company news - SubCableNews
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company news - SubCableNews
EDITION NO. 15 September 2003 CONTENTS Page Project Updates 2 Company News 15 Project Overview - Repeaterless Cable Systems 45 - Repeatered Cable Systems 47 Outlook/Disclaimer/Imprint 49 The Global Information Newsletter for the Whole Submarine Cable Industry EDITORIAL Welcome to the Fifteenth issue of SubCableNews.com. Eckhard Bruckschen Everybody in the industry is talking about a different feeling after the summer period – the upturn is on its way! Several new submarine cable plans have been revealed and more confidence can be seen in the industry. More consolidation is still to come and only the strongest and healthiest companies will survive. Investments have been written off and some companies are returning stronger to the market than before. Only a few days more until the Submarine Networks World 2003 is opening its doors in Singapore. Will there be any news, any surprises? SubCableNews is attending the Conference and will keep you updated with any rumours or news from this part of the world. In this issue you will find again the latest project updates and company news from the submarine cable community. Please also note that if you add a link to www.SubCableNews.com on your web page, we will add your company to our links page free of charge. Enjoy reading the newsletter. The Editor Eckhard Bruckschen Picture: www.iscpc.org Okay, we will never reach the peaks of the year 2000, but at least the tendency is not going downhill any more. Charles L. Brown CABLE LAYING SHIP CHARLES L. BROWN Ship sinks off St. Eustatius The eagerly awaited sinking of the cable laying ship Charles L. Brown to form an artificial reef, took place off the coast off St. Eustatius on Friday, July 25. The sinking was due to take place on Sunday but it seems that the 350-ft ship got tired of waiting and took things into her own hands. Reports say that there was no way of keeping the ship afloat after pipes in the ship’s generator room burst and it was announced at 04:00pm on Friday afternoon, that the ship was going down. Just over onePage 1 and-a-half hours later the Charles L. Brown lifted her stern in salute and plunged to the bottom of the sea. The speed at which the ship disappeared surprised many, especially members of the St. Eustatius Fire Department who left it too late to recover some of their equipment from the doomed ship. It is hoped the sinking of the Charles L. Brown will attract divers from all over the world to the Statia marine park where they will be able to explore the Caribbean’s newest and most unique artificial reef. PROJECT UPDATES EUROPE UK “Sea Stallion” trenches North Hoyle Export Cable In August 2003, on a quiet beach in North Wales, Engineering Business (EB) was on site to witness a landmark in Renewable Offshore Power Generation – the installation of the power export cable for the North Hoyle Offshore Windfarm at Rhyl. North Hoyle is the first large scale offshore wind farm to be built off the UK coast and two submarine export cables will be used to bring the electricity generated to shore. The 12km long cables are being installed using an EB designed and built Sea Stallion 4 cable plough, owned and operated by CNS Subsea Ltd. “Economic and effective cable protection is critical to the success of Offshore wind farms. The Sea Stallion 4 cable plough is ideally suited to the installation of power cables in shallow water. As this project has demonstrated the plough can efficiently and securely bury the export cable up to 2m below the seabed where it is protected from damage from other seabed activities.” - Dr Tim Grinsted, EB Technical Director. The plough will be used to plough the cable in right up to the sea wall. This saves time, reduces environmental impact and ensures the same high degree of protection along the entire cable route. ESTONIA – FINLAND - LATVIA Estonian, Finnish ministers discussed Baltic-Nordic power grid link Some 110m euros will be spent by Estonia, Finland and Latvia on the installation of an underwater power cable between Estonia and Finland. This project called Estlink was one of the key subjects discussed at the meeting between the Estonian Economics and Communications Minister Meelis Atonen and Finnish Trade and Industry Ministry Mauri Pekkarinen on the 29th of August 2003. Finland will shoulder half of the cost and Estonia and Latvia will have to invest the rest. Detailed information as to when the installation work on the Estlink power cable at the bottom of the sea will start will be provided later in the year. Picture: www.engb.com Minister Meelis Atonen stated that actual preparations to launch the project have been made. Plough “Sea Stallion” RUMOURS: UK Pathfinder Project on its way again? There are rumours in the industry that the socalled “Pathfinder Project” is on its way again. In the next few months a feasibility study will be undertaken to investigate the best and final routes for this ambitious project. The Pathfinder project will provide broadband in rural areas of the United Kingdom. Submarine cables will connect the Highland and Islands of Scotland, the Shetlands and Orkney Islands. The system will consist of several submarine and terrestrial cable links, in total of approx. 