NCC) to of Direct Internet Limited (DIL), whose wholly-owned subsidiary, become the country’s third national carrier. Telekom Malaysia Berhad (TM) has secured a critical piece in Primus Telecommunications India Limited (PTIL), is primarily its regional footprint, with the acquisition a 49% stake in Spice engaged in providing fixed broadband wireless internet services to www.subtelforum.com/NewsNow/16_april_2006.htm Communications Private Limited of India for a consideration of enterprise and retail customers in India. US$178.85 million.

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Virgin Radio, the UK’s only national commercial rock and pop music station, telx, the premier operator of telecom “meet-me” network interconnection facilities, and Hibernia Atlantic, the only diverse trans-Atlantic transport provider, have announced that Virgin Radio has selected Hibernia Atlantic’s network to provide three different Telenor Looks to Acquire 100% of Swedish Broadband Provider Telstra’s US Unit Names New President cable routes with Gigabit Ethernet services across the Atlantic and within the UK and New York City, including a direct connection to Telenor has increased its ownership interest in Swedish broadband Telstra Incorporated, the U.S. subsidiary of Australian global carrier, telx, New York City’s most network-dense interconnection facility. provider Glocalnet to 50.1 percent. At the same time an offer was Telstra Corporation Limited, has announced the appointment of its made for all outstanding shares in the company. new President, Mr. Andrew Morawski. www.subtelforum.com/NewsNow/2_april_2006.htm www.subtelforum.com/NewsNow/19_march_2006.htm www.subtelforum.com/NewsNow/19_march_2006.htm

WFN Strategies Establishes Strategic Alliance with TeliaSonera Delivers 622 Mbps Connection from Tyco Telecommunication Awarded Contract To MMG Europe over Russia to China Perform Second Upgrade On Telefonica’s South WFN Strategies, a provider of telecoms engineering services American Undersea Fiber Optic Network for terrestrial and submarine systems, recently announced the TeliaSonera International Carrier has signed an agreement with establishment of a strategic alliance with Marine Management DANTE for the TEIN2 network. The agreement enables Asian Telefonica International Wholesale Services and Tyco Group of the UK. scientists to be connected with a new 622 Mbps high-speed fiber Telecommunications have signed a contract for a network upgrade link from China to Europe, via Russia. of Telefonica’s undersea fiber optic ring network that connects www.subtelforum.com/NewsNow/14_may_2006.htm Central, North, and South America. www.subtelforum.com/NewsNow/16_april_2006.htm www.subtelforum.com/NewsNow/19_march_2006.htm

TNZ Moves to Next Generation Broadband

Telecom New Zealand (TNZ) announced that it would be rolling out the next generation of broadband technology.

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CTC Marine Projects Ltd. Cutting Edge Cable Capability Across the World Coniscliffe House, Coniscliffe Road, Darlington, DL3 7EE, England Tel: +44 (0) 1325 390 500 Fax: +44 (0) 1325 390 555 Email: [email protected] INSTALLATION BURIAL MAINTENANCE Web: www.ctcmarine.com ince 2001, Submarine Telecoms Website Banners Forum has been the platform for Post your web linked banner to the home Sdiscourse on submarine telecom page, as well as News-Now sections of the cable and network operations. Industry Submarine Telecoms Forum website, where professionals provide editorial content some 5000+ readers can come as often as from their own niche and focus. every week to view the latest news feed, or Each bi-monthly edition includes our bi-monthly magazine. commentary and information on system and service provision, and issues critical Rates US$ 3 Months 6 Months 12 Months to the industry. Home Page 540 900 1,440

News-Now Page 810 1,350 2,160 Advertising Rates Both 1,216 2,026 3,240 Magazine pages Rates US$ 1x 2x 3x 4x 5x 6x Feature Section Sponsorship Page 1613 1564 1516 1468 1419 1371 Available at full-page advertisement rate, section sponsors 2/3 page 1189 1154 1118 1082 1047 1011 are identified with a banner (link) at the beginning and end 1/3 page 768 744 721 698 675 652 of the featured section. All advertising rates as at December 2003.

Advertising enquiries Tel: [+1] (281) 531 7417 Fax: [+1] (281) 531 7456 [email protected] Submarine TelecomsFORUM 500 m

At submarine depths, goes deeper

Nexans was the first For further information, contact: Nexans Norway AS to manufacture and Telecom: P.O Box 6450 Etterstad, Vegard Larsen N-0605, Oslo Norway install 384 fiber Tel: + 47 22 88 62 21 Tel: + 47 22 88 61 00 submarine cable.Nexans E-mail: vegard-briggar. Fax: + 47 22 88 61 01 has qualified and [email protected] US Contact: installed their URC-1 Oil & Gas: Les Valentine Jon Seip Tel. +1 281 578 6900 cable family for fiber Tel: +47 22 88 66 22 Fax: +1 281 578 6991 counts up to 384 fibers. E-mail: [email protected] E-mail: [email protected]

1500 m exans Global expert in cables and cabling systems

41 such an important element of every SubOptic. And finally, Inner Harbour is a safe area. It has been developed as one of the leading SubOptic 2007 tourist attractions on the North East Coast and has the wonderful benefit to be a short ride By from Washington D.C, which has limitless Alan Robinson, President of SubOptic 2007 galleries, museums, and exhibitions. In short, Baltimore is “the” conference venue.

SubOptic held its first conference in Versailles We are now just one year away from the feedback after Monaco and tried to develop in France in 1986. It was the brainchild launch of SubOptic 2007 to be held at the a more compact and cost effective event, in a of Jean Devos, Jean Godeluck and the late Inner Harbour in Baltimore, Maryland, USA. marine environment, but with good facilities, Emanuel Blanc, all of Submarcom. Its Under the careful hosting of Tyco, plans are access and transport. Baltimore is on the formula is one of simplicity – “by the industry now well advanced for the conference and Patapsco River just off Chesapeake Bay. It is and for the industry”. It is a non profit exhibition. serviced by three airports, namely Baltimore organisation, and the conference is hosted International, Ronald Reagan Washington by a member of the Executive Committee The event will be from 14th to 17th May 2007 National and Dulles International. It has good on a three (used to be four) year rotational and will be held at the Baltimore Marriott railway connections to Washington and along basis. The host is responsible for the Waterfront Hotel with accommodation, the East Coast of the USA. It is renowned for conference venue, organisation, programme exhibition, hospitality rooms and conference its rich history and strong maritime character and accommodation. The key element facilities all under one roof. To ensure we offering some of the finest restaurants and of the host’s capability is the Programme maintain tradition, Baltimore has a number of gastronomic delights, including the world Committee which is chaired by a member Irish pubs, but in keeping with a centralised famous, succulent sweet crab and fresh of their organisation and is responsible for venue, we have made sure that the James seafood. In short, it is an ideal conference the entire content of the conference agenda. Joyce hostelry is just around the corner from venue with every attribute for a community Dave Robles of Tyco, who is based in their the hotel entrance! that relies upon getting together every three Madrid office, has this privilege for 2007. years to exchange ideas and information and The key ingredients are, of course, the papers Since we announced SubOptic 2007 at debate issues. And at the end of every full (submitted under six allied content headings), Monaco, I have had, and heard, a number day, there will be a range of social events the “round table” debates and of course the of questions concerning Baltimore. Why and functions designed to stimulate the key note speakers. A crucial element of Baltimore…….? Well, we took your professional and social networks which are the programme is the poster session, which

16 allows presenters and their audience the more One of the most interesting facts about open competition has seen the emergence informal opportunity to discuss, debate and SubOptic through the years is that, no matter of a brand new network owner (the carrier’s inform upon a particular specialist subject, whether the industry is on a high or a low, carrier) with the telco taking a decreasing role without the rigidity of a paper presentation we receive roughly the same number of in infrastructure financing and development. which is timed and overseen by a session abstract submissions. The credit for this SubOptic has to attract and give benefit to all chairman. This programme is underpinned goes to you, everyday members of our the participants of that changing market. I by an exhibition and a full social programme, industry. SubOptic is not just a conference can assure you that we will do this and you including a programme for partners, to for the senior members of our community, or can follow developments of the programme, encourage and maximise the opportunity to consultants, or learned members of research call for papers, registration, sponsorship network, or at very least, meet old friends over departments. All are welcome……. This is and exhibition opportunities, and important the occasional drink or meal. a conference for everyone to reflect on the announcements on www.suboptic.org or past, look to the future and try to generate by contacting the host at suboptic-info@ The key success factor, therefore, for the ways of working which are more effective tycotelecom.com. Make sure you put 14th Programme Committee (PC) is to add real and productive. And there are no limits to the – 17th May 2007 in your diaries now. This value for the registrants. And to do this, the subject matter. The issues do not have to be year, the registration and hotel bookings will PC needs to review feedback from the last technically based. They can be commercial, be through one site with advantageous hotel conference, repeat what was successful and regulatory, legal, environmental, strategic or rates negotiated by Tyco. SubOptic is a “must renew and refresh the programme with topical just futuristic meanderings. In fact, one of the attend” event for everyone with an interest in content. And to this end, they are working gradual changes you will note about 2007’s submarine cables. Don’t miss it! hard to achieve an exciting programme which programme is that we will be attempting to will be issued towards the end of the year. drive the breadth of subject matter as wide Obviously, the call for papers at the end of as possible into all commercial applications June is a vital ingredient, and everybody for sub sea equipment, as well as hopefully reading this article should think seriously looking as far up and down the value chain about committing pen to paper for an abstract from the retail users of capacity down to the on any relevant subject that you believe is smallest subcontractor who fills a vital niche important and needs an airing within the in the supply of installation, operational community. Whoever you are, wherever you and maintenance services. Our market has work and whatever you want to say (subject changed fundamentally since 1986 when to the rules of libel and the “call for papers” the large telco’s invested via consortium criteria), please use SubOptic 2007 to say it! agreements for the supply and operation of infrastructure to one where de-regulation and

