[9766] in North American Network Operators' Group
Re: connectivity outside the US
daemon@ATHENA.MIT.EDU (Geoff Huston)
Sun Jun 1 03:16:56 1997
Date: Sun, 01 Jun 1997 17:09:28 +1000
To: Vadim Antonov <avg@pluris.com>
From: Geoff Huston <gih@telstra.net>
Cc: map@iphil.net, smd@clock.org, nanog@merit.edu
In-Reply-To: <199705311818.LAA03892@quest.pluris.com>
Undersea cable was expensive - the cable economics were geared to a return
on investment linked to a high investment risk and relatively slow uptake of the
cable,due to a linear phone growth model and an E1 cable transaction unit.
More recent cable projects have large increase in available capacity for essentially
the same project cost - which will trigger a steady decline in the lease price
once the large cables come on line.
Geoff
>
>Actually, i do not understand why undersea capacity is so
>expensive. Cable is more expensive, yes; but the paths
>are much straighter, and there's no need to purchase
>rights of ways (except for shore-side strips). There's
>no need to dig trenches -- you just drop the cable off the
>boat.
>
