The Planning of System Upgrades in a Competitive and Competitive - - PowerPoint PPT Presentation

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The Planning of System Upgrades in a Competitive and Competitive and Evolving Environment

Daniel Hughes and Maja Summers

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Presenter Profile

• Mr Daniel Hughes is the Sales and Marketing Director for the Apollo

Submarine Cable System Ltd, the owner and operator of the Apollo transatlantic submarine cable system providing capacity between the USA, UK and France by way of two fully diverse cables.

• Daniel joined Apollo in January 2008. Prior to this he worked in the

International Network Engineering Group at Verizon Business where he was involved in the development of their global network through both private acquisitions of international capacity and through the planning development and management of consortium submarine cable systems. Daniel was with Verizon Business for seven years.

• Daniel has participated in many recent submarine cable initiatives and

gained a significant experience in the international telecommunications gained a significant experience in the international telecommunications industry from the commercial and carrier perspective.

• He holds a BSc in Applied and Environmental Geology and an MSc in

Applied Geophysics and Petroleum Geology from The University of Birmingham.

Daniel Hughes Apollo Sales and Marketing Director Email: daniel.hughes@apollo-scs.com Tel: +44 (0) 207 379 8825 Mobile Tel: +44 (0) 7768 937 069

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Introduction

Apollo operates exclusively in the Transatlantic market. This region remains fiercely competitive commercially. Transatlantic capacity growth is consistently Transatlantic capacity growth is consistently strong (circa 30% pa). The prevailing economics of the Transatlantic capacity market require upgrades to be efficient.

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The Basics of Upgrades

The objectives for system owners when upgrading can be sub divided into:

– short term = minimising cost – long term = maximising ultimate capacity

Conflict can therefore occur if the long term Conflict can therefore occur if the long term goal of increasing ultimate capacity comes at the price of short term objective of reducing channel cost. Discovering an optimum balance is therefore the goal.

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Timing is Essential

Accurate forecasting is key to maintaining and managing a ‘just in time’ upgrade plan. The advantages of bulk discounts can be lost through the stagnation of inventory. through the stagnation of inventory. Sequential small-medium sized upgrades can be preferential to large upgrades if the premium for doing so is low.

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Technological Development

Upgrading is further complicated by the emergence of new products. The adoption of a technology that can potentially reduce the cost of equivalent upgrade potentially reduce the cost of equivalent upgrade and increase the ultimate capacity would be a massive leap forward. Anticipating the demand and or application of new technology is complex.

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General Considerations

Technology will enable a massive increase in capacity upon in situ fibres in the Atlantic. If this can be done economically it will:

– Extend life of existing systems and delay any risk of capacity shortage. – Increase the earnings from existing infrastructure

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Ultimate Capacity Growth

– Sold capacity has doubled in the Atlantic from 5Tbit/s- 10Tbit/s in the period 2007-2010. – Ultimate capacity has doubled in the same period, and is likely to dramatically increase again in the near future. – The unlit capacity in the Atlantic is increasing over time.

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40Gbit/s Drivers: Carriers

Short term : Cost Medium term : Interface Long : Ultimate Capacity

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40Gbit/s and Cable Owners

• Early adopters of any technology carry risk:
• Implementation
• Financial
• Financial
• Rewards though likely outstrip the risks.
• Extension of system life.
• Greater flexibility and capability.
• Cost advantages
• Increased ultimate capacity.

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Conclusions

The planning of upgrades is a key skill. The potential for enhancing the ultimate capacity and in an economic manner is enormous. enormous. Against current growth trends, existing infrastructure has the ability to support demand through upgrades.

2010

enabling the next generation of networks & services

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Pacifico Convention Plaza Yokohama & InterContinental The Grand Yokohama 11 ~ 14 May 2010 www.suboptic.org The 7th International Conference & Convention

• n Undersea Telecommunications