17 Clearly, investment was excessive and ahead of the Therefore, new mobile companies are keen to time but it should not be forgotten that even during penetrate this segment and incumbents are keen to A View of the the worst years of the crisis the traffic continued to slow them down. grow. Submarine Systems The market has seen numerous submarine cable Supply Industry What is the situation today? We believe that there projects initiated by such new mobile operators. are at least four inter-related market drivers: an Among many others, one can mention Vodafone By increased level of competition, the tremendous Malta, Reliance in India, Globacom in Nigeria, Georges Krebs growth of mobile telephony, the explosion of Orascom in Algeria and Pakistan, Indosat in high speed internet and the correlated increasing Indonesia, etc… importance of network resilience. Thanks to the emergence of new market drivers, High Speed internet: the submarine system supply market is recovering. Let us examine briefly each of them. Internet and high speed Internet are obviously the At the same time, the market is changing and many major market driver today. The number of Internet new customers have appeared. We propose to Increased level of competition: subscribers is increasing exponentially and no examine those new market drivers, the evolution of The deregulation of the telecommunications market country, however remote, is immune from this trend. the customer base and the future of our challenging continues to progress rapidly on a worldwide basis. The progress of ADSL (led by Alcatel and followed industry. The wave of deregulation has been particularly by many) and FTTH technologies allows to bring strong in South and Central America, including ever more bandwidth to the individual subscriber The main market drivers the Caribbean, but it is also gaining very strong and to steadily move internet services in the momentum in India, Africa and the Middle East direction of high definition video on demand. For a very long time, the major market driver has where spectacular developments have taken place Internet servers are still largely concentrated in been the development of international voice services recently. the USA and the internet traffic pattern is clearly provided by monopolistic operators in each country. centred on the USA, requiring the use of ever more The development was regulated and regular, in line Everywhere, incumbent companies are trying to bandwidth in transatlantic and transpacific cable. with overall economic expansion and the more rapid slow down the momentum of their competitors and New transpacific cable systems are required and are growth of international trade and communications. access to international capacity available on existing in the planning stage. Even the depressed Atlantic The advent of facsimile provided a first boost to the submarine cables is one of the keys that they are market is starting to revive to the extent that capacity market in the eighties. holding. As a result, it is not uncommon to see upgrades are needed in some systems. new competitors building their own international At the end of the nineties, the availability of cheap submarine cable infrastructure when economically It is becoming vital for each country and for each individual computers and the development of the viable. operator to secure very high capacity access from internet have combined to provide a major new their country to the international network. As the source of traffic. In parallel, the development of Mobile telephony: number of internet users grows exponentially, we WDM techniques has allowed to increase massively For various reasons mobile telephony is the area see countries building new high capacity submarine the capacity provided by submarine cable systems. that best exemplifies the rapid development of cable connections: examples include the OTE This generated enormous optimism and massive competition in telecom services. Obviously, one of Greece to Western Europe system ( GWEN), the over-investment, leading to the stupendous crisis the most lucrative segments of mobile telephony Morocco to France system of Maroc Telecom, of 2000-2001 and the associated losses and is international traffic, roaming and internet traffic. and the connection of Turkey to the Med Nautilus bankruptcies. System.

18 As mentioned above, the high capacity connection several cables have recently been planned and built, In other cases, such infrastructure can be built by to the worldwide network is becoming vital for all both towards the east and towards the west. outside investors or carrier’s carriers. The Fibranet countries and territories, including remote territories. system out of Jamaica has been built in such a way Capacities provided by satellite systems cannot A new diversity of Customers and could extend to other countries. In a similar way, economically or practically cope with the demand, the Global Caribbean Network is rapidly spanning even for relatively small populations. In addition, In line with the advent of new market drivers, the the eastern Caribbean Islands. the availability of the access is becoming paramount, customer base of our industry is becoming more as the prolonged disconnection of a territory brings diverse. A special mention should be made of the carrier’s the economy ( including, among others, banking and carriers. Most of them have survived the crisis, payment systems, airlines and tourism reservation Of course, the traditional customers continue to thanks to the use of the US chapter 11 legislation. systems as well as the general flow of information represent the lion’s share of the market, including Some of them continue to have a very active role and services…) to a standstill. Many islands have the construction of very large transoceanic systems in the promotion and construction of new cable been recently connected or are planning first or by traditional consortia. A typical example is systems. A noticeable example is the construction additional connections via submarine systems. the construction of the SeaMeWe 4 System, of the Falcon system ( connecting India, Arabian Among many other examples, one can mention the extending from Singapore to Marseilles, which was countries, East African countries and the Arabo- Eastern Caribbean islands with the Global Caribbean successfully completed last year. Persian gulf) by Flag. Network, Jamaica with the recently commissioned Fibralink network, New Caledonia, Tahiti, the Because of the specific requirements of the fast However, it is to be noted that most carrier’s carriers Samoas, Madagascar and so on…. Sooner or later, growing internet traffic, some traditional customers have been acquired by solid incumbent or emerging every island with a significant population will be prefer to build their own separate cable system, operators: Flag by Reliance, TGN by VSNL, East connected via submarine cable(s) in addition to when it makes economic sense. The big novelty Asia Crossing by China NetCom, Global Crossing satellite links. is that these systems tend to be fully financed by by STT, and some of 360 Networks assets by Brasil a single customer rather than by two or more in a Telecom… Network Resilience: traditional bilateral or multilateral approach. The Internet and high speed internet is becoming the tool Greece – Western Europe ( GWEN ) system or the Finally, independent operators in yet “uncabled” of choice of the global information economy. It is Morocco – France system are recent examples and islands are also joining the long list of the industry’s not any more possible to contemplate any prolonged other similar systems are planned in various parts of customers. Examples include Telma in Madagascar interruption of the network. This is illustrated most the world. and operators in New Caledonia and Tahiti. clearly by the case of islands temporarily deprived of In the same way, it is likely that all operators in satellite services and where the entire economy and Operators not willing or not able, for whatever coastal African countries will soon enjoy the benefits most of the population is immediately affected. reason, to join consortium systems build their own of optical submarine cables, thanks to the EASSy For most territories and countries, a single high systems. This is frequently the case for large mobile and West African festoon projects. capacity cable connection is not sufficient and operators in emerging markets, such as Reliance, high capacity diversified restoration is necessary. Orascom and Globacom. When geographical A promising Future? For larger countries a fully meshed access to the distances are shorter, companies operating international network is required. Combined with on smaller scale can also construct their own Should we conclude from the above that the future the effects of competition, this leads to the need for infrastructure, like Vodafone in Malta or Meditel in of our market is great and that we are going to three or four cables in parallel over major routes. Morocco. witness a new area of growth in the submarine cable This is clearly illustrated by the case of India where industry ?

19 We believe that we should not be excessively In order to achieve this in the most satisfactory optimistic. In fact, in quantitative terms, the market way for our customers, we believe that we need is back to its “normal” pre-crisis level with about 1 to maintain our market share at the current level of Georges Krebs started his career with France billion $ total turnover and about 25 000 km of cable about 40%. Telecom participating in the installation and produced per year. maintenance activities of the cableship fleet. The repeaterless system market is also covered, He was also in charge of managing new It is expected that the growth of telecommunication to a large extent, by Alcatel and the three other projects for the company such as the TAT services penetration in emerging markets and repeatered systems suppliers. A number of others 8 and TAT 9 projects. He joined Alcatel in high speed internet will continue to be formidable companies are also active in this market but it 1988 as Engineering Manager for Alcatel drivers of the market in the next five to ten years. is noticeable that none of these companies are Submarine networks in Australia and was However, this will not result in a large increase integrated: they supply either marine services or later appointed as Vice President of the Asia of cable kilometres because the potential capacity cable or terminal equipment and combine in various Pacific region , responsible for the marketing provided by current systems still exceeds the market ways, according to the circumstances. of submarine cable systems in that region and requirements and because there is scope to deliver based in Singapore. He returned to France in even more capacity in future systems, provided To summarize the situation, one can say that the 1997 to be appointed as the Line and Marine the market generates enough funding to enable our future of the submarine cable industry is secure as Operations Director of Alcatel Submarine industry to resume the required R&D effort. the need for international bandwidth will continue Networks. In 2002, he was in charge of the to grow very steadily. The number of direct and Sales & Projects Department within Alcatel However, we can anticipate a significant increase in indirect customers of our industry will also grow, Submarine Networks. Since 2003, he has system capacity upgrades and we already see this at least in the foreseeable future and new types of been appointed Chief Operating Officer happening all around the world. customers will continue to appear. within the same entity.

A partially restructured Supply Industry However, we do not believe that the number of suppliers of integrated submarine cable systems will With the abrupt down-sizing of the market, all increase in the future; in the contrary, we foresee that suppliers have suffered big pain. the industry will need to further concentrate in order to face efficiently the challenges of the future. In the repeatered systems market, the number of suppliers has reduced from six to four. Among these We are determined to continue to serve our four suppliers, two, Alcatel and Tyco, are fully customers by remaining one of these major players. integrated turnkey suppliers and the two others, Fujitsu and NEC, are equipment suppliers relying on separate supply for cable and marine installation. Alcatel will continue to be a leader in this market if we are capable of maintaining our reliability, both as a strong company and as a supplier of reliable products. In addition, we will need to be able to reinforce our R&D effort when market demand will require more capacity at the lowest possible cost.

Ladies and Gentlemen, thank you for the opportunity United States. As you can confirm for yourself, there are to tell you about why UNCLOS is important to the cable about 29 international cables landing in this country in industry. 9 coastal states.4

By way of disclaimer, my views are based on my I should point out that the lines showing the cable experience and do not necessarily reflect the view of diameters are not to scale on this chart. As you can see the International Cable Protection Committee (ICPC)2, from the samples of actual cables on display here, each the North American Submarine Cable Association of these cables in the ocean is about the size of a garden (NASCA)3, or their members. I am confident, however, hose. Their footprint on the seabed is indeed minimal. that my views are consistent with those in the telecom While their footprint on the vastness of the ocean seabed The industry who work with submarine cables on a daily is benign and virtually unremarkable, their impact on basis. the Unites States is huge.

I note in the audience there are several industry What you may not realize is that 70% of all of the Importance members whom I would like to point out in case you country’s international telecom traffic, which includes have questions after the presentation. Bob Wargo, data transfer and video, is carried on these cables. If you Cable Protection Manager for AT&T, Catherine eliminate Canada, 90% of the country’s international of the United Creese, Director of Permits and Regulatory Affairs for traffic is carried on these cables. The disproportionate Tyco Telecommunications, and Frank Salley, Project importance of these cables to the nation’s communication Manager, Submarine Cables for Verizon. Their presence infrastructure can be seen by the fact that if all of the cables Nations Law this evening demonstrates the cooperative relationships were suddenly cut, using every single communications which enable international telecommunications to satellite in the sky, only 7% of the United States traffic function, and the importance they attach to UNCLOS. could be restored. This underscores the incredible of the Sea capacity of modern fiber optic submarine cables. By any The preamble of UNCLOS states, in part: standard, they constitute critical infrastructure to the United States, and indeed the world. Convention Recognizing the desirability of establishing through this Convention, with due regard to This critical infrastructure, by its very nature, depends the sovereignty of all States, a legal order for the upon international cooperation and law. The promise of to the Cable seas and oceans for the seas and oceans which continued advances in international communications will facilitate international communication . . hinges on an international standard providing a .[Emphasis Added]. compass whereby nations and private companies may Industry steer a course which efficiently allows international Nowhere is this statement truer than with respect to communications networks to be seamlessly planned, international communication carried by fiber optic built, and operated. cables. No other means provides the reliable and By Douglas R. Burnett1 secure capability to absorb the exponentially increasing UNCLOS provides this modern legal compass. Simply international communication growth relentlessly fueled stated, without UNCLOS, US telecom companies are by the internet. hurt in the planning, development, maintenance, and protection of the world’s undersea cable networks. For those of you who may be wondering about the UNCLOS is the key to the world’s international importance of submarine cables to the United States, telecommunication system; it unlocks the door for the I urge you to take a look at the chart on the side wall fullest participation and leadership possible by US which shows all of the active cable landings in the telecom companies.

