Executive Telecom Briefings, Boston University, December 12, 2006 An Overview ofInternational An Overview ofInternational Submarine Cable Markets Submarine Cable Markets Managing Director Managing Director Terabit Consulting Terabit Consulting www.terabitconsulting.com www.terabitconsulting.com Michael Ruddy Michael Ruddy Presented by: Presented by: Executive Telecom Briefings, Boston University, December 12, 2006 Importance of UnderseaCable Importance of UnderseaCable Part I:Understanding the Part I:Understanding the Networks Networks www.terabitconsulting.com www.terabitconsulting.com 6 6 SubmarineSubmarine CableCable AdvantagesAdvantages
RelativelyRelatively lowlow costcost (well(well underunder $1$1 billionbillion forfor aa multimulti--terabitterabit transoceanictransoceanic ringring system)system) on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 EnormousEnormous carryingcarrying capacitycapacity (existing(existing transoceanictransoceanic networksnetworks capablecapable ofof 7+7+ TbpsTbps)) HighHigh reliabilityreliability (especially(especially inin ringring andand meshmesh configurations)configurations) andand lowlow latencylatency Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 3 www.terabitconsulting.com 6 6 TheThe FoundationFoundation ofof GlobalGlobal NetworkingNetworking
TrulyTruly thethe backbonebackbone ofof
US International Circuits thethe globalglobal telecomtelecom by Transmission Medium, 2006 andand datadata networknetwork 19% Undersea HaveHave beenbeen thethe on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 1% preferred int’l. Satellite preferred int’l. transmissiontransmission mediummedium Terrestrial (Can.+Mex.) sincesince shortlyshortly afterafter thethe 80% adventadvent ofof thethe fiberfiber opticoptic cablecable inin thethe latelate-- Source: FCC, Terabit Consulting Analysis 1980s1980s Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 4 www.terabitconsulting.com Executive Telecom Briefings, Boston University, December 12, 2006 Part II:ABrief Historyof Part II:ABrief Historyof Fiber OpticCable Fiber OpticCable Submarine Submarine www.terabitconsulting.com www.terabitconsulting.com Markets Markets 6 6 2020 TurbulentTurbulent YearsYears
TheThe firstfirst fiberfiber opticoptic cablescables werewere deployeddeployed inin EuropeEurope andand JapanJapan inin thethe midmid--1980s1980s –– RepeateredRepeatered andand unrepeateredunrepeatered –– ExperimentalExperimental (shark(shark bitesbites werewere aa problem!)problem!) on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 FirstFirst transoceanictransoceanic fiberfiber opticoptic cablecable == TATTAT--88 –– RFSRFS == 19881988 –– Cost:Cost: $360$360 millionmillion –– Capacity:Capacity: 560560 MbpsMbps (3(3 STMSTM--1s);1s); “3R”“3R” repeatersrepeaters –– ConsortiumConsortium ofof 3535 carrierscarriers (AT&T(AT&T == 35%)35%) –– PointPoint--toto--PointPoint Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 6 www.terabitconsulting.com 6 6 2020 TurbulentTurbulent YearsYears (Cont’d.)(Cont’d.)
FirstFirst “Private”“Private” cablecable == PTATPTAT--11 (1991)(1991) ––SprintSprint andand CableCable && WirelessWireless ––NYNEXNYNEX prohibitedprohibited fromfrom participatingparticipating on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 byby JudgeJudge HaroldHarold GreeneGreene FLAGFLAG (1997):(1997): AA privateprivate cablecable onon aa quintessentiallyquintessentially consortiumconsortium routeroute (Europe(Europe--Asia)Asia) ––NYNEXNYNEX getsgets toto havehave aa cable,cable, finallyfinally Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 7 www.terabitconsulting.com 6 6 2020 TurbulentTurbulent YearsYears (Cont’d.)(Cont’d.)
