[99455] in North American Network Operators' Group
RE: New TransPacific Cable Projects:
daemon@ATHENA.MIT.EDU (Rod Beck)
Sat Sep 22 05:27:27 2007
Date: Sat, 22 Sep 2007 10:26:23 +0100
From: "Rod Beck" <Rod.Beck@hiberniaatlantic.com>
To: <deepak@ai.net>, "nanog list" <nanog@merit.edu>
Errors-To: owner-nanog@merit.edu
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It is not obvious to me that there is a Pacific cable capacity glut. For =
example, I sold a DS3 from LA to Hong Kong for $6K MRC whereas the last =
time a wholesale TransAtlantic DS3 rivaled that figure was 2001.
Now you could argue that one needs to look at pricing on a =
mileage-adjusted basis since the typical TransPacific cable spans a much =
greater distance than its TransAtlantic counterpart.=20
But operating costs are not proportional to mileage - the bulk of your =
operating expense is what you pay the undersea maintenance companies =
such as Global Marine and Tyco Submarine and Alcatel. And their annual =
charges are not very sensitive to distance.=20
What is peculiar about the Pacific is the lack of new products. For =
example, it's extremely difficult to get any Ethernet transport on many =
routes such as LA/Sydney or into India.=20
Yes, there is some Ethernet/IP junk, but that doesn't meet most of my =
clients' performance standards. It is IP masquerading as Ethernet.=20
In fact, it is very difficult to find Packet-over-SDH Ethernet even on =
the all-important LA/HK route.=20
To sum up, I do believe the median Pacific cable enjoys a substantial =
margin advantage over the median Atlantic=20
There is only TransAtlantic cable that is particularly well right now, =
largely due to its unique physical diversity and footprint. =20
Roderick S. Beck
Director of EMEA Sales
Hibernia Atlantic
1, Passage du Chantier, 75012 Paris
http://www.hiberniaatlantic.com
Wireless: 1-212-444-8829.=20
Landline: 33-1-4346-3209.
French Wireless: 33-6-14-33-48-97.
AOL Messenger: GlobalBandwidth
rod.beck@hiberniaatlantic.com
rodbeck@erols.com
``Unthinking respect for authority is the greatest enemy of truth.'' =
Albert Einstein.=20
-----Original Message-----
From: owner-nanog@merit.edu on behalf of Deepak Jain
Sent: Sat 9/22/2007 12:44 AM
To: nanog list
Subject: New TransPacific Cable Projects:
=20
This is what happens when I stay late at the office on a Friday.
http://www.commsday.com/node/186 - Google participating in a new=20
Transpacific Cable Project
http://www.networkworld.com/news/2006/121806-verizon-business.html -=20
Verizon on a different transpacific project
And all the same articles say there is already an overpriced glut of=20
capacity along these routes and a glut of fiber laying ocean vessels.
Good times. Rather than having competition, everyone is just building=20
their own routes that they won't share at wholesale prices to folks in=20
the wholesale buying business. :)
Ahh... reminds me of the late 90s when everyone was building dark fiber=20
networks for the surge of demand that was coming. Now, the remaining=20
folks are buying up all the unused bits to constrain capacity.