22 At present for the United States, the operative with a segment now under construction by Canada, this maintenance off the coast of France by blocking its path. international treaty for international cables is the 1884 international marine scientific research cable system UNCLOS provides remedies which would protect the International Convention for Protection of Submarine will form the world’s most advanced undersea network cable owner’s rights in these situations. Judge Wolfrum, Cables. This venerable treaty was designed for old of scientific observatories and 24/7 monitoring sites the President of the International Law of the Sea international telegraph cables. While most of its off the west coasts of Canada and the United States. Tribunal, is in the audience and could certainly expand features are included in UNCLOS, UNCLOS provides This international cable system will yield new insights on this point. For those who may feel that was only a real improvements required by the steady progress into the environment beneath the seas ranging from British and French problem, you would be wrong. The made in international communications in the past 122 forecasting volcanic and seismic events to maximizing cable involved carried US traffic. years since the 1884 treaty entered into force. UNLCOS the benefits of living marine resources and protection of is essential for modern telecom business. the marine environment. UNCLOS benefits are not just Since 1998 China6 is requiring permits for cables not commercial. landing in the country, but which transit its EEZ. The For example, under the 1884 treaty, nations are required Russian Federation since 1995 is claiming the right to to provide criminal and civil sanctions for negligent or Military cables with sensors vital to national defense delineate cable routes on its continental shelf in the intentional actions which cause injury to a submarine and homeland security depend on UNCLOS to allow Arctic as far north as the North Pole. Both of actions telegraph cable. Unfortunately, under this treaty, the their placement on the high seas. No other treaty are violations of Article 79 of UNCLOS which does not cable owner must wait until the damage is done before provides this international right. And customary law is allow a coastal nation to delineate or permit the routes of sanctions are triggered. Under UNCLOS, conduct which often murky. transiting international cables on the continental shelf. is likely to result in injury can also be sanctioned. Under UNCLOS, a cable owner has a remedy to prevent the In modern times, cables are serving multiple uses. Last February, in response to a proposal by the province injury to critical infrastructure in the first place. When The Ocean Fiber system, a domestic submarine cable of Nova Scotia to possibly mandate cable routes and one considers the average $1M plus cost of a cable repair system linking Florida and Texas will connect 25 of the require payments to bottom fishermen for use of the and the potential disruption a cable break can cause to largest off-shore production platforms owned by five seabed in international waters, North American cable vital economic and strategic interests, it is easy to see energy companies and will enable them to monitor owners based their strong jurisdictional arguments why cable owners want UNCLOS now. and operate these platforms continuously from remote against the plan on the straight forward provisions of control centers ashore, impervious to hurricanes. The UNCLOS, which since Canada is a party to UNCLOS, The 1884 treaty is limited to telegraph cables. UNCLOS same cable system will provide a secure and alternative are binding. provides and expands the protections accorded telecommunications to the public, largely unaffected telegraph cables to all international cables regardless of by storms or other threats to land facilities. The same UNCLOS is a powerful tool to overcome these use. system will be equipped to connect with an undersea encroachments on the freedom to lay cables, but sensor network designed to improve homeland security US companies suffer, because the United States has Besides fiber optic telecommunication cables, power far out to sea. not become a party. If the United States is a party to cables are protected. The Juan de Fuca cable, an UNCLOS, then US telecom companies, the Navy, and international electrical cable which will bring power Cables for all of these uses benefit from UNCLOS. scientists can enlist the U.S. government to enforce from Canada to Washington state in 2007, is an example Fundamentally, the ability to lay, maintain, and repair the rights of cable owners to lay, repair and maintain of this new international cable use close to home.5 Plans cables outside of territorial seas on an international basis cables in international waters. Without the status of a have also been made for a submarine power cable from rests on the protections of UNCLOS. In a world where party to UNCLOS, the United States has no access to the Nova Scotia to New York. America needs Canadian the competition for use of the oceans is accelerating, important remedies under UNCLOS to enforce treaty energy. disputes by competing nations and seabed users will obligations on behalf of US companies or government occur with increasing frequency. I provide recent agencies. The new scientific Neptune cable system, included in examples, but keep in mind that these types of activities the Presidents Budget released earlier this year through will increase over time in a global economy. UNCLOS provides a universal standard of conduct, funding of the National Science Foundation, is another rights, and obligations agreed upon by 149 nations example of a cable use recognized by UNCLOS, that is About two years ago, French fishing vessels unreasonably which fosters the development of international not the 1884 treaty. When completed in two years, along obstructed a British repair vessel in carrying out cable cables and can only benefit the United States and US

23 companies. Without UNCLOS, US telecom companies Critics of UNCLOS raise the argument that since many Senate this year by an up or down vote on UNCLOS. are handicapped in competing with foreign companies. of the rights spelled out in UNCLOS can be considered customary international law to which the US adheres, Thank you. UNCLOS is needed as well close to home. UNCLOS there is not need to formally ratify the convention. provides clear boundaries between seabed users and coastal nations with universal norms. These same norms From first hand experience, I can say this academic are needed with respect to federal and state government argument fails in the real world. Customary international policy. law requires a court decision to determine state practice, before it can be said to be binding law. Last year I involved In the last eight years, the traditional rights of cable in a non-cable major marine pollution case pending in a owners outside of territorial waters have been the US court where the issue was the rights of a European victim of steady encroachment by certain state agencies coastal nation to refuse entry to a leaking supertanker and certain federal agencies which seek to expand their after the crew had been rescued. I think the issue is regulatory reach over international cables- in California well addressed in UNCLOS, but both sides presented or Oregon out to 200 nautical miles, in New Jersey out expert witnesses and detailed memorandums arguing to 110 nautical miles off their coasts. Compare these for different interpretations of what the applicable state with state jurisdictions over international cables of 3 practice and customary international law is. Ultimately, nautical miles claimed by Florida or New York, and the we won’t know the answer until the Judge decides quandary of cable owners can start to be appreciated. the issue. The point is that telecom companies can not 1 International Cable Law Advisor, International Cable Protection Committee (ICPC), These jurisdictional differences translate into added make business investments on such an illusive basis as Partner, Holland & Knight LLP ([email protected]), Chairman, New York County delays of 1-2 years and millions of additional dollars customary international law. They need reliable and Lawyers Association Admiralty & Maritime Committee (2004-Present); Chairman, for installing new cable systems. This jurisdictional discernable international law which UNCLOS expressly Committee on International Law of the Sea, Maritime Law Association of the United confusion would be harmonized by UNCLOS. provides. States (1994-2000); Captain, USN (ret.); University of Denver, J.D. (1980); U.S. Naval The current uncertainty and conflicts over the limits of Academy, B.S. (1972) the United States continental shelf and margin and the I recall seven years ago working with the Oregon 2 Information on international cables worldwide is available on the ICPC website rights and obligations of international cables laid on it Department of Environmental Protection on new www.iscpc.org. will be largely resolved by UNCLOS. regulations affecting cables landing in that state. While 3 Information about telecom cables in North America is available on the NASCA Without UNCLOS, the jurisdictional tug of war between the regulators agreed to incorporate any treaty to website www.n-a-s-c-a.org. various federal and state agencies will continue and may which the United States was a party as a compliance 4 Rhode Island, Massachusetts, New York, New Jersey, Florida, California, Oregon, impact future decision on whether international cables requirement for permitting decisions, they declined to Alaska, and Hawaii. 11 cables land in the Northeast, 10 in Florida, and 8 on the West will be landed in the United States or whether Canada include any reference to UNCLOS or customary law.7 or Mexico will provide better commercial opportunities. coast. Such a result, if it comes to pass, raises important issues The point I stress is that being a party to a treaty lends 5 http://www.jdfcable.com/ for US security. a quality, sharpness, and ease of reference to an issue 6 China ratified UNCLOS in 1996 and the Russian Federation did so in 1997. UNCLOS provides a common reference which state which obscure aspects of customary international law 7 Oregon State Regulation 141-083-0810 states: and federal government agencies can use to gauge their simply can not. (1) The placement of fiber optic and other cables on state-owned land within the jurisdiction with respect to a universally defined norm. Territorial Sea is recognized by the Division as a conditionally allowable use of that The continued encroachment by the domestic US states If asked, virtually all telecom companies which own land, subject to and consistent with the requirements and provisions of applicable on traditional cable freedoms, besides complicating or operate international cables, would confirm that any decisions and placing barriers to the installation UNCLOS is essential for their continued success. This international treaties (for example, the Convention for the Protection of Submarine or upgrade of existing US cable infrastructure, also Convention has been carefully reviewed in the 12 years Cables of 1884; the Convention of the High Seas of April 1958; the Convention on the encourages by example similar encroachment steps by since the United States became a signatory. I know the Continental Shelf of April 1958; and the Submarine Cable Act) and other applicable foreign governments. strongest support exists in the industry for action by the federal, state, and local laws.