1,800 km. Page 2 Eesti Energia [Estonian Energy], Latvenergo [Latvian Energy] and the Finnish companies Pohjalan Voima and Helsingin Energia will be the ones to carry out the project. Minister Mauri Pekkarinen said that Finland would like to have electricity from Estonia. “Naturally, we would like to have the opportunity to function like all open markets - in both directions, so that electricity would not only go from Estonia to Finland but, if the need arises, from Finland to Estonia as well,” he said. The Estlink project means that a power cable with a capacity of 315 MW is laid at the bottom of the Gulf of Finland. It will link the Baltic countries’ electricity network to that of their northern neighbours. The aim is to transport electricity produced in Estonia and Latvia to the northern market, as well as shore up the Estonian energy grids for emergencies. PROJECT UPDATES EUROPE SPAIN - MOROCCO A second interconnection cable planned Red Eléctrica de España and the Moroccan National Electricity Office (ONE) sign an agreement on the installation of a second underwater interconnection cable between Spain and Morocco Ahmed Nakkouch, Director General of the Moroccan National Electricity Office (ONE), and Pedro Mielgo, Chairman of Red Eléctrica de España, have signed an agreement for the construction of a second underwater AC cable between Morocco and Spain at the Straits of Gibraltar. It is expected to go into service in December 2005. This project is part of the development plan for the transmission grid. Both parties consider the interconnection of power between Morocco and Spain as a strategic project of mutual benefit. A second cable – between the Puerto de la Cruz substation in Spain and the Melloussa substation in Morocco – will increase commercial capacity to 1000 MW. The increased capacity of the interconnection will help to establish a Mediterranean power market. It will also provide the basic infrastructure needed to cover emergency situations in the regional power markets. The interconnection will play a strategic role in power exchanges between Europe and the Maghreb — as called for in a European Commission declaration in Athens in May 2003. The project will cost 117.2 million euros, which will be financed in equal parts by the two parties. It includes a study of the seabed, extensions to the terminal substations at Fardioua in Morocco and Tarifa in Spain and the supply and installation of the new cables. The Spain-Morocco interconnection has played a significant role in situations of high demand in the Spanish mainland system. In these cases it allows support to flow from Morocco and confirms the value of such international interconnections. IBIZA – MAJORCA - SPAIN Red Electrica will build underwater cables Red Electrica, a power company from Spain is planning to build one or two submarine power cables connecting the islands of Ibiza and Majorca with the mainland. Red Electrica is preparing already the electric connections between the peninsula and the Balearic Islands. At the moment the company analyses four possible alternatives, although already has centred its studies in two: the line Benejana-Cabo de la Nao, Ibiza and the line Vandellós-Majorca. The cable, which is more likely to be built, will have a distance of some 60 nautical miles or some 100 kilometres and would go from Benejana to Ibiza. It would be of continuous current and with a capacity of 300 MW since the technical difficulties impede another different system. Your Advertisement could be placed here! Interested? Contact: [email protected] Page 3 PROJECT UPDATES EUROPE MALTA - SICILY Vodafone orders underwater cable On 25th of August 2003, Vodafone Malta announced the award of a contract to Alcatel to build a Malta - Sicily submarine cable system. This project will link Vodafone Malta and Sicily with a high-capacity fibre optic link and will increase data bandwidth availability whilst increasing international voice capacity. In Malta, there is currently only one cable system, which supports all voice, data and Internet requirements. Under the terms of the agreement, Alcatel will supply a submarine fibre cable spanning approximately 250km, land cable and transmission equipment. The submarine cable will be laid on the seabed at a maximum depth of GREECE - ITALY GWEN project installation on its way On the 29th of August 2003, the Hellenic Telecommunications Organization, or OTE, announced the beginning of the submarine cable installation between the Ionian Sea island of Corfu and the Italian port of Bari. The cable - built in cooperation with Paris-based telecommunications services provider Alcatel - 3,000 meters after carrying out an extensive survey of the sea bed between Malta and Catania in Sicily, using a survey ship equipped with sonar and other sophisticated survey equipment. Equipped with armoured steel protection, the cable is designed to withstand the harshest sea environment. During operation, the cable system will be monitored 24 hours a day from the Vodafone Malta Operations Centre in B’Kara. The initial capacity of the system is 2.5 Gbits/sec with the potential to increase the capacity over1 Tbit/sec, making the system future proof in terms of capacity expansion. Vodafone Malta was granted an International Gateway licence in January 2003, upon liberalisation of international gateway services. The Vodafone Malta-Sicily Cable System is a