My Advice To East Africa Cable Capacity Buyers: Don't Over Shop

***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 opportunism.

***Stock up on good deals now. Getting 2Africa linked to Marseille via Red Sea cable bypass does not dramatically affect the capacity landscape between Djibouti and South Africa. East Africa needs, but will not get any time soon, another subsea cable. There is nothing in the works or announced that changes the landscape for the next three years.

Map of East Africa's Fibre Optic Subsea Cables


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