24 Atlantic Tide Turning? by Julian Rawle, Managing Partner, Pioneer Consulting

In February 2003, when Cable & Wireless lit a handful of fibers new installations. There are murmurings in the industry of a Other cable system owners have complained to Pioneer on “Apollo”, the latest in a series of state-of-the-art transatlantic significant upswing in transatlantic capacity orders but the that they are still being forced to sell transatlantic capacity at systems, the lights effectively went out and the doors were pace of growth is as yet unclear and so the timing of renewed or below cost but there is also agreement that 50% annual firmly closed on what had once been the most vibrant market activity in the submarine sector has yet to be determined. reductions in bandwidth prices are a thing of the past. One for investment in the submarine cable industry. With so much school of thought suggests that there should be an increase available capacity from so many cable systems, bandwidth in bandwidth prices as supply and demand come back into prices fell below cost, causing devastation in the transatlantic Nevertheless, Pioneer Consulting believes that these new balance. This presupposes that bandwidth is a commodity market and creating a knock-on effect in the regional Europe market drivers are sufficiently strong to merit some research like crude oil or coffee. Pioneer discounts the possibility Atlantic market. More than three years later, any discussion of with a view to publishing concrete forecasts of the regional that bandwidth prices will ever do anything more than allow these markets among industry veterans remains couched with Europe Atlantic and transatlantic markets in a forthcoming operators a thin margin over cost. Volume will be the driver of wry smiles and ironic comments. report later this year. This article summarizes our current future profitability and so successful operators will be those findings from primary and secondary sources and some initial who can best leverage available economies of scale. analysis of the supply-demand balances. However, contrary to popular perception, the transatlantic and Europe Atlantic markets have not been stagnating entirely. Apparently, interest from customers in IRU’s is increasing with First of all, there was consolidation with the decommissioning Market Update – “A Migration to Quality” one operator claiming that only 50% of their sales enquiries of a number of old and not-so-old cable systems whose O&M are now for leases. Global Crossing recently stated at an unit cost was too high for these ultra-competitive markets. When FLAG Telecom announced a 500%, quarter-on- Analyst Briefing that they were seeing increased demand for “9/11” and the “War on Terror”, not to mention more natural quarter increase in capacity sales for the first half of 2005, dark fiber from non-traditional players, such as Google, as disasters such as tsunamis, hurricanes, and earthquakes, have FLAG’s VP of Marketing, Chris Wood, attributed the increase well as from carriers whose network utilization has passed the highlighted the vulnerability of many strategic installations, to a “migration to quality”. He was referring to the uptake of magic 45-50% mark. including cable landing stations and city PoP’s. Most recently, broadband services by businesses and the virtual ubiquity the much-hyped “Triple Play” (now also “Quadruple Play”) of multi-megabit residential connections in North America service offering is becoming a reality on both sides of the Level 3 claimed in February this year that their purchase of and Western Europe. However, this description could also 300 Gbit/s of capacity on the “Apollo” system, with an option Atlantic, bringing bandwidth-hungry applications, such as apply to the “purging” of the corresponding submarine IPTV, VoIP, MP3 downloads, Peer-to-Peer file sharing, Video for a further 300 Gbit/s, was sparked by their reaching 85% fiber optic markets. Inefficient cable systems have been utilization of their existing 480 Gbit/s of transatlantic capacity. Conferencing, and Multiplayer Interactive Gaming to the removed, operational costs have been slashed, and the cable common man. Level 3’s transatlantic IP traffic has increased 100% since maintenance market has been forced to become much more the beginning of 2005. Moreover, they are stressing the route competitive and price-conscious. diversity of their transatlantic network which has alternative Furthermore, 3G wireless networks are finally beginning to termination points to the usual UK-New York route. Ten out gain traction in the European market and 4G technologies are The cynics will say that FLAG’s announcement was merely of twelve transatlantic cable landings in UK are located in the promising broadband wireless connectivity of up to 70 Mbit/s. sales hype. Pioneer would be inclined to agree with them if same south-western region of the country. Moreover, most of While much of this potential increase in data traffic will probably it were not for the cautiously optimistic feedback we have these systems provide connectivity to PoP’s in London with carry domestic or mirrored content, there will undoubtedly be received from interviews with other industry players. Another very little backhaul route diversity. Similarly, ten out of sixteen some positive impact on demand for international submarine major owner of multiple submarine cable systems told us transatlantic cable landings in North America are located in fiber optic capacity. that the majority of the RFP’s they had received in the last two clusters along a 130-mile stretch of New Jersey and New 6 months were for transatlantic capacity and the general York coastline, all of them serving PoP’s located in New York City. Undeniably, these are major potential drivers of demand consensus seems to be that transatlantic system upgrades for submarine fiber optic system bandwidth, upgrades, and are 2 to 4 years away.

25 Price stabilization, long-term investment in capacity, concerns about having sufficient redundant Exhibit 1: Transatlantic Cable Landing Countries capacity, and increasing demand for network resiliency also support the idea of a migration towards quality and away from survival mode.

2 Within the intra-regional Europe 6 2 Atlantic market, the main area for potential growth in the 2 Brazil submarine cable sector appears to be in the Baltic Sea and around Scandinavia. The main Canada reason for this is the age profile 4 of the systems in this region, coupled with worldwide growth in Denmark IP traffic. For example, of fifteen 7 cable systems on the key routes between Denmark, Sweden, and France Finland, nearly sixty per cent of 2 the available capacity is located on cables which were built before Germany 1999. The new Norwegian coastal festoon system between 2 Trondheim and Narvik is tangible Italy evidence of this trend.

2 Netherlands

Portugal 2 UK

USA 14 Other Europe Other 12

26 Insert Exhibit 1: Transatlantic Cable Landing Countries

Price stabilization, long-term investment in capacity, concerns about having sufficient redundant capacity, and increasing demand for network resiliency also support the idea of a migration towards quality and away from survival mode.

Within the intra-regional Europe Atlantic market, the main area for potential growth in the submarine cable sector appears to be in the Baltic Sea and around Scandinavia. The main reason for this is the age profile of the systems in this region, coupled with worldwide growth in IP traffic. For example, of fifteen cable systems on the key routes between Denmark, Sweden, and Finland, nearly sixty per cent of the available capacity is located on cables which were built before 1999. The new Norwegian coastal festoon system between Trondheim and Narvik is tangible evidence of this trend.

Exhibit 2: Cable Age Profiles and Available Capacity on Key Europe Atlantic Regional Routes

Total cable and there are only three Cable Age No. of % Total high-capacity cables in total. Route Capacity Since joining Pioneer Profile Cables Capacity This route is considered critical (Gbit/s) by transatlantic customers for Consulting, Julian <7 years 1999+ 1 120 55% providing resiliency in the event has brought his Sweden-Finland broad international <14 yrs 1992+ 5 99 45% of disaster at termination points in either UK or France. Cable & industry experience older 0 0 0% Wireless’ recently announced and his knowledge Total 6 219 decision to construct “Hugo” (UK- of the market to bear Guernsey-France) goes some on the issues facing Sweden-Denmark <7 years 1999+ 1 120 33% way to addressing this issue. the submarine <14 yrs 1992+ 6 230 63% fibre optic industry today. He co- older 2 16 4% Preliminary Forecasts authored Pioneer’s Total 9 366 latest submarine UK-Belgium <7 years 1999+ 3 2,160 100% Pioneer’s new report will market report <14 yrs 1992+ 1 5 0% incorporate the latest figures on which combines a European Internet penetration worldwide forecast older 0 0 0% and broadband demand, as well of supply and demand with a comprehensive Total 4 2,165 as corporate data and switched study of the equipment market and suppliers’ voice demand. Indications are UK-France <7 years 1999+ 2 990 51% competitive positions. He is currently researching a that demand for intra-regional and transatlantic and Europe Atlantic report, as well as <14 yrs 1992+ 1 960 49% transatlantic submarine fiber optic leading a Traffic Study for the West Africa Festoon older 2 4 0% capacity is robust. Preliminary System (WAFS). In February 2006, Julian became forecasts indicate compound a Managing Partner and co-owner in the company. Total 5 1,954 average growth rates of more than Julian has a first degree from Manchester University, UK-Ireland <7 years 1999+ 4 2,220 97% fifty percent in demand for both transatlantic and Europe Atlantic U.K. in Russian Studies and a MBA from Cranfield, <14 yrs 1992+ 2 75 3% intra-regional capacity. one of Britain’s top three business schools. He older 1 1 0% began his career with British Petroleum and was instrumental in developing BP’s first downstream Total 7 2,296 Upgrades to transatlantic systems activities in Russia before and immediately after the are likely to begin occurring within collapse of the Soviet Union. He went on to provide FurtherExhibit impetus 2: toCable growth Age Profilesin the Baltic and reAvailablegion may Capacity come onfrom a re-energized Russianthe next two years. However, if marketing and strategic consultancy services to Key Europe Atlantic Regional Routes our assumptions are correct about the potential for growth in Chevron International Oil Company in Eastern telecomFurther industry impetus which to growth is looking in the Balticto follow region its may oil come and fromgas counterpartsusage of broadband by applications (fixed and mobile) and the Siberia, Kazakstan, and Azerbaijan before switching internationalizinga re-energized its Russian business. telecom While industry Pioneer which remains is looking skeptical to “migration of grand to plansquality” to continues build a to drive requirements for better to telecom. He spent 4 years as Cable & Wireless network resiliency, available unlit capacity on transatlantic follow its oil and gas counterparts by internationalizing its Representative Director in Moscow, building up a submarine fiber optic link along the planned North European gassystems pipeline could and be consumed “Polarnet” relatively quickly thereafter. business. While Pioneer remains skeptical of grand plans large and profitable business, based on aggregation remainsto stuck build ain submarine the ice, therefiber isoptic strong link along potential the planned for Russian North investors to snap up any of international PSTN traffic and provision of European gas pipeline and “Polarnet” remains stuck in the As highlighted above, there is already pressure on certain managed data services to multi-nationals. He then ice, there is strong potential for Russian investors to snap routes within the Europe Atlantic region for additional capacity accepted a post with Cable & Wireless Global up any available assets which would offer an alternative to to facilitate disaster recovery. Pioneer’s initial analysis suggests Marine as International Marketing Director, Japan. transiting numerous East European networks in order to reach that “Hugo” is the first sign of new demand for intra-regional Based in Japan for two years, he assisted Global the West. submarine fiber optic capacity which will be met over the next Marine’s Japanese joint venture partner, NTTWEM, five years by a combination of upgrades to existing systems to develop and implement a new international Elsewhere in the Europe Atlantic region, the concern is not so and construction of a few new feeder systems on key routes. marketing strategy. much with the age profile of cable systems but with the lack of route diversity. For example, on the UK-France route, nearly half of the currently available capacity is on MCI’s “Ulysses” Since joining Pioneer Consulting, Julian has

