LANDMARK TH Finance & Legal 50 ISSUE ISSN 1948-3031 Submarine Telecoms Forum Is Published Bimonthly by WFN Strategies
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50 march Voice 2010 of the ISSN 1948-3031 Industry LaNDmarK Th Finance & Legal 50 ISSUE ISSN 1948-3031 Submarine Telecoms Forum is published bimonthly by WFN Strategies. The publication may not be reproduced or th transmitted in any form, in whole or in part, elcome to the landmark 50 issue of readers, as dial-up was still king! We also learned without the permission of the publishers. WSubmarine Telecoms Forum magazine, our that we could track the relative health of our Finance & Legal edition. industry by the number of undelivered emails Submarine Telecoms Forum is an independent com mercial publication, returned from recent laid off personnel – and we serving as a freely accessible forum for So much has changed since we started publishing saw bounce-back rates of 10% - 20% for each bi- professionals in industries connected with this magazine, especially in the submarine cable monthly issue throughout 2002. submarine optical fibre technologies and industry. We’ve seen an industry boom, a bust, Kevin Summers took over layouts after Ted techniques. and a recovery. We’ve seen the establishment of passed away suddenly in 2004, and soon began to new industry conferences, and the steadfastness Liability: while every care is taken in make his mark on SubTel Forum. Summers was preparation of this publication, the of SubOptic. And this month we celebrate the 50th both a graphic artist and professional author, a publishers cannot be held responsible for issue of Submarine Telecoms Forum. the accuracy of the information herein, or combination that eventually led to his taking over any errors which may occur in advertising Ted Breeze and I created SubTel Forum with the the editorship of the magazine in early 2009. or editorial content, or any consequence expressed mission of creating an international Other features and products were added along arising from any errors or omissions. forum for our submarine telecoms. At the time, the way: an RSS feed, an interactive website, a our industry was headed nose down into an The publisher cannot be held responsible submarine cable map, an annual calendar, and the for any views expressed by contributors, incredibly severe recession, and we felt that all of us industry’s first podcast. These were all designed to and the editor reserves the right to edit any would need a safe place to vent and converse and fulfill the mission we set out on way back in 2001: advertising or editorial material submitted strategize – we wanted our magazine to become to create an international forum for the expression for publication. the Voice of the Industry. In November 2001, Issue of ideas pertaining to our unique industry. Contributions are welcomed. Please 1 was rolled out to do just that. forward to the Managing Editor: Now, as we’ve reached our 50th issue, Our first issue contained articles scraped together please join the staff of SubTel Forum from industry leaders as well as a few new names; in saluting the many contributors PUBLISHER we called in all our chits from business friends and who have made our magazine a Wayne Nielsen former colleagues, sold a few adverts on “faith,” success. We hope you like the had our name blessed by SubOptic, and then Tel: +[1] 703 444 2527 updated look and feel, and look survived the malaise following September 11th. Ted Email: [email protected] forward to another fifty issues provided the layouts, dark humor and cigarettes, of speaking as the Voice of the while I begged and pleaded for copy. Industry. EDITOR So Issue 1 hit the virtual street, and then we Kevin G. Summers waited – for applause – for anger – for calls from Tel: +[1] 703 468 0554 the lawyers! And slowly our peers responded Email: [email protected] with thanks and even some praise. And we then learned what would become our biggest technical challenge for the next five years – that files over 2 Copyright © 2010 WFN Strategies 1 meg in size were too onerous for many of our Finance & In This Issue Legal Exordium 2 Broadband Stimulus 17 ENTELEC 2010 40 Wayne Nielsen Public Knowledge Amanda Prudden News Now 4 planning, paperwork, persistence 21 Letters to the Editor 45 and patience: The 4 p’s in U.S. Environmental permitting Can Commercial Banks Return 7 Virginia Hoffman Conferences 46 to the Submarine Cable Market? & Meredith Cleveland Glenn S. Gerstell Letter to a Friend 47 Landing The Honotua Cable 26 Jean Devos UNEp And The ICpC Bringing 12 Maui Sanford & John Hibbard Reason To The Environmental Impact Discussion Advertiser Index 48 Douglas Burnett & Lionel Carter Telegraphing a Tsunami 29 Morgan Heim Coda 49 Back Reflection 15 Kevin G. Summers Stewart Ash & Kaori Shikinaka project Donet 34 JAMSTEC© 3 News Now Australian Researchers’ 10Gbps FiberZone Selected By GlobeNet Global Nexus Obtains Bahamas links to US guaranteed to 2020 Operators License - New FLAG Submarine Cable Network Submarine Network will connect Chunghwa Telecom Says Still For Sale the