component of the International Gateway project whereby Vodafone Malta will be providing will also be able to support the increased telecommunications traffic expected in Greece during the Athens 2004 summer Olympic Games next year. OTE is a sponsor of the 2004 Olympics. Another land cable will connect Corfu to several Greek cities. international telecommunication services between Malta and other countries. “The Vodafone International Gateway is expected to be operational by summer 2004. This will be very beneficial for the Maltese islands. This project will strengthen Malta’s international telecommunications infrastructure and will also increase the capacity for the projected future demand of the Internet and related services. Furthermore, it will create a competitive market for International voice and IP services,” said Joseph C. Grioli, Managing Director at Vodafone Malta. “The Vodafone Malta-Sicily Cable System will ensure a secure international interconnection to the Maltese Islands and we are pleased to be working with Alcatel on such an important project.” western European destinations such as Frankfurt, London and Paris. The cable will handle data, voice and video at high speeds. The cable installation vessel “Ile de Brehat” is currently executing the lay and burial operation of the GWEN project. The cable, to be delivered by the end of the year, will increase OTE’s capacity to service RUMOURS: TURKEY - ITALY Picture: www.lda.fr Turk Telekom project to be awarded soon? Cable Laying vessel “Ile de Brehat” Page 4 There are rumours in the industry that the Turk Telekom project (SubCableNews reported in May and July 2003) from Turkey to Italy will be awarded soon. Latest insider information has pointed in the direction of Pirelli Submarine Telecom Systems as the favourite company in this bidding process. PROJECT UPDATES AFRICA TANZANIA Submarine cable through Lake Victoria The Government of Tanzania is preparing a programme under which to supply electricity to rural areas at low cost. This is aimed at enabling people in those areas to take part in development projects, energy and minerals minister Daniel Yona said in Geita, Mwanza recently. Various projects will be undertaken under what is known as the Rural Electrification Master Plan. They include the Tsh8 billion project in Ukerewe District, Mwanza Region. Funded by Spain, the project will include putting up a line from Bunda to Kibara. Small electricity lines from Kibara to Nansio town will also be put in place. Under that particular project, a large submarine cable will be laid through Lake Victoria from Kisorya Bay to Rugezi Bay. MIDDLE EAST Furthermore, a transformer and service lines for supplying electricity will be installed for Kibara and Nansio customers. The Tanzania Electric Supply Company (Tanesco) spent Tsh486 million last year on putting up infrastructure for supplying electricity to rural parts of Geita, Sengerema, Kwimba and Misungwi in Mwanza. The company has also set aside Tsh574 million for use in distribute electricity to other villages of Mwanza between July and December this year. Yona also spoke of the 33kv BiharamuloChato power project. Electricity in Biharamulo and Ngara Districts will be produced from diesel-powered generators. Although the Government intends to run similar projects in several other rural areas, the minister said, financial constraints are hamstringing the efforts. He nonetheless thanked Spain, Germany, Japan and the World Bank for their contributions towards the projects. RUMOURS: NAMIBIA Festoon system planned? There are rumours in the industry, that Namibia Telecom is planning a festoon system along its coastline with connections to the proposed Angolan festoon system and also further to South Africa. Namibia is not connected to the SAT-3/WASC/SAFE cable system, so is missing international connectivity via submarine cable. RUMOURS: ANGOLA Tender for Festoon System out? There are rumours in the industry that the tender for the submarine festoon system along the Angolan coastline has been issued. Page 5 RUMOURS: UAE - PAKISTAN Submarine Cable Plan moved ahead? There are rumours in the industry that the plan for a submarine cable between Fujairah, UAE and Karachi, Pakistan is moving ahead. The planned SEA-ME-WE 4 cable system is connecting these two countries only via Branching Units, not directly. This project would create a complementary system providing more redundancy and protection for both countries. In another development, the Geita electrification project worth Tsh1.7 billion was officially inaugurated by the vice-president, Dr Mohamed Ali Shein, who said the aim of the Government was to supply electricity to more rural areas where 80 per cent of Tanzanians live. PROJECT UPDATES ASIA THAILAND-INDONESIA-SINGAPORE SingTel to press ahead with cable plans Singapore Telecommunications Ltd. plans to press ahead with two new undersea cable projects to carry communications traffic, the company said Monday, 18th of August 2003, despite the recent default of its 59.5%-owned C2C Asian cable unit. SingTel committed to plans for the two new cable networks last year. The roughly US$30 million TIS network is a regional 1,000 kilometre submarine cable joint project that will land in Songkhla in Thailand, Batam in Indonesia, and Changi in Singapore. The larger Sea-Me-We-4 network will involve