TheThe turningturning point:point: AtlanticAtlantic CrossingCrossing--11 (1998)(1998) ––AT&TAT&T outsourcesoutsources cablecable toto investorsinvestors on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 ––PerfectPerfect timing:timing: InternetInternet boomboom andand liberalizationliberalization (especially(especially inin EU);EU); proliferationproliferation ofof competitivecompetitive operators;operators; incumbentsincumbents caughtcaught shortshort--handedhanded GlobalGlobal CrossingCrossing goesgoes globalglobal DozensDozens ofof imitatorsimitators floodflood thethe marketmarket Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 8 www.terabitconsulting.com 6 6 SubmarineSubmarine CableCable Landscape:Landscape: 20002000
GlobalGlobal CrossingCrossing 360networks360networks FLAGFLAG on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 TycoTyco LevelLevel 33 Singtel/C2CSingtel/C2C Others:Others: TelefonicaTelefonica,, CableCable andand Wireless,Wireless, Telstra/Reach,Telstra/Reach, TCNZTCNZ (Consortia?(Consortia? WhatWhat consortia?)consortia?) Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 9 www.terabitconsulting.com 6 6 CableCable Capital:Capital: 19951995 on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 10 www.terabitconsulting.com 6 6 CableCable Capital:Capital: 20002000 on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 11 www.terabitconsulting.com 6 6 TheThe BubbleBubble Burst:Burst: 20012001--20022002
Bankruptcy, June 2001 360atlantic sold to Columbia Ventures
Bankruptcy, January 2002 Purchase by Singapore Technologies on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 Bankruptcy, April 2002 Sale to Reliance Group
Sale of assets to Reach Reach (Telstra, PCCW) written down
Bankruptcy, July 2002
Bankruptcy, November 2002 Sale to China Netcom Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 12 www.terabitconsulting.com 6 6 InvestmentInvestment inin NewNew UnderseaUndersea Systems,Systems, 19881988--20062006 ($Billions; By Ready-for-Service Date)
$14 1998: AC-1 $12 1997: FLAG $10 R
E B
O A on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 Early- and N $8 R Mid-1990s: G K 1988 = 1st N A R Consortium O N U I $6 I P Transoceanic T Z Era T A A Fiber Optic C L T Y U I $4 , Cable C O E N P $2 S
$0 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 13 www.terabitconsulting.com 6 6 WhatWhat WentWent Wrong?Wrong?
NotNot enoughenough customerscustomers forfor capacity:capacity: – CLECs couldn’t survive; RBOCs dominated local loop and consolidated BroadbandBroadband deploymentdeployment nevernever metmet expectationsexpectations (penetration(penetration remainedremained lowlow andand pricesprices remainedremained on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 highhigh worldwide)worldwide) DemandDemand forfor underseaundersea capacitycapacity isis notnot veryvery elastic?!elastic?! – Consumers’ voice minutes went up when capacity prices dropped, but voice was only a few percent of total traffic – Otherwise, cable operators could cut prices all they wanted, but carriers still wouldn’t buy Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 14 www.terabitconsulting.com 6 6 UnableUnable toto SellSell Capacity,Capacity, thethe IndustryIndustry UnravelsUnravels CableCable operators’operators’ bankruptciesbankruptcies setset offoff downwarddownward spiralspiral DistressedDistressed assetsassets werewere acquiredacquired forfor on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 penniespennies onon thethe dollardollar –– ImpossibleImpossible toto competecompete withwith PricePrice erosionerosion ofof 70%70% onon somesome routesroutes Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 15 www.terabitconsulting.com 6 6 PostPost--2002:2002: AA BadlyBadly--BeatenBeaten MarketMarket
MarketMarket fellfell fromfrom $10+$10+ billionbillion perper yearyear toto onlyonly aa fewfew hundredhundred million,million, maximummaximum InvestorsInvestors inin southsouth AsiaAsia andand easteast AsiaAsia on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 steppedstepped inin toto purchasepurchase globalglobal networksnetworks atat penniespennies onon thethe dollardollar YearsYears passedpassed withwith virtuallyvirtually nono activityactivity (shuttered(shuttered cablecable factories,factories, etc.)etc.) Eventually,Eventually, somesome normalcynormalcy returned…returned… Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 16 www.terabitconsulting.com Executive Telecom Briefings, Boston University, December 12, 2006 Part III:Recovery and Part III:Recovery and Market Trends Market Trends www.terabitconsulting.com www.terabitconsulting.com 6 6 SomeSome ReasonReason forfor OptimismOptimism