Bahamas, Canada, Brazil, International Service Restored Cuba and the USA After Quake GBI to connect to lucrative Saudi Market Globe seeks new permit for EASSy cable finally lands in international cable landing station Mtunzini Global Crossing Upgrades in Cagaya Network Capacity to Meet EASSy Fibre Cable Finally Set For Growing Demand for Broadband Great Eastern Group Awarded Landing Service Multi-year US Naval Facilities Support Contract FCC Releases Public Notice Global Marine Systems Regarding Applications to announces Suriname Totness Gulf Bridge International (GBI) Connect Submarine Cables to Shore Landing of the Suriname signs with Batelco Cuba Guyana Submarine Cable System Gulf Bridge International and Oi?s GlobeNet and Alcatel- Pacnet Delivers Enhanced IPv6 DU sign cable landing and Lucent complete upgrade of 22,000 Services partnership agreement kilometer submarine network linking the Americas Pacnet Managed Services Wins IT Gulf Bridge International Sign Square Editors? Choice Award Agreement With Vodafone Qatar OMM team helps Lighthouse to Land GBI?s Submarine Cable R&D Enterprise Inc. add depth Pacnet to Convert Cable Landing in Qatar to deepwater with installation of Facilities Into World Class Data new seabed observatory Centers across Asia Honotua Cable Linking Tahiti to Hawaii Lands in Kawaihae Otelwelcomes EASSy Cable To South Africa Interoute extends pan- European fibre optic to Ireland OUR Extends Application for as international enterprise Submarine Fibre Optic Cable investment in the region grows Licences Main One submarine cable Pacific Fibre Submarine Cable project inches near completion Planned MTN bids for SAT-3 Pacnet Accelerates India Expansion with National and MTN satisfied with EASSy International Long Distance progress as cable lands in South Licenses Africa 5 6 can commercial Banks return to the Submarine cable market? 7 Glenn S. Gerstell ven a quick flip through the pages of that many sponsors and operators are planning Submarine Telecoms Forum or other industry – if not racing to complete – cable projects that Epublications makes clear that the subsea cable will inevitably compete with one another, further industry is in the midst of a rebound. The source confounding revenue projections for any system. of that rebound is equally apparent: the explosive growth of the Internet and the desire to replicate Ironically, the growth in the subsea cable sector that growth in the heavily populated countries of comes at a time when commercial banks are the Third World. Surprisingly, those very factors slowly staggering out of a recession and are are now creating difficulties in planning and greatly curtailing lending to anything other than financing for new submarine cable systems. highly creditworthy borrowers. Needless to say, submarine cable projects – with memories As the industry increasingly moves into Africa of the industry’s collapse several years ago not and focuses on regional systems elsewhere quite erased, and with new projects subject to the connecting, for example, Caribbean islands or revenue uncertainties noted above – will not fall countries in Southeast Asia, two consequences into that highly creditworthy category! ensue that spell difficulty. First, obviously enough, building cables in the Third World is more likely Capital expenditures continue apace in the to present construction challenges, permitting and industry and commercial banks will somehow licensing obstacles and cost overruns. Second, have to play a role in funding those expenditures. and potentially more worrisome, is the fact that The cable industry is on track by some estimates to revenue traffic projections are inherently uncertain spend over $3 billion over the next three years with in these markets with little history of broadband a record 16 new cables placed into service this past connectivity, or indeed any significant telecoms year throughout the world. Cable system owners, penetration. This uncertainty affects planning for all telecom operators and some other service providers sorts of subsea projects – from the consortia model are intent on meeting demands for international to the investor owned cable system. Predicting data and voice transmission (engendered primarily demand is always tricky in any scenario, but the by the explosion of web-based video, voice and problem is compounded where there is so little date and multimedia-centric websites). The data from which to extrapolate and make revenue recent completion of the SEACOM cable and the projections. For instance, a commercial lender anticipated installation of the EASSy, Main One, looking to back a new trans-Atlantic cable can and Glo-1 cables in Africa are testimony to the fact assess a borrower’s “base case” by comparing it to that the development (and lending) “action” has traffic on other existing cables or derive estimates in part shifted to Africa and other countries with with some degree of confidence from telecom/ low internet penetration. In fact, there are several Internet usage and connection rates in what are new cables planned for the Caribbean, the Middle clearly more developed markets.