SingTel as a part of a 13-member consortium to build a US$1 billion network that will connect 12 countries in Asia, the Middle East and Europe. SingTel is expected to share the cost of the TIS Network equally with its Thai and Indonesian project partners, while it is believed the tab for the Sea-Me-We-4 network will be split equally among the 13-member consortium, but financial details haven’t been disclosed. “Construction of the TIS cable is ongoing and it will be ready for service by the end of the year,” SingTel spokesman Ivan Tan stated. “Sea-MeWe-4 is a work in progress although there has been no award yet for the construction of the cable,” Tan said. SingTel’s ongoing cable investments come after its US$1.9 billion, 17,000-kilometre C2C cable network recently defaulted on bank loans as severe overcapacity in the wholesale bandwidth industry led to substantial losses. It had been hoped C2C would tap the growing demand for wholesale bandwidth, by reselling capacity to outside customers, but sufficient demand didn’t materialize. But in a consortium project like SMW4, telecom operators tend to share the available capacity among them. SingTel has said previously it doesn’t expect a shortage of demand will affect its new cable projects. Overcapacity has been concentrated on the Atlantic region, hurting C2C, which connects seven Asian countries in a loop system to the U.S. “C2C does suffer from excess capacity whereas the Middle East and Europe routes don’t have much capacity, so it makes sense to invest in this area,” said Standard & Poor’s Equity Research analyst Steven Koh. “And between Thailand, Indonesia and Singapore, oversupply is not as bad as the rest of the Asia Pacific region,” he said. SingTel also insists C2C’s woes won’t delay its other cable plans, with SMW4 expected to be completed to the 2005 schedule. “It takes 12 to 18 months for the (SMW4) cable to be completed, so 2005 remains possible,” Tan said. According to SingTel’s first quarter disclo- Page 6 sure statements earlier this month, lenders informed C2C it had defaulted on its US$592 million loan, which comes after C2C missed financial targets last year. “C2C, like most of its industry peers, has faced an extremely challenging operating environment over the past 18 months, with rapidly falling bandwidth prices and lower than expected market demand,” according to SingTel’s first quarter statement. C2C and the lenders, which include Citigroup Inc (C), Bayerische Landesbank Girozentrale (G.BLG), Sumitomo Mitsui Financial Group Inc (JMF) and China’s biggest and unlisted bank, Industrial Commercial Bank of China, are currently negotiating a restructuring of the debt. SingTel wrote off its entire S$348 million equity investment in C2C in the fourth quarter ended March due to its poor performance. In the first quarter ended June, C2C lost US$24 million on revenue of US$15 million. PROJECT UPDATES ASIA INDONESIA Siemens and Pirelli expand network infrastructure The Indonesian telecommunications company Indosat has commissioned Pirelli and Siemens as a consortium to deliver a turnkey high-speed optical fibre networks. The three subnetworks in East Java, Jakarta-Bandung, and Sumatra cover a total of more than 1376 km. They form the backbone for nationwide transport of both fixed network and mobile telephony data. The order volume is around 20 million euro and it will consolidate the already strong position of Siemens and Pirelli in Indonesia, generating more opportunities for future telecommunication projects in the region. The Indonesian telecommunication market offers, in fact, interesting business opportunities, due to its population of around 220 million and a fixed line penetration coefficient of only 3%. Thanks to this new high-speed optical fibre TOKYO ELECTRIC POWER CO. Tepco apologizes over erroneous suspicions network, based on SDH (Synchronous Digital Hierarchy) technology, Indosat will have enough transport capacity to offer telecommunications services nationwide via its own backbone network and will thus realize another step towards its strategic goal of becoming a viding complete and integrated optical networks - employing terrestrial and submarine systems - and of customizing best city-to-city solutions based on each customer’s needs. “full-service operator”. Siemens IC Networks, the consortium leader, will provide the transmission equipment, as well as the relevant cable and equipment installation, aiming at setting up the complete solution in just a half year. Pirelli is a global producer of Tyres, Energy and Telecommunication Cables and Systems. With more than 34,000 employees, 77 production sites, and total sales of 6.311 billion Euros at 31st December 2002, Pirelli is one of the world’s leading companies. It focuses its R&D, production resources and competencies on leading-edge technologies, as demonstrated by the advanced Pirelli Labs in the photonics and new materials fields and by MIRS – Modular Integrated Robotized System for tyres production. Pirelli will deliver the terrestrial cable, equipped with 24 new Pirelli SM Light fibres, offering the world’s most advanced characteristics both for PMD (Polarization Mode Dispersion) quoted specification and for splicing performance. The project strengthens the partnership between Pirelli and Siemens, which came into being in May 2001 with the goal