ManyMany newnew systemssystems areare onon thethe horizonhorizon IndiaIndia andand ChinaChina == fuelingfueling demanddemand throughthrough economiceconomic growth;growth; injectinginjecting cablecable marketmarket withwith capitalcapital – Latest wave of deployment started with Sea-Me-We-4, on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 Falcon SpeculationSpeculation seemsseems toto havehave disappeareddisappeared fromfrom thethe marketmarket – If for no other reason than: Wall St. won’t allow it CableCable operatorsoperators areare ofof aa differentdifferent qualityquality andand areare approachingapproaching thethe marketmarket withwith moremore diligencediligence CapacityCapacity isis comingcoming toto developingdeveloping marketsmarkets oneone wayway oror anotheranother ((IFIsIFIs,, ReRe--lays)lays) Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 18 www.terabitconsulting.com 6 6 TrendTrend #1:#1: GeographicGeographic ShiftShift inin InvestmentInvestment
InvestmentInvestment hashas shiftedshifted towardtoward SouthSouth AsiaAsia TwoTwo ofof thethe largestlargest ownersowners ofof submarinesubmarine cablecable networksnetworks areare inin IndiaIndia on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 –– RelianceReliance (FLAG)(FLAG) –– VSNLVSNL (Tyco)(Tyco) Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 19 www.terabitconsulting.com 6 6 InvestmentInvestment byby Region,Region, 19881988--20062006
100% South Asia and 90% Europe-Asia
80% Other 70%
60% Australia on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 50%
40% Latin America 30%
20% Transpacific and 10% East Asia 0% Transatlantic and 1988- 2002 2003 2004 2005 2006 Europe 2001
Source: Terabit Consulting Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 20 www.terabitconsulting.com 6 6 TrendTrend #2:#2: ShiftShift inin FinancingFinancing ofof CablesCables
ThereThere areare fewfew viableviable entrepreneurialentrepreneurial systemssystems inin thethe pipelinepipeline AlmostAlmost allall newnew cablecable systemssystems areare beingbeing on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 builtbuilt byby carrierscarriers Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 21 www.terabitconsulting.com 6 6 InvestmentInvestment byby Type,Type, 19881988--20062006
100%
80% Investor-Led (Speculative) 60% on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 Carrier-Owned 40%
20% Consortium 0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1988-1996
Source: Terabit Consulting Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 22 www.terabitconsulting.com 6 6 TrendTrend #3:#3: IncreaseIncrease inin InvestmentInvestment
CapacityCapacity demanddemand growthgrowth (in(in bitbit terms)terms) hashas remainedremained constantconstant PricePrice erosionerosion isis becomingbecoming moremore controlledcontrolled on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 andand capacitycapacity pricesprices havehave leveledleveled offoff RESULT:RESULT: ThereThere areare manymany viableviable systemssystems plannedplanned forfor thethe nextnext 33--44 yearsyears VeryVery optimisticoptimistic scenariosscenarios callcall forfor anan annualannual marketmarket ofof asas largelarge asas $3$3 billionbillion UpgradeUpgrade marketmarket isis extremelyextremely robustrobust Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 23 www.terabitconsulting.com 6 6 PlannedPlanned InvestmentInvestment
NewNew Systems:Systems: –– TranspacificTranspacific systemssystems (AAG,(AAG, TPE,TPE, JNAC,JNAC, etc.)etc.) –– II--MEME--WEWE (Consortium)(Consortium) on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 –– MTNLMTNL IndiaIndia--EuropeEurope –– VSNLVSNL SingaporeSingapore--HKHK--JapanJapan--GuamGuam –– BSNL/MTNLBSNL/MTNL IndiaIndia--SingaporeSingapore ($390($390 mil)mil) –– AfricanAfrican systemssystems ((EASSyEASSy,, WAFS,WAFS, KenyaKenya cable)cable) –– CaribbeanCaribbean Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 24 www.terabitconsulting.com 6 6 VSNLVSNL –– AggressiveAggressive StrategyStrategy
WillWill upgradeupgrade VSNLVSNL (TGN)(TGN) TranspacificTranspacific toto 11 TbpsTbps inin 20072007 August,August, 2006:2006: AnnouncedAnnounced plansplans forfor II--MEME-- WEWE asas wellwell asas aa panpan--AsianAsian SingaporeSingapore--HongHong on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 KongKong--GuamGuam--TokyoTokyo networknetwork (total(total investmentinvestment == severalseveral hundredhundred millionmillion dollars)dollars) EffectivelyEffectively closingclosing holesholes inin TGNTGN GlobalGlobal Network,Network, whichwhich itit acquiredacquired inin July,July, 20052005 forfor $130$130 millionmillion –– alsoalso purchasedpurchased TeleglobeTeleglobe inin 20062006 forfor $239$239 millionmillion Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 25 www.terabitconsulting.com 6 6 VerizonVerizon:: EmergingEmerging InternationalInternational Superpower?Superpower?