27 “A banker is a fellow who lends you his pumped into the supply side and the rest is history umbrella when the sun is shining, but wants it – the storm clouds gathered and the bankers ran back the minute it beings to rain”. for shelter, taking with them the valuable finance capability needed to build vital elements of global Mark Twain, US Novelist, 1836 – 1910 infrastructure. Bankruptcies, Chapter 11 filings, distressed asset sales all followed, and the industry I read with interest Jean Devos’ “Letter to is still trying to recover. The supply side was in a Friend” in the last edition (March 2006) meltdown, with companies having to slash costs to of SubTel Forum and, having been directly chase prices that were in free fall. involved in both Gemini and Apollo, felt the need to reply and articulate a view that During this turmoil, Apollo was built as a I have formed with my experience of these successor to Gemini, using a very similar two systems. The need to “say something” formula and business model. Supplier finance was further inspired by John Manock’s replaced bank debt, and the joint venture included “Recovery year behind us….” This article took the system manufacturer, ASN as a minority A Responsible an analytical view of 2005 and a crystal ball shareholder. A similar management structure was attempt to see through 2006. developed and almost all operational tasks were Future outsourced. The objective is always to achieve the Jean is absolutely correct to look at Gemini lowest operational costs, whilst maintaining the as a prime example of a system developed at highest level of operating capability and standards. “the time of plenty”. The fundamental reason for introducing a privately financed cable to The differences in the operating characteristics compete with the TAT’s, was to allow the newly of the 2 systems are relatively easy to understand By de-regulated and licensed international carriers even for the less technically minded. Gemini, the commercial freedom to compete against after upgrades, had a maximum capability of the incumbent telco’s who formed the TAT approximately 6 x 10 g/bit wavelengths on a Alan Robinson consortia. Gemini had a simple shareholding protected basis or approximately 12 x 10 g/bit structure, was underpinned by bank debt and wavelengths on an unprotected basis. Apollo was had a small, capable management team. This built without ring protection allowing customers allowed the venture to be planned, executed and to develop their own mesh networks. The fully operated in a very straightforward and effective lit capacity for the system is 640 unprotected manner, enabling quick decisions and sound 10 g/bit wavelengths, which over time, as more profitability. The bank debt was repaid early, wavelengths are lit, guarantees our customers the the company generated considerable amounts most cost effective capacity across the Atlantic. In of cash and the business plan was exceeded in addition, Apollo differs from Gemini by offering just about every aspect of its delivery. The sun a direct Europe (Paris) to Washington route which truly shone, and Jean’s banker friends were busy avoids New York. No other Atlantic system offers replicating the model, firstly in the Atlantic and this route. then around the world. Billions of dollars were

28 So in summary, Apollo has the highest capacity Prices have to rise in this “commoditised” capacity Alan Robinson capability, with the lowest unit operating costs market. But capacity is not a true commodity, nor Managing Director and two diverse routes from London to New is it likely to be traded as such, for a long, long York and Paris to Washington and New York. time. Investment in systems follows some very Our confidence in our service offering was simple economic rules which is why the original Alan Robinson is underpinned by the recent Level 3 purchase of consortium approach of risk and finance sharing 300 g/bits (30 x 10 g/bits) of capacity, with Level was so applicable in the early days of submarine Managing Director 3 having an option to purchase another 300 g/bits cable development. Competition is healthy, but of Apollo and in the medium term. The agreement with Level 3 the barriers to entry are enormous. The banker President of the established them as our major anchor tenant and and the manufacturer helped knock down the was developed in a partnership approach. Both barriers, but the rush for quick payback and profit SubOptic Executive companies were looking to the long term and had not only led to a misguided appreciation of future 2007 committee. He a common objective to stablise supply in a period demand, but a frenzy of investment. has extensive experience across a broad range of increasing uncertainty and lack of investment. The banker is not going to solve the problem of international submarine cable businesses. John Manock in his SubTel article concluded that he helped to create. The industry has to solve Alan is a Master Mariner and commenced this was a refreshing change from the difficult it by responsible buying and selling. After all, conditions over the past 3 years. He is indeed the bank financed system, with a small, dynamic his career in BT in 1976. He held a number correct…. But the Level 3 capacity deal with management team focussed on running a business of appointments in the cableship fleet before Apollo by itself will be insufficient to see the which generates returns for the shareholders does taking an operational management role in return of the bankers. Investment in new systems work. Southern Cross is a perfect example of such will have to be funded by the users as part of a a model. But before we blame the bankers, we 1981. He held positions in Sales and Project consortium model in which the owners take the need to get back to some fundamental disciplines Management before being appointed BT fundamental risk. And this situation is likely to be that are required to underpin long term, high risk, with us for some considerable time. The current, infrastructure investments and this includes buying Marine’s General Manager for the Asia Pacific unsustainable situation in the Atlantic defies and selling responsibly! region, based in Singapore, from 1990 - 1994. all the basic laws of economics. The buyers, On his return from the Pacific Alan joined presented with an oversupply situation, are intent upon forcing down prices to beneath incremental Cable & Wireless where he has held a number upgrade and operating costs. Level 3 took a long of senior management positions in network term, partnership approach, whereas the majority operations and capacity management. He was a of Atlantic buyers seem focussed on the short term and appear to be determined to bankrupt their Director of Gemini from the system’s inception supply base. If this attitude continues, it will have to closure. serious repercussions and those systems that have already had one session of intensive care, may find they need another.

29 While the installation of cable systems may be catch up. Additionally in WWII, large pieces of perceived to be far removed from a military equipment (for example cargo ships and cargo exercise or global disaster, the concept of logistical planes) were required to be manufactured to move support for these complex project operations is large quantities of supplies overseas to support analogous to a military campaign. Over the past simultaneous and multiple theaters of operations several years, large, long distance trans-ocean – Europe, Asia, Africa and the Pacific. cable systems have led the way to the linking and development of smaller, more decentralized You will not find it difficult to prove that regional systems. Generally, with large trans- battles, campaigns, and even wars have been ocean systems, the submarine cable came ashore won or lost primarily because of logistics. at one or two locations - the beginning and end of the system - with the shore end cost and risk - General Dwight D. Eisenhower Project budget comprising a small percent of the overall system total. Regional systems, comprised of shorter distances between landings and sometimes Historically, changes in the composition of military Logistics for multiple landing sites, have now significantly forces from isolated, small groups (for example, increased shore end installation cost percentages the Macedonian syntagma) to the global challenge Regional with respect to the overall installation or project of Operation Iraqi Freedom have shaped the budget. This cost percentage increase then development of logistical strategy. This evolution becomes of critical importance in accurately in how logistics is viewed has also supported the System estimating and budgeting total system cost and generation of an administrative function – the risk. As with a military exercise or campaign, logistician - required to anticipate and sustain Installations development of a logistics strategy becomes these large bodies of personnel and transportation increasingly important to improve efficiency, requirements. And as armies grew larger, a natural increase cost savings, optimize resources, and progress in the emergence of tactical flexibility, reduce risk. increased geographic operations area (aero By squadrons), and small groups operating within the As with many processes, evolution of the concept larger army (Pacific island war fare) generated Virginia Hoffman of logistics has been driven by military dominance the additional need for effective communications and strategy - winners supply their field troops between the support staff and field operations. efficiently and effectively. In a classic example of the importance of military logistics, in the summer A little neglect may breed mischief: for want of 1944 the United States Third Army, commanded of a nail the shoe was lost; for want of a shoe by General George Patton, was moving speedily the horse was lost; and for want of a horse the across France when it suddenly got bogged down. rider was lost. The problem was not opposition from the German army - it was a lack of fuel for the vehicles. - Benjamin Franklin The army had gotten so far ahead of its source of supply that it had to stop and wait for fuel to

30 The Department of Defense Dictionary of Military Utilizing these lessons, in the development of an extra cost to meet schedule (for instance, and Associated Terms defines the term logistics as: installation logistical strategy, the first item to limited flights between islands, equipment the science of planning and carrying out the be addressed is development of a logistics plan. must be brought to the island to assist in movement and maintenance of forces. In its Whether for a large or small regional systems, the shore operations), special equipment to most comprehensive sense, those aspects plan should contain several key items: acquisition handle freight, or identification of official of military operations which deal with: of data, development of working timeline, personnel to clear items into the country. a. design and development, acquisition, personnel responsibilities, a communications The development of a time line would storage, movement, distribution, plan, and a contingency plan. This plan should better mitigate schedule and cost risk by maintenance, evacuation, and disposition be nominally developed during the bid process to 1) identifying possible non traditional of materiel; b. movement, evacuation, and identify any items that will escalate costs and then methods of transportation or asset use hospitalization of personnel; c. acquisition upon award, detailed, developed, and implemented (ferries, charter services), 2) implementing or construction, maintenance, operation, and then studied for success/failure factors: possible pre positioning/storage solutions, and disposition of facilities; and d. or 3) by identifying if assets are unavailable acquisition or furnishing of services. • Data regarding the political and within country. geographical region. For instance, • Develop personnel responsibilities The Asian tsunami and Hurricane Katrina as non this would include local language(s), and locate resources. Seemingly military natural disasters have also affected the whether or not work permits are required, simplistic, but the creation of a hierarchy understanding and underscored the critical nature the time to process them (which must and responsibilities within the logistics of the movement of supplies and personnel as include subcontractor personnel), any requirement will facilitate communication part of an emergency response. In the case of the regulations regarding passage of materials and efficiency. Single point of contact tsunami, logistical activity was complicated by the or personnel, contractor or subcontractor becomes necessary and mitigates risk, addition of third world health and transportation nationality issues, embargos on any especially if field communications are problems. The sheer immensity of these two materials, security (national or otherwise), compromised or non existent. events required global mobilization into areas identification of general transportation • Development of a communications of devastation with little or no support services. requirements, initial identification of plan. Field operations usually run 24/7; Major lessons were learned regarding movement critical path elements, currency or banking consequently clear lines of communication of life saving materials and personnel and these requirements, or any third party issues such must be developed to efficiently anticipate lessons are now being applied and regulated to as key subcontractors/services. Within any problems and to confirm assets. mitigate timely and costly mistakes within the the certain geographic regions such as the In some areas, cell phone coverage is logistics and emergency response community. Caribbean, multiple island nations (and basically non-existent or may require languages) may be part of the system. expensive roaming charges. Use of You realize when shoeing the horse that the This generation of data will provide local systems may add considerable cost shoe may be thrown--possibly causing the more accurate and timely visibility of if not done properly. Additionally, the horse to run, so you have a mule on standby to requirements. change in contact phone numbers for key get the rider to the war. • Development of working time line individuals may frustrate or impeded field to further quantify and identify critical decisions. Setting up communications and - Capt John P. Laverdure, Scott Air Force path items. Within a regional system, notification of contact procedures prior to Base, HQ Air Mobility Command, 1996 the physical movement of project assets field operations will assist in efficiency. from one location to another may require Other items to consider are email, project