of jointly pronation’s top utility were unfounded and that there was nothing to indicate any criminal case could be established. The cable most likely short-circuited due to insulation corrosion, in addition to its great load due to tension and other forces, they said. Tokyo Electric Power Co. apologized for the confusion caused by its suspicions — eventually proved unfounded – that someone had severed an undersea cable supplying an island with electricity in April. Fumio Kaji, head of Tepco’s Numazu branch, told a news conference he was sorry the firm caused such a hubbub over the incident. Underwater electricity cables found severed in April are shown by Japan Coast Guard officials in Shimoda, Shizuoka Prefecture, after it was determined that no foul play was involved. “We reported (the cable damage) to police because it was a phenomenon we had never experienced before,” he said, adding that this would serve as a lesson for the utility to improve its investigative and research skills to prevent a recurrence. The severing of the cable on the morning of April 19 temporarily left Hatsushima Island off Atami, Shizuoka Prefecture, without power. Japan Coast Guard officials said that an investigation into the allegations by the Tepco said it could not spot the corrosion during a regular inspection of the cable in February 2002. Company officials said they would increase the frequency of cable inspections and review the way the checks are conducted. At Page 7 About Pirelli Additional information on Pirelli is available at: www.pirelli.com the same time, they added they would also be better prepared to deal promptly with similar accidents. The cable was comprised of four lead wires — three for electricity transmission and one for telecommunications. Protective iron wire was wrapped in a spiral around the bunch. According to coast guard investigations, there were no reports of suspicious-looking vessels in the area at the time the cable was severed, nor was the cable cut via such artificial means as a gas burner. Furthermore, the coast guard asked two expert bodies, including the National Research Institute of Fire and Disaster in Mitaka, western Tokyo, for their opinions. The resulting view was that because the insulators of each of the wires had corroded, a portion of the electric current flowing through the wires flowed through different wires, transmitted via the protective wire, causing a short circuit. PROJECT UPDATES NORTH AMERICA CONNECTICUT Cross-Sound-Cable starts new battle with New York During the American Revolution, residents of Connecticut and Long Island engaged in a nasty campaign of guerrilla-style raids against each other using whaleboats to cross Long Island Sound. There were pitched battles, kidnappings, lootings, house burnings and assassinations. The way the rhetoric has been heating up lately over the controversial cross-Sound cable, we might be in for round two of the “Whaleboat War.” New York Gov. George Pataki called Connecticut opposition to operation of the undersea cable “mindless parochialism” and “the worst of parochial politics.” When Long Island Power Authority Chairman Richard Kessel was informed that federal authorities had ordered the cable into operation during the recent blackout, he was ecstatic. “We just got 100 megawatts — Screw Connecticut!” Kessel shouted, according to a newspaper report. Connecticut Attorney General Richard Blumenthal, meanwhile, is threatening legal action unless the federal government revokes its tem- porary order allowing emergency operation of the cable. Blumenthal charged that the federal order was no longer necessary because the blackout emergency had passed and because it represented an unconstitutional intrusion in Connecticut’s right to protect its environment. “They can thumb their nose at Connecticut, but they can’t thumb their nose at the law!” declared Blumenthal. Connecticut Gov. John G. Rowland, who said that he could live with an emergency authorization to operate the cable until September, continued to insist that the cable shouldn’t be given permanent approval until it meets all environmental permit requirements. The 24-mile submarine cable between New Haven and Shoreham, N.Y., was installed more than a year ago. But the operators failed to bury it to the required depth for hundreds of feet in New Haven Harbor because of rock ledge and other obstructions. The 300-megawatt line was designed to carry cheap power from Canada and New England to the lucrative Long Island energy market, where constantly increasing demands for power have resulted in some of the highest electricity prices in the nation. Cross-Sound Cable Co., which is a partnership involving a subsidiary of the Canadian power giant Hydro-Quebec and United Illuminating, has been desperate to get the cable in operation. Every day that passes costs the company hundreds of thousands of dollars in lost revenue. New York and LIPA officials are equally desperate, since so few new generating facilities have been built on Long Island in recent years. Although Pataki and Kessel scream about Connecticut’s “Not In My Back Yard” attitude about the cross-Sound cable, that same NIMBY sentiment has clearly contributed to local Long Island opposition to new power plants. This month’s huge regional blackout has given New York, the owners of the cable and President