USUS landinglanding partyparty forfor thethe TransTrans--PacificPacific ExpressExpress SystemSystem (China(China--US)US) –– RFSRFS 2008;2008; $650$650 toto $800$800 mil.mil. on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 December,December, 2006:2006: announcedannounced creationcreation ofof aa meshmesh--basedbased transatlantictransatlantic networknetwork acrossacross sixsix geographicallygeographically--diversediverse pathspaths usingusing Ciena’sCiena’s CoreDirectorCoreDirector switchswitch AggressiveAggressive inin ChinaChina andand IndiaIndia –– PartneringPartnering withwith ChinaChina Telecom,Telecom, RelianceReliance Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 26 www.terabitconsulting.com 6 6 TrendTrend #4:#4: SubmarineSubmarine ConnectivityConnectivity inin thethe DevelopingDeveloping World,World, OneOne WayWay oror AnotherAnother
IFIsIFIs:: TheThe IFCIFC andand thethe EIBEIB areare participatingparticipating inin underseaundersea infrastructureinfrastructure projectsprojects on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 Military:Military: USUS DoDDoD isis consideringconsidering sponsoringsponsoring aa systemsystem thatthat wouldwould bringbring connectivityconnectivity toto thethe SouthSouth PacificPacific TheThe ReRe--Lay…Lay… Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 27 www.terabitconsulting.com 6 6 TheThe ReRe--LayLay
Issue:Issue: cables’cables’ economiceconomic lifespanlifespan gettinggetting shortershorter andand shortershorter Problem:Problem: LawLaw ofof thethe SeaSea (UNCLOS)(UNCLOS) on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 requiresrequires recoveryrecovery ofof inactiveinactive cablescables Solution:Solution: rere--laylay ofof cablecable onon long,long, thinthin routesroutes Examples:Examples: –– PacrimPacrim WestWest relayedrelayed asas APNGAPNG--22 –– segmentssegments ofof GeminiGemini maymay alsoalso bebe rere--layedlayed Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 28 www.terabitconsulting.com Executive Telecom Briefings, Boston University, December 12, 2006 Part IV:Conclusions Part IV:Conclusions www.terabitconsulting.com www.terabitconsulting.com 6 6 CONCLUSIONSCONCLUSIONS
TheThe industryindustry hashas learnedlearned manymany lessonslessons fromfrom thethe bubblebubble ofof thethe latelate--1990s1990s RecoveryRecovery seemsseems toto bebe takingtaking shapeshape on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 CablesCables areare beingbeing fundedfunded byby carrierscarriers ratherrather thanthan speculatorsspeculators InvestmentInvestment isis shiftingshifting towardtoward AsiaAsia DevelopingDeveloping marketsmarkets areare finallyfinally beingbeing addressedaddressed Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 30 www.terabitconsulting.com 6 6 AppendixAppendix
TRANSATLANTICTRANSATLANTIC CABLESCABLES on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 TRANSPACIFICTRANSPACIFIC CABLESCABLES
EUROPEEUROPE--ASIAASIA ANDAND SOUTHSOUTH ASIANASIAN CABLESCABLES Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 31 www.terabitconsulting.com 6 6 Transatlantic:Transatlantic: HistoricalHistorical CenterCenter ofof thethe IndustryIndustry on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 IC ANT SATL TRAN Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 32 www.terabitconsulting.com 6 6 TransatlanticTransatlantic Cables,Cables, YE06YE06
