Subsea Cables & Internet Infrastructure

Everyone at the conference wants to be Keppel. The carrier bought five fibre pairs on the 12 fibre pair Bifrost subsea network at construction cost and then sold them individually for a total of $1.2 billion dollars. This is a classic example of bandwidth arbitrage that has investors outside the industry salivating and has many Pacific wholesale carriers hoping to do the same thing in the future. Why do the heavy lifting of providing lit services when you can buy fibre pairs at construction cost and then flip them? What made Keppel so successful is that Bifrost was the first cable to directly link Asia's premier telecom hub, Singapore, to the US. And the fact that the hyperscalers kept the rest of the capacity for themselves. So Keppel ended up as the monopoly supplier of capacity to the entire wholesale market. So the moral is be the sole carrier partner on a sexy hyperscaler project and watch customers coming running to you with the enthusiasm of teenage girls at a Beatles concer...

Most African cables traverse the Congo Canyon as opposed to detouring around it. The canyon is not particular deep, but it is huge in terms of floor coverage. Depth varies from 1400 to 1600 meters. Le Trou Sans Fond canyon off Abidjan drops 2300 meters where the canyon meets the continental shelf. It is perfect recipe for sediment and debris avalanches.  These canyons were created by strong river currents that carve the ocean bottom and also deposit sediment. Debris and sediment slides can easily crush the older African cables lying at the bottom. In contrast, both Equiano and 2Africa are routed around these danger spots. That increases latency, but reduces outages. Sometimes African ISPs are short sighted in this matter. They take WACS despite the exorbitant costs and high likelihood of extended down time because it is a bit faster.  An interesting question is how long will WACS be worth operating given the accumulated optical loss from one or two outages each year. The more ...

My understanding is that standard practice is to slice a damaged cable in two prior to retrieval. Hard to lift a 14,530 kilometer cable otherwise. 😃

 National security analysts please note, there is no sabotage category because there are no credible cases of sabotage. The IPCC study estimates 3,224 subsea fibre optic cable repairs over the last 18 years. It classifies 84% of outages as caused by fishing and anchors, 5% due to abrasion, 4% due to plant failure (subsea optical amplifiers or PFEs), and 7% due to geological disturbances such as turbidity currents induced by earthquakes or heavy rains or debris slides in subterranean caverns. Abrasion often leads to shunt faults where water reaches the power conductor.

Probably not. Right now carriers are charging $7K to $9K per month for a 100G wave linking IColo1 and IColo2. This is the pricing of a cozy oligopoly, not a competitive market. Moreover, the carriers have inflated their costs by using brand name hardware when comparable products like Smart Optics offer 50% to 60% discounts on both the price tag and operating expenses (there is good Layer 1 networking gear with no recurring costs in the form of port activation fees or licensing). I can refer you to a smart optics VAR. In contrast, you can lease today recently manufactured dark fibre pairs between IColo 1 and IColo 2 for $1,100 per month for the 18 kilometer primary path and $1,400 for the 23 kilometer backup path. So for $2,500 a month on a 3 year contract you can get a fully diverse fibre ring between these two important data centers. Moreover, it is unlikely you need long range optics. Each fibre pair can do 10 to 20 terabits.

***Next year we should get 2Africa finally connected to Marseille. But the cost and hence pricing of those links will be relatively high because the consortium must pay and operate terrestrial bypass from either Djibouti or Mombasa to the Sudan 2Africa CLS. Market pricing will decline from current levels, but probably not as much as the majority expects. ***Many of you are over shopping. For example, 2Africa market pricing between JB and Mombasa ranges from upper twenties to lower 40s. Real negotiation is give and take. Not just ask. You want lower price, then prepare to offer long terms or enlarge the deal. You will fail in procurement if your standard opening line is 'give me the lower price possible'. ***When you get a great offer, take it. The East Coast is a tight market. Don't take that offer back to other carriers and try to beat them down. It's annoying and alienates vendors. It is also amateurish. Your focus should be long term relationships, not short term opp...