SUBMARINE NETWORKS BECOMING A COMMODITY PRODUCT? Zvika Caspy - - PowerPoint PPT Presentation

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May 02, 2023 269 likes •406 views

conference & convention enabling the next generation of networks & services SUBMARINE NETWORKS BECOMING A COMMODITY PRODUCT? Zvika Caspy MedNautilus conference & convention enabling the next generation of networks & services

SLIDE 1 enabling the next generation of networks & services

conference & convention

SUBMARINE NETWORKS BECOMING A COMMODITY PRODUCT?

Zvika Caspy

MedNautilus

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conference & convention

Presenter Profile

Mr. Zvika Caspy is Vice President Sales and

Marketing of MedNautilus (fully owned subsidiary of Telecom Italia Sparkle) and also serves as the CEO of its subsidiary MedNautilus Israel. Having over fifteen years

f experience in the submarine cables

industry specializing in the Mediterranean region covering all commercial aspects of the carrier's business.

Place picture here

Zvika Caspy VP Sales & Marketing Email: zvika@mednautilus.com Tel: (+353) 1 435 9700 Mobile Tel: (+353) 87 694 0316

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Commodity

Definition: “A commodity is some good for which there is demand, but which is supplied without qualitative differentiation across a market. It is fungible, i.e. the same no matter who produces it”*

*Wikipedia

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Ownership Timeline

Mid 90’s

“Club”

1997-2001

“Private”

2001-2004

“Hybrid”

2005- onwards

“Open consortium”

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The “Club”

Unique
One system for each route
No competition => no risk
Cost base
Suppliers related to the buyers (AT&T SSI, KDD SCS etc.)

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The “Private”

Business
Private investors
Competition
Risk and return
Branding
Global networks

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The “Hybrid”

Evolution/Constraints
Bargain pricing
Competition
More and more self usage
Branding
Financial stability

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The “Open consortium”

C&MA more flexible
Non landing owners (Google in Unity)
Simple upgrade procedures
Competition between consortiums (EIG/IMEWE)
Co-build rather than “Club”

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The Vendors

Not related to the carries
Number reduced
Prices are well known
No Geographical limitation
All perceived by the market as high quality

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Commodity or not?

Routing is the same
No technological differentiation
Same unit cost
Ability to buy the product at any time with all

rights

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Reasons to invest?

Self usage (A-End carriers)
Value added services beyond the system (IP,

Continues capacity)

Resell of capacity is not the main source for

revenues

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Reasons not to invest

Small carrier
Not main market
Ability to purchase all rights (incl. upgrade rights)

in the secondary market

SLIDE 13

2010

Pacifico Convention Plaza Yokohama & InterContinental The Grand Yokohama 11 ~ 14 May 2010 www.suboptic.org

enabling the next generation of networks & services

The 7th International Conference & Convention

n Undersea Telecommunications

conference & convention