31 information distribution methods, and Virginia Hoffman incommunicado of key personnel. My logisticians are a humorless lot...they • Development of a contingency plan. know if my campaign fails, they are the first Within any plan, options must be ones I will slay. - Alexander With over considered for maximum cost savings 25 years of and risk reduction. Projects scheduled for it may be necessary to have logistics support move engineering and installation during “bad” weather seasons in advance of the shore end operations if local procurement (for instance, winter in the northern areas, assets have not been defined or developed within or hurricane season in the Caribbean), must experience, the logistics plan. The addition of a logistics have contingency plans available for both she received support person to each operation to coordinate personnel safety and material movement. and negotiate local small assets regardless of the a BS degree Additionally, assets may require movement project size may reduce risk within the overall in Physical Chemistry from Stockton through geographical areas that are project. vulnerable to weather patterns. State College in 1976 and a BS degree in Ocean Engineering from Florida Bottom line, development of a comprehensive As the plan is being fully developed, the second Atlantic University in 1978. She logistics strategy and plan that includes field major item is the acquisition of materials or support personnel within the project team will joined the Naval Underwater Systems services using subcontractors in accordance to the mitigate risk, control cost, increase efficiency of Center, Atlantic Undersea Testing plan. In a larger project, this item may be a stand operations, and ensure successful field installations alone unit or division - it functions to identify and and Evaluation Division supporting for regional cable installation projects. bring on line (or under contract) assets and points ASW and the various Navy ranges of contact, and to ensure availability of services and then moved to Tracor Marine in and materials. Personnel in this position are Fort Lauderdale where she worked sometimes referred to logisticians. Additionally, on different ship, salvage, and the process of either pre positioning assets or storage of either parts or finished materials as ocean construction projects. Since operational issues will also need to be addressed. leaving Tracor, she has worked with In some instances, due to transportation or support several companies involved in marine equipment restrictions (such as cable loading engineering and most recently with operations onto smaller vessels in foreign ports or transport of heavy equipment to support shore end Global Marine as the Offshore Liaison operations), pre positioning and/or storage may and Government Sales Representative. facilitate cable ship schedules and be more cost She joined WFN Strategies in 2005 as effective. Agents will need to be identified and Project Manager, and has supported contacted. telecom projects in the Gulf of Mexico, Transportation of equipment and shore personnel Caribbean and West Africa. ahead of the cable ship becomes critical to keep installation or cable ship schedules. In some cases,

32 Improving Time-To-Market and Reducing Risk Before and During Project Implementation By Debra Brask

In today’s transoceanic and regional Once the need for a partnership is determined, of revenue on the remainder of the system while telecommunications markets, it is critical to identification of potential landing parties should awaiting approval to land in countries not initially provide capacity on newly constructed systems begin as soon as possible. When the landing included. This allows for a shorter interval to bring in the shortest time possible for system owners party partner has been selected, the team should these countries online as soon as permitting is to meet or exceed business case expectations. proceed to negotiate and sign a landing party approved. Selection of a site that will not change The critical factors in reducing project intervals agreement as soon as possible. In circumstances during the implementation of the project, or be and risk are the manufacturing back log of the where no landing party is required, the owner burdened with prolonged permit intervals, is suppliers, preliminary planning of the project, should begin the process to file for an operator’s critical to maintaining the accelerated schedule. initial capacity needed to meet business plan license. This is critical in most countries because Desk Top Studies are a direct way to obtain the objectives, and the cooperation between the operational permits cannot be requested or required permitting information. This study aids in supplier and owner during the construction. obtained until the operator’s landing license has the permitting process as well as understanding A variety of approaches can be executed during been granted. This license allows a supplier to the initial route and landing location. Changes the planning and implementation of submarine begin filing for operational permits immediately during this stage of the project related to the projects that show improvements in the traditional after contract signing. landing site, accommodating permitting barriers, schedule intervals. The result is the potential The next important factor in site selection selecting marine routes or terrestrial connectivity reduction on the order of 4-6 months from is determining the feasibility of obtaining to the landing station do not significantly impact traditional implementation. construction permits, both land and marine. the project duration. Contracting for a Desk Top Evaluation of the permits in various municipalities Study, prior to the contract coming into force is Pre-Contract Planning within a given country can determine if approval of highly recommended for project optimization. The first critical decision to minimizing risk is permits will be a three-month or two-year process. Desk Top Studies will also state if there are the identification of the system’s geographic If the approval process is too lengthy, potentially potential weather windows to avoid. Installation locations. Once the locations are identified, a due to environmental impact studies, an alternate should occur when the weather window is most brief preliminary analysis of the ability to obtain site may be selected and the system design can favorable for marine work to avoid downtime. an operators license within each country should be modified to ensure that the key cities are still be conducted. The best approach to obtain Preliminary planning, with respect to initial being integrated. this information is to contact local counsel with capacity (number of wavelengths and the number experience in the telecommunications market. Owners may opt to install a branching unit, of fiber pair being lit), can reduce the project The contact will be able to provide advice on the independent of the municipality selected for schedule interval while allowing an owner to interval needed to receive a license, or if a landing the landing site, which will eventually enable turn on the first few wavelengths for capacity party will need to partner with the owner to land/ connectivity into a country that has too lengthy sales. The remainder of the wavelengths can be operate the system. a permitting process. This facilitates generation added on an “as needed” basis in accordance

33 with capacity demands. Lighting up a single fiber The implementation phase for the system ITP pair with multiple wavelengths rather than one supply begins with an “Intent to Proceed” (ITP) or wavelength on multiple fiber pairs, will save time or “Memorandum of Understanding” (MOU) MOU on installation and testing. arrangement between owner and supplier. The next one-to-two months are spent negotiating Contract Long Lead Desk Top Project Implementation the details of the contract, technical solution and Forming Procurement Interval reduction should focus on key areas in overall expectations (Contract Forming). It is project implementation: permitting, route survey & essential to maximize planning during this time, Contract engineering, system engineering, manufacturing through collaboration between both parties, for & procurement, installation and testing. Related any significant interval reduction to be achieved. similarly to that depicted by Figure 1 below, the The two critical implementation activities to be standard intervals and relationships between the initiated during the Contract Forming phase, if Survey Manufacturing work items can be improved for each of these they have not been completed in the preliminary & Procurment major categories with cooperative efforts between planning stage, are a Desk Top Study and long- the owner and supplier. lead material ordering. A Desk Top Study should Installation be undertaken to facilitate Route Survey & ITP or Engineering and permitting activities immediately MOU after the contract is signed. Long-lead material Commissioning orders can be placed during the Contract Forming Contract Forming phase if sufficient funds have been provided with the ITP. This allows the purchaser to RFPA

Contract reserve space in the manufacturing queue at the supplier’s factories. Depending on the length of negotiations, this may save one to two months. Figure 2. Accelerated Flowchart

Long Lead Desk Top Figure 2 captures the impact of these actions. Procurement Two activities are dependent upon information derived from the Route Survey & Engineering and Survey Desk Top Study effort: Cable Manufacturing and System Design. Cable armoring and integration Manufacturing & Procurment can be modified based on the Route Survey and Engineering output. Current Technology

Installation allows for a reduction in the Route Survey/Route Engineering interval as Route Survey data can be processed during the survey and transmitted Commissioning to the Route Engineering team for real-time engineering of the system. This can potentially RFPA save a month of engineering time after the entire survey is complete. The owner should participate in both the deep sea and near shore surveys to Figure 1. Typical High-Level Project Flowchart

34 ensure that each is engineered and approved in by incorporating purchaser tests into the the shortest time frame possible. standard commissioning program. Purchaser representation during the approval of test results As the project moves into the manufacturing is highly recommended because it can eliminate phase, flexibility is important in maintaining time required for a separate review period of the interval reduction options. Consideration might results. These efforts can eliminate one to two be given to staging cable or using freighters to months in the overall schedule. transport and stage cable at or near the cable grounds. Separating the marine program into a Conclusions main lay and burial program with two different Continued investment in the undersea fiber-optic vessels can reduce the overall interval, although infrastructure is required to support the demand the cost of the program would be higher due to for bandwidth across the globe. Effective up- an additional transit and mobilization. The burial front planning and initial groundwork, which portion of the program would be installed first will minimize change in scope after contract since this is typically the longer of the two marine signing, can lay the foundation for a successful Debra Brask programs. This is particularly relevant for system implementation. While much will be contingent Managing Director of Project Management with greater than 600km of burial. upon the manufacturing backlog of suppliers, accelerating time-to-market is possible given Ms. Debra Brask is Managing Director Factory Acceptance Tests are an integral the right circumstances and cooperative efforts of Project Management at Tyco aspect of time effective practices. Traditionally, between the supplier and purchaser. Telecommunications. She has been with purchasers request to witness factory testing on Tyco Telecommunications currently has reduced Tyco Telecommunications since June 1997. all products. All equipment is tested in the factory the interval for delivery of undersea fiber-optic In her current position, Ms. Brask manages and the results are provided to the purchaser. telecommunications systems from previous the company’s Project Management, Purchaser witnessed testing is traditionally a years; however, efficient up front planning Documentation and Training organization. repeat of a majority of these tests and can be between the supplier and purchaser continues Prior to joining Tyco Telecommunications, Ms. eliminated or minimized to one piece of each type to be the key item in reducing project risk during Brask held the position of Program Manager of equipment. The initial factory test results can be implementation. Permitting and cable station at Lucent Technologies where she managed compared to the customer witnessed re-run of the availability delays continue to be the two factors various Government Programs. tests, ensuring the product performs according that cause delays in the implementation of Prior to this, she held the position of Member to specifications. Purchaser confidence trials projects. of Technical Staff at Bell Laboratories. Ms. during manufacturing should also be eliminated Brask graduated with a Bachelors degree in to reduce the project interval. Overall, these Ceramic Engineering from Rutgers University measures can reduce the dry plant manufacturing in New Brunswick, New Jersey USA, a Masters interval by one month. of Engineering in Material Science and a Masters of Science in Technology Management Dry Plant commissioning focuses on each both from Stevens Institute of Technology in segment as the final splices are achieved and Hoboken, New Jersey USA. evolve into a parallel effort. Improvements in testing intervals can be achieved through the elimination of separate Purchaser Test Periods

Telecom Solutions... Anywhere.

www.wfnstrategies.com Engineering for submarine and terrestrial optical cable, microwave/WiMax, mobile, satellite and RF systems THE CABLESHIPS A global guide to the latest known locations of the world’s cableships*, as ot March 2006. Information Provided by Llyods List.

