Subsea Cables & Internet Infrastructure

Key Observations Lots of Faster cable capacity available. Third fastest Japan/US sysrem. TY4/1 Wilshire or CLS/DC combinations available. Figure $13.5 MRC to $17.5K MRC depending on exact end points on a 1 year contract.  Chinese carriers dominate AAE1 and they report no capacity left. Other Asian carriers were reselling Chinese capacity. Hence their cupboards are now bare as well.  Only 10G capacity available. SMW5 is also almost fully depleted. At this point it is a so-called 'diversity play' for AAE1. Despite the tight Red Sea lane fit and the fact that Egypt is single point of failure.  Peace cable is not ready til 1Q2025, but pricing is available and orders are being taken. One SVP of sales told me that Peace will put downward pressure on the Marseille/Singapore route. I do think that will happen, but not by itself. It is Peace plus SWM6 that will temporarily lower prices. Temporary because AAE1 and SWM5 are depleted, but demand is steadily growing. No end to the demand ts

Cables: Jupiter or Faster. Term: 1 Year. A point: TY4 data centre, Tokyo.  Z point: Coresite, 1 Wilshire LA.  MRC: $18.5K. NRC: $15K. Customer responsible for cross connects.  Remarks:   1. Jupiter and Faster are the second and third lowest latency cables linking Tokyo and LA, respectively. Unity holds the first position.  2. CLS to CLS, CLS to DC, and DC to CLS also options. And less expensive. 3. Volume and Term Discounts.  Jupiter Cable Logical Map Faster Cable Map

If you can take it at the Chikura and Bandon CLS, MRC is $13.5K per 100G. From TY4 to 1 Wilshire pricing is $17.5K MRC. Good deal.