If I were a stakeholder in transpacific cables, I'd be leasing up the=20
next 3-6 years of the entire global cable laying fleet. :)
Deepak Jain
AiNET
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<TITLE>RE: New TransPacific Cable Projects:</TITLE>
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<P><FONT SIZE=3D2>It is not obvious to me that there is a Pacific cable =
capacity glut. For example, I sold a DS3 from LA to Hong Kong for $6K =
MRC whereas the last time a wholesale TransAtlantic DS3 rivaled that =
figure was 2001.<BR>
<BR>
Now you could argue that one needs to look at pricing on a =
mileage-adjusted basis since the typical TransPacific cable spans a much =
greater distance than its TransAtlantic counterpart.<BR>
<BR>
But operating costs are not proportional to mileage - the bulk of your =
operating expense is what you pay the undersea maintenance companies =
such as Global Marine and Tyco Submarine and Alcatel. And their annual =
charges are not very sensitive to distance.<BR>
<BR>
What is peculiar about the Pacific is the lack of new products. For =
example, it's extremely difficult to get any Ethernet transport on many =
routes such as LA/Sydney or into India.<BR>
<BR>
Yes, there is some Ethernet/IP junk, but that doesn't meet most of my =
clients' performance standards. It is IP masquerading as Ethernet.<BR>
<BR>
In fact, it is very difficult to find Packet-over-SDH Ethernet even on =
the all-important LA/HK route.<BR>
<BR>
To sum up, I do believe the median Pacific cable enjoys a substantial =
margin advantage over the median Atlantic<BR>
<BR>
There is only TransAtlantic cable that is particularly well right now, =
largely due to its unique physical diversity and footprint. <BR>
<BR>
Roderick S. Beck<BR>
Director of EMEA Sales<BR>
Hibernia Atlantic<BR>
1, Passage du Chantier, 75012 Paris<BR>
<A =
HREF=3D"http://www.hiberniaatlantic.com">http://www.hiberniaatlantic.com<=
/A><BR>
Wireless: 1-212-444-8829.<BR>
Landline: 33-1-4346-3209.<BR>
French Wireless: 33-6-14-33-48-97.<BR>
AOL Messenger: GlobalBandwidth<BR>
rod.beck@hiberniaatlantic.com<BR>
rodbeck@erols.com<BR>
``Unthinking respect for authority is the greatest enemy of truth.'' =
Albert Einstein.<BR>
<BR>
<BR>
<BR>
-----Original Message-----<BR>
From: owner-nanog@merit.edu on behalf of Deepak Jain<BR>
Sent: Sat 9/22/2007 12:44 AM<BR>
To: nanog list<BR>
Subject: New TransPacific Cable Projects:<BR>
<BR>
<BR>
<BR>
This is what happens when I stay late at the office on a Friday.<BR>
<BR>
<A =
HREF=3D"http://www.commsday.com/node/186">http://www.commsday.com/node/18=
6</A> - Google participating in a new<BR>
Transpacific Cable Project<BR>
<BR>
<A =
HREF=3D"http://www.networkworld.com/news/2006/121806-verizon-business.htm=
l">http://www.networkworld.com/news/2006/121806-verizon-business.html</A>=
-<BR>
Verizon on a different transpacific project<BR>
<BR>
<BR>
And all the same articles say there is already an overpriced glut of<BR>
capacity along these routes and a glut of fiber laying ocean =
vessels.<BR>
<BR>
Good times. Rather than having competition, everyone is just =
building<BR>
their own routes that they won't share at wholesale prices to folks =
in<BR>
the wholesale buying business. :)<BR>
<BR>
Ahh... reminds me of the late 90s when everyone was building dark =
fiber<BR>
networks for the surge of demand that was coming. Now, the remaining<BR>
folks are buying up all the unused bits to constrain capacity.<BR>
<BR>
If I were a stakeholder in transpacific cables, I'd be leasing up =
the<BR>
next 3-6 years of the entire global cable laying fleet. :)<BR>
<BR>
Deepak Jain<BR>
AiNET<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
</FONT>
</P>
</BODY>
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<P><FONT face=3DArial size=3D2>This e-mail and any attachments thereto =
is intended only for use by the addressee(s) named herein and may be =
proprietary and/or legally privileged. If you are not the intended =
recipient of this e-mail, you are hereby notified that any =
dissemination, distribution or copying of this email, and any =
attachments thereto, without the prior written permission of the sender =
is strictly prohibited. If you receive this e-mail in error, please =
immediately telephone or e-mail the sender and permanently delete the =
original copy and any copy of this e-mail, and any printout thereof. All =
documents, contracts or agreements referred or attached to this e-mail =
are SUBJECT TO CONTRACT. The contents of an attachment to this e-mail =
may contain software viruses that could damage your own computer system. =
While Hibernia Atlantic has taken every reasonable precaution to =
minimize this risk, we cannot accept liability for any damage that you =
sustain as a result of software viruses. You should carry out your own =
virus checks before opening any =
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