Bush’s administration a wonderful new rationale for getting the cable turned on, regardless of Connecticut’s environmental objections. Connecticut officials insist that the lack of an operational cross-Sound cable had absolutely nothing to do with causing the blackout, which was triggered by failures in Ohio. But that may not be enough to stop this new kind of “Whaleboat War.” Is your subscription running out soon? Contact: [email protected] Page 8 PROJECT UPDATES NORTH AMERICA OHIO Freighter snaps lake power line An unidentified freighter yanked up and severed one of Kelleys Island’s two underwater primary power lines, causing blackouts and hampering businesses, Mayor Rob Quinn said. And the cable might take months to replace. The mishap occurred already about 9:30 a.m. July 28. The electrical cable extended nearly four miles across the Lake Erie bottom, from the mainland Hancock-Wood Electric Co-Op substation at Lakeside to a terminus near the Kelleys Island post office. Quinn said a tugbarge combination might have accidentally snagged the line with an anchor, and then dragged it westward about a half mile. “At some point, they ended up severing it in two different locations. They tore it right out of the ground on the mainland side,” Quinn said. “They took about a mile and a half section out of it. “This not a piece of wire you can go down to the hardware store and buy. I’ve heard cost estimates anywhere from $2 million to $5 million dollars to repair it. Somebody’s not going to be happy.” Kelleys Island now receives electricity from a second Hancock-Wood underwater line. That twin parallel cable, located several hundred feet away from the damaged line, was installed as a redundant back up, Quinn said. Since the accident, Quinn said the island has experienced more blackouts than normal. After the line was severed, the Kellstone Inc. limestone quarry on Bookerman “The island can no longer supply us power, so we had to go to generators,” Kunar said. “We worked around the clock to get up and running because this is our busy time of year.” A rented 2,000-kilowatt generator now powers the plant. Kellstone had to shut down for one day while company leaders scrambled to find an alternative source of electricity. The facility employs about 30 workers. “It’s put us into turmoil here,” Kunar said. “It’s kind of subsided right now because we’re set up (with the generator), but for the first week it was a hectic thing.” He said the power woes would spark an increase in the quarry’s limestone costs. Hancock-Wood supplies power for 11,600 customers in 10 Northwest Ohio counties, according to the co-op’s Web site. Bill Barnhart, manager of operations and engineering, said the entire four-mile cable must be replaced — after a series of tests concluded last week, damages were deemed to be too extensive to repair. “We have never had an incident with any of our submarine cables where they were severed,” Barnhart said. “Cable manufacturers don’t have anything like this in stock or on hand. You order it and they have to fabricate it.” He said material costs alone would likely hit $1 million. The cable is about 2 1/4 inches in diameter, comprised of three conductors and protective steel armour. Barnhart said Hancock-Wood is receiving preliminary construction bids, but no cable replacement timeline has been established. Road was asked by Hancock-Wood to cease operations, general manager Ralph Kunar said: Page 9 USA MASSACHUSETTS Winergy shelves four planned turbine sites Citing public opposition a New York-based company has dropped plans for four of seven sites for offshore wind energy generation facilities along the Massachusetts coast. Winergy LLC, from Shirley, N.Y., is still pursuing three other sites, said Robert Link, the company’s compliance officer. The discarded sites include a 10-turbine project off Falmouth, a similarly sized project off Gloucester, and two larger proposals south of Nantucket. Winergy is still considering a 10-turbine project off Provincetown, in state waters, and two projects - one with 212 turbines, the other with 208 - south and east of Nantucket on Nantucket Shoals. Both of those are in federal waters. Cape Wind Associates, of Yarmouth port and Boston, is well along in its environmental review for a 130-turbine wind farm in Nantucket Sound. If approved, it would be the country’s first offshore wind energy facility. Winergy is the second company to apply to the Army Corps of Engineers for wind farm permits, but is at the beginning stages of the process. The Corps has already been gathering public comment on Winergy’s proposals in hearings and through the mail. Negative comments in continues on P. 10 PROJECT UPDATES NORTH AMERICA USA MASSACHUSETTS Winergy shelves four planned turbine sites Link said the remaining 17 sites will be whittled down to 10 within the next several weeks. the boundaries of the Cape Cod National Seashore. “We’re only looking to develop three or four sites anyway,” he said. Winergy is farthest along in the planning process with a 150-turbine wind farm off the Virginia coast. continued that process caused Winergy to back away from the Falmouth, Gloucester and Nantucket sites. “We looked at the public comments, and we’re trying to accommodate everybody,” Link said. However, he added that the Provincetown site, a mile offshore, generally was well