MOVE ARRIVAL SAILED SAILED MOVE ARRIVAL ARRIVAL SAILED LR NO VESSEL NAME TYPE DATE DATE DATE PORT NAME COUNTRY NAME TYPE DATE DATE EST DATE QUALIFIER QUALIFIER EST QUALIFIER

9100748 Wave Sentinel P W 3/15/2006 3/15/2006 Dover Strait United Kingdom

7382469 Salma P W 3/28/2006 3/28/2006 Dover Strait United Kingdom

7382469 Salma 3/26/2006 3/28/2006 Sheerness United Kingdom

7382469 Salma 3/18/2006 3/22/2006 Londonderry United Kingdom

9248100 Rene Descartes P E 4/23/2006 4/23/2006 Dover Strait United Kingdom

9215206 Maersk Responder 4/12/2006 4/13/2006 Rosyth United Kingdom

9215206 Maersk Responder 3/7/2006 3/18/2006 Tees United Kingdom

9207053 Maersk Recorder 4/19/2006 Falmouth United Kingdom

9207053 Maersk Recorder P W 4/18/2006 4/18/2006 Dover Strait United Kingdom

9207053 Maersk Recorder 3/28/2006 4/13/2006 Tees United Kingdom

8108676 Leon Thevenin 3/18/2006 Y A 3/25/2006 Y B Portland(GBR) United Kingdom

8108676 Leon Thevenin P W 3/18/2006 3/18/2006 Dover Strait United Kingdom

8108676 Leon Thevenin P W 3/13/2006 3/13/2006 Dover Strait United Kingdom

9230414 Polar Queen 4/24/2006 Dundee United Kingdom

9230414 Polar Queen 4/16/2006 Y A 4/24/2006 Y B continental shelf United Kingdom

9247053 Ile de Brehat P E 3/18/2006 3/18/2006 Dover Strait United Kingdom

9247053 Ile de Brehat P E 3/14/2006 3/14/2006 Dover Strait United Kingdom

9247053 Ile de Brehat P E 3/11/2006 3/11/2006 Dover Strait United Kingdom

6930520 Elektron 4/5/2006 4/6/2006 Buckie United Kingdom

6930520 Elektron 4/4/2006 4/4/2006 Tyne United Kingdom

* Over 1000 tons MOVE ARRIVAL SAILED SAILED MOVE ARRIVAL ARRIVAL SAILED LR NO VESSEL NAME TYPE DATE DATE DATE PORT NAME COUNTRY NAME TYPE DATE DATE EST DATE QUALIFIER QUALIFIER EST QUALIFIER 6930520 Elektron 4/3/2006 4/3/2006 Buckie United Kingdom

6930520 Elektron 3/25/2006 Y A 3/29/2006 Y B Liverpool United Kingdom

6930520 Elektron 3/24/2006 3/25/2006 Ellesmere Port United Kingdom

8813910 Discovery 4/23/2006 4/24/2006 Aberdeen(GBR) United Kingdom

8813910 Discovery 4/17/2006 Y A 4/23/2006 Y B continental shelf United Kingdom

8813910 Discovery 4/17/2006 4/17/2006 Lerwick United Kingdom

8813910 Discovery 4/1/2006 Y A 4/17/2006 Y B continental shelf United Kingdom

8813910 Discovery 3/31/2006 4/1/2006 Peterhead United Kingdom

8918629 C.S.Sovereign P W 4/2/2006 4/2/2006 Dover Strait United Kingdom

7382469 Salma P E 4/21/2006 4/21/2006 Gibraltar Gibraltar

9248100 Rene Descartes P W 3/21/2006 3/21/2006 Gibraltar Gibraltar

9183867 Geo Maru P W 3/14/2006 3/14/2006 Gibraltar Gibraltar

9227754 Geomaster 3/16/2006 3/16/2006 Gibraltar Gibraltar

7619458 Bourbon Skagerrak 3/18/2006 3/24/2006 Y B Den Helder Netherlands

8813910 Discovery 4/30/2006 Amsterdam Netherlands

8813910 Discovery 3/21/2006 3/29/2006 Amsterdam Netherlands

9199854 Team Oman P N 4/7/2006 4/7/2006 Port Said Arab Republic of Egypt

9227754 Geomaster P N 3/7/2006 3/7/2006 Port Said Arab Republic of Egypt

9207053 Maersk Recorder 3/9/2006 Y A 3/14/2006 Y B Luanda Angola

9236494 Tycom Reliance 4/17/2006 Charleston United States of America

9019602 Teneo 3/24/2006 3/28/2006 Portsmouth(NH USA) United States of America

9231535 Normand Cutter 4/11/2006 4/12/2006 Mobile United States of America

9236200 Normand Clipper 3/10/2006 Galveston United States of America

9215218 Maersk Reliance 3/27/2006 4/2/2006 Mobile United States of America

9215218 Maersk Reliance 3/10/2006 3/21/2006 Mobile United States of America

8900866 Global Sentinel 4/27/2006 Portland(OR USA) United States of America

9105889 Teliri 4/21/2006 4/21/2006 Augusta Italy

9105889 Teliri 4/10/2006 4/21/2006 Y B Catania Italy MOVE ARRIVAL SAILED SAILED MOVE ARRIVAL ARRIVAL SAILED LR NO VESSEL NAME TYPE DATE DATE DATE PORT NAME COUNTRY NAME TYPE DATE DATE EST DATE QUALIFIER QUALIFIER EST QUALIFIER 9105889 Teliri 4/6/2006 4/7/2006 Genoa Italy

9105889 Teliri 3/29/2006 3/29/2006 Catania Italy

9105889 Teliri 3/28/2006 3/28/2006 Augusta Italy

9105889 Teliri 3/10/2006 3/27/2006 Catania Italy

9105889 Teliri 3/7/2006 3/10/2006 Y B Catania Italy

9199854 Team Oman 4/15/2006 Naples Italy

9248100 Rene Descartes 3/14/2006 3/14/2006 Catania Italy

8302014 Giulio Verne 4/6/2006 Genoa Italy

6514974 Certamen 3/29/2006 3/29/2006 Catania Italy

6514974 Certamen 3/10/2006 3/10/2006 Augusta Italy

9242352 Tyco Dependable 4/7/2006 4/9/2006 Wakamatsu Japan

9207065 Fu Hai 4/27/2006 4/29/2006 Wakamatsu Japan

9017824 KDD Pacific Link 4/28/2006 Moji Japan

9017824 KDD Pacific Link 3/13/2006 Y A 4/26/2006 Moji Japan

9017824 KDD Pacific Link 3/13/2006 4/26/2006 Y B Wakamatsu Japan

9017070 KDD Ocean Link 4/24/2006 Yokohama Japan

9017070 KDD Ocean Link 3/30/2006 4/4/2006 Yokohama Japan

9017070 KDD Ocean Link 3/9/2006 3/15/2006 Yokohama Japan

8027808 Wave Mercury 3/20/2006 3/22/2006 Yokohama Japan

9009310 Badaro 3/28/2006 4/3/2006 Masan Republic of Korea

9247039 Ile de Sein 3/16/2006 3/18/2006 Kuwait Kuwait

9183867 Geo Maru 3/9/2006 3/9/2006 Valletta Malta

7619458 Bourbon Skagerrak P 3/7/2006 3/7/2006 Malta Malta

9215206 Maersk Responder 3/20/2006 3/24/2006 Kalundborg Denmark

9215206 Maersk Responder P S 3/20/2006 3/20/2006 Skaw Denmark

9207053 Maersk Recorder 3/14/2006 3/14/2006 Kalundborg Denmark

6930520 Elektron 4/8/2006 4/8/2006 Kalundborg Denmark

6930520 Elektron 3/8/2006 3/9/2006 Frederikshavn Denmark MOVE ARRIVAL SAILED SAILED MOVE ARRIVAL ARRIVAL SAILED LR NO VESSEL NAME TYPE DATE DATE DATE PORT NAME COUNTRY NAME TYPE DATE DATE EST DATE QUALIFIER QUALIFIER EST QUALIFIER 9248100 Rene Descartes 4/11/2006 4/20/2006 Brest France

9248100 Rene Descartes 3/24/2006 4/1/2006 Brest France

8108676 Leon Thevenin 4/24/2006 Brest France

8108676 Leon Thevenin 3/25/2006 4/14/2006 Brest France

8108676 Leon Thevenin 3/16/2006 3/18/2006 Y B Calais France

8108676 Leon Thevenin 3/13/2006 3/13/2006 Calais France

9247053 Ile de Brehat 3/28/2006 Brest France

8936645 Sarku Clementine 3/31/2006 4/2/2006 Kemaman Malaysia

9205720 Skandi Neptune 4/15/2006 Halden Norway

9205720 Skandi Neptune 4/1/2006 4/1/2006 Stavanger Norway

7229502 Pleijel 3/21/2006 3/21/2006 Drammen Norway

9207053 Maersk Recorder 3/15/2006 3/26/2006 Arendal Norway

7619458 Bourbon Skagerrak 3/24/2006 3/27/2006 Halden Norway

8416889 Fjordkabel 3/9/2006 3/9/2006 Harstad Norway

6930520 Elektron 4/9/2006 4/9/2006 Drammen Norway

6930520 Elektron 3/29/2006 3/29/2006 Drammen Norway

6930520 Elektron 3/14/2006 3/21/2006 Kristiansand Norway

9063287 Cable Retriever 3/20/2006 3/29/2006 Y B Batangas Philippines

9063287 Cable Retriever 3/7/2006 3/20/2006 Y B Batangas Philippines

9063275 Asean Restorer 4/8/2006 4/22/2006 Y B Batangas Philippines

7382469 Salma 4/9/2006 4/12/2006 T Aveiro Portugal

9205720 Skandi Neptune 3/26/2006 3/26/2006 St. Michael’s Portugal

9231535 Normand Cutter 4/23/2006 4/23/2006 St. Michael’s Portugal

9248100 Rene Descartes 3/13/2006 3/13/2006 Kalamata Greece

8104199 Raymond Croze 4/5/2006 4/5/2006 Kalamata Greece

8104199 Raymond Croze 3/28/2006 3/28/2006 Kalamata Greece

7424786 DP Reel 3/14/2006 3/14/2006 Abidjan Ivory Coast

7424786 DP Reel 3/9/2006 3/9/2006 Abidjan Ivory Coast MOVE ARRIVAL SAILED SAILED MOVE ARRIVAL ARRIVAL SAILED LR NO VESSEL NAME TYPE DATE DATE DATE PORT NAME COUNTRY NAME TYPE DATE DATE EST DATE QUALIFIER QUALIFIER EST QUALIFIER 9242376 Tyco Durable 4/7/2006 4/7/2006 Singapore Republic of Singapore

