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

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 Presenter Profile Mr. Zvika Caspy is Vice President Sales and Marketing of MedNautilus (fully owned subsidiary of Telecom Italia Sparkle) and also Place serves as the CEO of its subsidiary MedNautilus Israel. Having over fifteen years picture of experience in the submarine cables here industry specializing in the Mediterranean region covering all commercial aspects of the carrier's business. Zvika Caspy VP Sales & Marketing Email: zvika@mednautilus.com Tel: (+353) 1 435 9700 Mobile Tel: (+353) 87 694 0316

conference & convention enabling the next generation of networks & services 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

conference & convention enabling the next generation of networks & services Ownership Timeline Mid 90’s 2001-2004 •“Club” •“Hybrid” 1997-2001 2005- onwards •“Private” •“Open consortium”

conference & convention enabling the next generation of networks & services 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 .)

conference & convention enabling the next generation of networks & services The “Private” •Business •Private investors •Competition •Risk and return •Branding •Global networks

conference & convention enabling the next generation of networks & services The “Hybrid” •Evolution/Constraints •Bargain pricing •Competition •More and more self usage •Branding •Financial stability

conference & convention enabling the next generation of networks & services 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”

conference & convention enabling the next generation of networks & services The Vendors •Not related to the carries •Number reduced •Prices are well known •No Geographical limitation •All perceived by the market as high quality

conference & convention enabling the next generation of networks & services Commodity or not? •Routing is the same •No technological differentiation •Same unit cost •Ability to buy the product at any time with all rights

conference & convention enabling the next generation of networks & services 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

conference & convention enabling the next generation of networks & services Reasons not to invest •Small carrier •Not main market •Ability to purchase all rights (incl. upgrade rights) in the secondary market

2010 conference & convention enabling the next generation of networks & services The 7th International Conference & Convention on Undersea Telecommunications Pacifico Convention Plaza Yokohama & InterContinental The Grand Yokohama 11 ~ 14 May 2010 www.suboptic.org