received. Winergy has said that while it identified some 21 sites along the East Coast, it had no intention of developing them all. New England region Army Corps spokesman Larry Rosenberg said his agency has not yet decided whether the company will have to file full-scale environmental impact statements under the National Environmental Policy Act. Under the state’s equivalent statute, officials have already ruled that a similar environmental study must be conducted for the Provincetown site. Link said the site selection process there included four alternatives, but the near-shore site was preferred by the state, and Northampton County, which can exercise more control over the project, and collect tax revenue. Although within sight of shore, the project is partially blocked by uninhabited barrier islands just off the coast. Link said that the National Park Service has also alerted Winergy that it will require such a study for the Provincetown wind farm, since the electric cable would come ashore within India Telecom News (ITN) is your one stop resource for the converging voice and data industry in India. • ITN is a high-quality, in-depth weekly newspaper covering all the business, technology and regulatory news in telecom. • ITN delivers instant access to the actionable news and information services. From exclusive news to in-depth reports to a searchable archive of news stories, backed by a team of excellent editors, reporters and analysts. • ITN is also the web-edition and weekly magazine version of ITN Weekly Newsletter - which has been acclaimed as India's largest circulated weekly newsletter with highest international reach. • ITN it's all you need to stay on top of the telecom marketplace in India. The newspaper's editorial staff is the most experienced in the industry with outstanding telecom reporting experience. • ITN is the Internet's leading source for business news, market research and competitive analysis on the Indian communications industry. • ITN links all facets of the market through one portal, providing users with a complete information tool. • ITN Weekly Newsletter "India's largest circulated weekly newsletter with highest international reach" • ITN Newsletter reaches the de la crème of telecom industry all over the world. Read by those who are interested in India's telecom market and industry. • ITN News Weekly, India's largest circulated telecom newsletter, is published on the first business day of the week - on Monday Our Editor Dr. Udaylal Pai is a senior freelance reporter/editor/writer in India who has been specializing in Telecom industry for the last 6 years. He is quoted in media and his knowledge of the industry is a valuable resource for the market. He has been working as Indian contributor to various international publications like Internet News (USA), Global Wireless (RCR group, USA), VNU Business Publications (UK), Techweb (CMPnet, USA), IDG News Service (IDC Group, USA) and IGI Group, USA. He has written articles in telecom magazines like New Media, Phone + International, Sounding Board (USA) Telepolis (Germany), Teleresources (Australia), FT media - Telecom (Asia), Wireless Week (Cahners, USA), Broadband Wireless Business Magazine, tele.com - Commweb. He is still writing for telecom magazines on a freelance basis. Page 10 PROJECT UPDATES SOUTH AMERICA COLOMBIA PANAMA Electric Interconnection project planned The governments of Panama and Colombia are close to starting an environmental study for a 400km, 300MW electric interconnection project between the two countries. The best route is reported to be an undersea cable running from Colombia’s Gulf of Uraba following the coast to the north of Bayano in Panama. The design, construction and financing stages of the project will start once the study is complete and the line could be up and running by 2005. The line would deliver cheap- er Colombian power to Panama, and could allow consumer bills to be cut by 20-30%, according to Jose Quiros Ponce, general manager of state owned transmission company Etesa. Panama would use 180MW and ship the other 120MW on to Costa Rica and from there to Central America, he said. Panama is also working with Costa Rica to build their part of the Central American power interconnection project (Siepac), the so-called “friendship ring” that would interconnect Panama, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. The Panama-Costa Rica section should be completed in the first semester 2005 and will increase the power that Panama can export to Central America to 120MW. RUMOURS: FALKLAND ISLANDS Domestic system in planning? There are rumours in the industry that a domestic submarine cable system is in planning, connecting several islands of the Falklands in the South Atlantic. According to our source is the project already very advanced and a supplier will be selected soon. The system will be approx. 