9242376 Tyco Durable 3/10/2006 4/7/2006 Y B Singapore Republic of Singapore

8936645 Sarku Clementine 3/21/2006 3/30/2006 Singapore Republic of Singapore

8506062 Trinity Supporter 4/15/2006 Singapore Republic of Singapore

8506062 Trinity Supporter 3/18/2006 4/15/2006 Y B Singapore Republic of Singapore

9063275 Asean Restorer 4/22/2006 Singapore Republic of Singapore

9063275 Asean Restorer 3/22/2006 4/4/2006 Singapore Republic of Singapore

7382469 Salma 4/24/2006 4/24/2006 Barcelona Spain

7382469 Salma 4/1/2006 4/4/2006 Corunna Spain

9248100 Rene Descartes P N 3/23/2006 3/23/2006 Cape Finisterre Spain

7342940 Newton P N 4/9/2006 4/9/2006 Cape Finisterre Spain

9207053 Maersk Recorder P N 3/9/2006 3/9/2006 Cape Finisterre Spain

9227754 Geomaster P N 3/18/2006 3/18/2006 Cape Finisterre Spain

7619458 Bourbon Skagerrak 3/13/2006 3/13/2006 Algeciras Spain

7619458 Bourbon Skagerrak P W 3/13/2006 3/13/2006 Tarifa Spain

8302014 Giulio Verne 3/17/2006 4/6/2006 Y B Algeciras Spain

7229502 Pleijel 3/24/2006 3/25/2006 Vesteras Sweden

7382469 Salma 4/12/2006 Y A 4/21/2006 Y B Casablanca Morocco

9247039 Ile de Sein 3/23/2006 Abu Dhabi United Arab Emirates

9247041 Ile de Batz A 4/23/2006 Fujairah Anch. United Arab Emirates

8819029 Niwa A 4/24/2006 4/24/2006 Fujairah Anch. United Arab Emirates

8027781 Peter Faber 3/18/2006 Chaguaramas Trinidad & Tobago

9242352 Tyco Dependable 4/12/2006 4/18/2006 Keelung Taiwan

8306591 Lodbrog 4/23/2006 Keelung Taiwan

8306591 Lodbrog 4/12/2006 4/18/2006 Keelung Taiwan

9017070 KDD Ocean Link 3/26/2006 3/26/2006 Keelung Taiwan

9017070 KDD Ocean Link 3/25/2006 3/25/2006 Keelung Taiwan

9017070 KDD Ocean Link 3/19/2006 3/19/2006 Keelung Taiwan Middle East above 3 options. If, for example, RTD is of option those segments of the route than there was MOVE ARRIVAL SAILED SAILED MOVE ARRIVALmum importanceARRIVAL to the buyer,SAILED then the new two or three years ago. TheLR oldestNO andVESSEL traditional NAME fiber opticTYPE route is DATE DATE DATE PORT NAME COUNTRY NAME TYPE DATE DATE EST DATE via the Middle East, using the systemsQUALIFIER of Flag additional optionQUALIFIER of routing via Russia,EST one QUALIFIERThe likely trend in prices of capacity on Euro9063 287Asia orCable SEA-ME-WE-3. Retriever 4/26/2006would assume, will be of great4/26/2006 interest. the route viaKeelung Russia and MongoliaTaiwan is very hard 9063287These Cabletwo Retrieversubmarine systems were im-3/29/2006 Future price movements, 4/1 by0/2006 nature, are of to predict. ThereKaohsiung are relatively fewTaiwan suppliers ca- mensely7347718 significantChamarel developments at their time3/21/2006course very difficult to predict. The USD 35 000 pable of provisioningCape Town end-to-endSouth circuitsAfrica and

of9 1construction.99854 Team They Oman are essentially branched 3/29/2006represents a small reduction 3on/29/2006 prices over the therefore the Adenintensity of competitionYemeni Republic is not as

systems9207065 designedFu Hai to provide connectivity to3/14/2006past 12 months.Y PriceA reduction4/25/2006 in the last year great as eitherShanghai of the other People’s routes. Republic The existence of China has been small compared with the annual re- of the other routes nevertheless should con- large9207065 numbers ofFu Haicountries en route. Ring pro-3/11/2006 3/14/2006 Qingdao People’s Republic of China tected submarine systems in other oceans of the duction of circa 50 % p.a. that has been recorded tinue to act as a downward pressure on prices 9017070 KDD Ocean Link 4/4/2006 Y A 4/24/2006 Y B Shanghai People’s Republic of China world were developed later and neither Flag nor over previous years. We can but hope that prices on the shortest route. 7382469 Salma 3/9/2006 3/10/2006 Klaipeda Republic of Lithuania SMW-3 are, in themselves, ring systems. Resto- across the Atlantic, across continental USA and The growth of predicted traffic to China 5386411 Wartena 3/9/2006 3/10/2006 Kaliningrad Russian Federation ration of Flag and SMW-3 has to be created us- across the Pacific have now stabilised. As regards over the coming years is well known. Indeed ing support of capacity one from the other or the trends in prices on the route via the Middle China Telecom is pro-active in being a part of from other, less immense systems which paral- East, the prices of Europe-Asia capacity follow- this business, launching plans to develop busi- lel some of the route. ing that route have declined less dramatically ness in Europe by opening a new office in the The RTD is circa 230 ms. Prices are quoted over the previous five years yet we can see noth- UK. The company, which has already made by various suppliers, offering a range of prices ing to cause upward pressure on prices on that similar moves into the North American mar- normally at least double those via USA/trans- route. ket, is believed to be tracking corporate custom- Pacific option. Indeed, with new cables opening up be- ers with bases in Europe and China. It is obviously apparent that the buyer’s tween India and Singapore and onward to East- China Telecom was granted an operat- criteria will decide which route to use from the ern Asia, there is now a lot more competition ing licence in the US two years ago, enabling

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ForFor more information information contact contact [email protected] [email protected]. . notWarrior need just event another was Telecom still in conference. everyone’s We memory. need a It family gathering, where we draw the picture of our is for these reasons among others that STC (UK) community, and where we plan the future staying loyalrejected to our theroots. Alcatel‘s suggestion to come with a joint bid, to offer a “European” solution. I do hope the organiser of the coming event will stay on thatOne line. of Thethe success winning of Subopticfactors shouldhas been the Letter to a friend notPort-Botany be measured cableby the numberfactory. of Such attendees a factory only, was a Letter to a friend butstrong by their requirement quality-I mean from people OTC who (now have Telstra) and something to bring or something to learn- and the fromfrom JeanJean DevosDevos spreadthe ofAustralian them.-I mean Government. people from all around the world makingAlcatel a multicultural was the most event. motivated. The success Such of a Subopticfactory 07 could is a Tyco expand challenge, its influence but it is everyone’s in the Pacific job, because it is in everyone’s best interest. Eachwhere of us the should three feel other committed players to promote were historically this event,well and established do whatever in possiblethis region, to stimulate which therepresents attendance,a large partespecially of their from themarket. developing They world. saw this My dear friend, The organizers, but us also, needs to think “out of thefactory box”, and as work a risk out forinnovative their ideasexisting toward facilities! cost Suboptic: A Celebration even small, can afford to stay away from such a effectiveSubOptic solutions ‘87 in such Versailles as group came package, at the etc. right time. development. Access to broadband internet is now It is where the Australian teams discovered the It was a pleasure to see you at the Lisbon as vital as water supply or electricity. Most of these My friend, at the very end of our Lisbon dinner “Submarine Communications 2006” conference projectsand l’Astrolabe, are “governmental landed in“initiative, 1788 to sometimes discover that – wasFrench it due model, to the “vino a close verde” cooperation - you told me: between“I lastMy month. Dear I have enjoyed Friend our dinner on the river withCaptain the World Cook Bank was support. already Suboptic around 07 needsbearing the do Alcatelnot think and I’ll FT,attend exactly Suboptic what 07. they I don’t wanted see my to es- side where we discussed at length which great to show a new business culture: Our capabilities management approving this spending for a 3 days British flag. So Botany Bay is now for me the tablish in their country. personality,“Botany Bay” which big name it would be good to needs to serve the need of the global economy conference in Baltimore”. This statement is why I invite to Suboptic 07 in Baltimore next year. Three throughsymbol the of construction a dream which of an optimised becomes network a reality! am writingMy you friend, today. thingsTell your are management changed thatsince, but namesI published emerged recently among aothers: modest Bill novel, Clinton, whose Bill title accessibleTasman to everyone 2 has at beenfair conditions yet another .This ischapter our attendingone thing Suboptic stays is true: a must When for whoever you offer wants something, to Gates and Colin Powell. Somewhat more attractive duty! Such structure will serve a harmonised world play a role in our business whether Bill Gates is thanis Botany what we Bay. had It at is previous the place session: in Australia A narrow where development.in this long Suboptic Anglo-French 07 needs to competition!be the gathering The therethe or reader not! can see between the lines if you are minded politician in San Francisco,Alcatel an established hermetic a ofaward our community, to Alcatel bringing came peopleout as from a big really surprise all to or not genuinely motivated and sincere. Then philosopher in Kyoto and a lowsubmarine profile chairman cable fac- in aroundmany, the including world, including inside theAlcatel. most remote Everybody island, was Notyour attending offer is becomes like not celebrating really attractive Easter for anda this Monaco! We deserve somebody with a vision! from Svalbard to Tahiti! Catholic, or not going to the Mecca pilgrimage for a tory in 1989 as part of naturally expecting the British to win that bat- Muslim.opens As the simple route as tothat, “Botany an act of Bay.” faith! The underlined idea was that itsthe worldcontract needs foran the Suboptictle, and is sucha light an house expectation designed to was help at us thatat time sailing in the right direction. Our business stays So...See you next year in Jerusalem, I mean… optimised telecom infrastructure,Tasman a truly 2 link.global In this very logical. See you soon. network. Building such an infrastructure is a very specific in many ways and Suboptic must be Baltimore! mission. Each of these three leaderssame bay,could wherecredibly two based onThere such specificity. were so manyWe have difficultiesour culture, our and illustrate and endorse such a message.centuries Most before of the the language.misunderstanding What is our mission, between what isAustralia our role? and Jean Devos projects at this moment are designed to connect very How best can we serve? We need to review and French expedition France, the main one being the French presence JeanSubmarcom Devos Consulting remote countries or territories which were kept out analyse what is happening. We need to revisit some of the modern broad band network.“La Pérouse” No community, made of ofin our the procedures, Pacific area, some the of our worse behaviours. being the We nucleardo two ships, La Boussole bomb experiment in Tahiti! The sad Rainbow

45 44 UPCOMING CONFERENCES Diary AND EXHIBITIONS

Conference Date Venue www

www.oceans06ieeesingapore. Oceans 2006 Pacific 16-19 May 2006 Singapore org

Vancouver, British Columbia ICPC 2006 Plenary 16 - 18 May 2006 www.iscpc.org Canada

www.oceans06mtsieeeboston. Oceans 2006 North America 19-22 May 2006 Boston, Massachusetts USA org

www.terrapinn.com/2006/ Submarine Networks World 2006 3 - 6 Oct 2006 Singapore snw_sg

Offshore Communications 8-9 November 2006 Houston, Texas USA www.offshorecoms.com Conference 2006

OES Homeland Security 5-7 December 2006 Newport, Rhode Island USA www.oceanicengineering.org Technology Workshop 2006

ITU Telecom World 2006 4-8 December 2006 Hong Kong, China www.itu.int/world2006/

Issue 26 May 2006  Submarine Telecoms Forum Is Published Bi-Monthly by WFN Strategies, L.L.C

Issue 26 May 2006 Submarine Telecoms Forum Is Published Bi-Monthly by WFN Strategies, L.L.C