Design Capacity, Capacity Est. Investment Cable Name RFS Date Route Km (Gbps) (Gbps) Owner(s) ($Millions) Supplier(s) Columbus-2 1994 12,188 2 2 Consortium $345 AT&T-SSI (Tyco), Alcatel, Pirelli (Alcatel) on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 CANTAT-3 1994 7,500 5 5 Teleglobe (VSNL) $385 STC (Alcatel) TAT-12/TAT-13 1995 12,553 30 30 Consortium $750 Alcatel, AT&T-SSI (Tyco) Atlantic Crossing-1 (AC-1) 1998 14,000 140 140 Global Crossing (ST) $875 AT&T-SSI/TSSL (Tyco) Columbus-3 1999 10,000 20 40 Consortium $273 TSSL (Tyco), Alcatel, Pirelli (Alcatel) Yellow (Level-3) / Atlantic Crossing-2 (AC-2) 2000 6,960 320 1,280 Level 3, Global Crossing (ST) $700 TSSL (Tyco) Hibernia Atlantic 2001 11,700 220 1,920 Columbia Ventures $680 TSSL (Tyco) FLAG Atlantic-1 (FA-1) 2001 12,800 530 2,400 FLAG Telecom (Reliance) $750 Alcatel TAT-14 2001 15,000 640 640 Consortium $1,400 KDDI-SCS VSNL Transatlantic (Tyco) 2001 12,500 480 2,560 VSNL $900 Tyco Apollo 2003 13,000 320 3,200 Cable and Wireless $950 Alcatel Total: 11 Systems, 22.2% lit 128,201 2,707 12,217 7 operators plus consortia $8,008 Source: Terabit Consulting Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 33 www.terabitconsulting.com 6 6 Transpacific:Transpacific: FuelingFueling thethe AsianAsian TigersTigers on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 TRANSPACIFIC Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 34 www.terabitconsulting.com 6 6 TranspacificTranspacific Cables,Cables, YE06YE06
Design Capacity, Capacity Est. Investment on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 Cable Name RFS Date Route Km (Gbps) (Gbps) Owner(s) ($Millions) Supplier(s) TPC-5 1995 22,560 20 20 Consortium $1,240 AT&T-SSI (Tyco), KDDI-SCS Pacific Crossing-1 (PC-1) 1999 13,076 180 640 Pacific Crossing Ltd. $1,350 TSSL (Tyco) China-US Cable Network 2000 30,800 80 80 Consortium $1,400 Alcatel, Fujitsu, KDDI-SCS, NEC, TSSL (Tyco) Japan-US Cable Network 2001 21,000 400 640 Consortium $1,150 Alcatel, Fujitsu, NEC, KDDI-SCS VSNL Transpacific (Tyco) 2002 24,100 640 7,680 VSNL $900 Tyco Total: 5 Systems, 14.6% lit 111,536 1,320 9,060 2 operators plus consortium $6,040
Source: Terabit Consulting Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 35 www.terabitconsulting.com 6 6 SouthSouth AsiaAsia –– TheThe Industry’sIndustry’s HotHot SpotSpot on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200
SOUTH ASIA Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 36 www.terabitconsulting.com 6 6 SouthSouth AsianAsian Cables,Cables, YE06YE06
Design Capacity, Capacity Est. Investment Cable Name RFS Date Route Km (Gbps) (Gbps) Owner(s) ($Millions) Supplier(s) on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 Sea-Me-We-2 1994 18,000 1 1 Consortium $780 AT&T-SSI (TyCom), STC (Alcatel), Pirelli. FLAG (Fiberoptic Link Around the Globe) 1997 27,763 10 20 FLAG Telecom (Reliance) $1,600 AT&T-SSI (TyCom), KDD-SCS Sea-Me-We-3 1999 39,000 58 80 Consortium $1,300 Fujitsu, Alcatel, KDD-SCS, TSSL (TyCom), Pirelli i2i (ISCN) 2002 3,200 160 8,400 Bharti Group, Singtel $259 Alcatel, Fujitsu SAT-3/WASC/SAFE (South Atlantic-3/West Afr 2002 27,850 30 120 Consortium $581 Alcatel, TyCom Tata Indicom Chennai-Singapore (TICSCS) 2004 3,100 320 3,175 Tata (VSNL) $96 Tyco Sea-Me-We-4 2006 20,000 160 1,280 Consortium $500 Alcatel, Fujitsu Falcon 2006 10,300 90 2,560 FLAG Telecom (Reliance) $270 Alcatel Total: 8 systems, 5.3% lit 149,213 829 15,636 $5,386
Source: Terabit Consulting Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 37 www.terabitconsulting.com 6 6 ThankThank You!You!
MichaelMichael RuddyRuddy TerabitTerabit Consulting,Consulting, Inc.Inc. FirstFirst StreetStreet CenterCenter on University, Decemberon University, 12, 200 on University, Decemberon University, 12, 200 245245 FirstFirst Street,Street, 1818th FloorFloor Cambridge,Cambridge, MassachusettsMassachusetts 0214202142 USAUSA Tel.:Tel.: +1+1 (617)(617) 444444--86058605 Fax:Fax: +1+1 (617)(617) 444444--84058405 Email:Email: [email protected]@terabitconsulting.com http://http://www.terabitconsulting.comwww.terabitconsulting.com Executive Telecom Briefings, Bost Telecom Briefings, Executive Executive Telecom Briefings, Bost Telecom Briefings, Executive 38 www.terabitconsulting.com