200 km long. Latest news: Rumours are out that GMSL has been the successful bidder for this “secret” project. New Times-New Strategies: ICT Rising from the Ashes 26th Annual Telecommunications Conference & Exhibition 11-14 January 2004, Hilton Hawaiian Village Beach Resort & Spa, Honolulu, Hawaii, USA New Times - New Strategies, the theme for PTC'04, emphasizes the opportunities that currently exist in the global marketplace for information and communication technologies (ICTs). While North America and Europe still struggle to reinvigorate their economies, several Asian countries have surged ahead in leadership positions with new technologies. PTC’s annual conference offers a congenial venue to interact with major players in the Asia-Pacific region. The conference has long been the most important event that ties Asia to the Americas and the rest of the world. Seize this golden opportunity to maximize your total participation in PTC’04 by: • Registering on or before 31 October 2003 and save. • Exhibiting • Sponsoring • Advertising Please contact Dolores Fung at +1.808.941.3789, email: [email protected] or visit the PTC’04 website at www.ptc2004.org or more information. PTC members enjoy 40% discount on the conference fee. If you are not a PTC member and are interested in joining, please email Justin Riel at [email protected]. Page 11 PROJECT UPDATES WORLD NORWAY - JAPAN POLARNET Survey update Picture: Polarnet Project Ltd. The First Trans Arctic Marine Cable Route Sur vey Nears Completion By Amad Purtow, Managing Director of Polarnet and Oleg V. Malov, Chief Specialist of ZAO Polarnet Polarnet is an international submarine telecommunications project, which shall link Western Europe with South East Asia and the Western Coast of the United States of America via the Arctic Ocean. This route has never been used before for laying cable systems so some pioneering work was necessary to establish whether it is possible to lay a cable system in that region and operate it reliably. Two feasibility studies were commissioned in 2001. Both indicated that the construction of such a system is possible if certain rules are followed and precautions are taken. A desktop study then followed to select the most optimal route for the underwater cable system in the complex Arctic Portion. The desktop study needed also to establish the requirements for organising the marine survey work in the Polar Region, which is rarely visited, and the prerequisite for cable installation in that region. The desktop study of Polarnet has nominally split the cable route that runs through the Arctic Ocean into three separate zones referred to as: • The Western Segment (approx 2100 kms cable) Survey ship “KOLA” • The Central Segment (approx 2600 kms cable), and • The Eastern Segment (approx 1400 kms). During 2002 Polarnet Project Ltd and its sister company ZAO Polarnet Russia have awarded contracts for the marine survey of the Eastern and Western Segments using conventional survey vessels and systems. The marine surveys were undertaken by the Russian sister company of Polarnet Project Limited, namely ZAO Polarnet Project, which has and continues to play the major role in the design of this international project. The Russian company Lenmorniiproekt was selected to survey both sections of the route because of their Arctic experience and their access to the necessary specialists required to meet the challenge. The survey used two research vessels namely the NIKOLAI KOLOMEITSEV for the Eastern section and the PETR KOTTSOV for the Western section. The results of the surveys are well documented in the final report. The remaining and most challenging segment of the Arctic route is being surveyed during the Page 12 summer of 2003. Polarnet has again awarded the survey contract to Lenmorniiproekt based on their past performance and expertise. Thus in July 2003 the final part of the cable route survey of the Russian segment of Polarnet was resumed. The marine survey, which is being conducted now, is carried out in the Arctic zone where for the most part, the route passes through sea ice. Participating in the 2003 cable route survey are Mr. V.N. Raskatov (Chief Project Engineer & Deputy Director OAO Lenmorniiproekt), Mr. V. Kirichenko (Vice President ZAO Polarnet Project) and Mr. O.V. Malov (Chief Specialist, ZAO Polarnet Project) who conducted and developed the desktop study for the project. Ice reports for this year confirm the original forecast of the sea ice conditions for 2003. They reports speak of very heavy conditions, with high concentrations of thick ice. The conditions are reported to be amongst the worst ever encountered. To withstand these conditions a special ice-class survey vessel and icebreaker escort (see attached photographs) have been commissioned to carry out the surcontinues on P. 13 PROJECT UPDATES WORLD NORWAY - JAPAN POLARNET Survey update Picture: Polarnet Project Ltd. The First Trans Arctic Marine Cable Route Sur vey Nears Completion By Amad Purtow, Managing Director of Polarnet and Oleg V. Malov, Chief Specialist of ZAO Polarnet continued vey (legal requirements) and are actually in use today. The re-enforced ice class vessel has been in dry dock in Murmansk for several months undergoing a conversion to a survey type vessel. The survey instruments deployed are proprietary having maximum protection from ice impact damage. For maximum safety, Lenmorniiproekt have commissioned extensive modeling of the ice conditions using the well-known Finnish Laboratory owned by MARC (Kvaerner Masa-Yards Technology Artic Research Centre). The conclusion of the simulation activity indicate that working in the Arctic Region and in particular along the Polarnet Route is less daunting than initially thought, provided that certain precautions are taken. The KOLA (survey ship) sailed on 21st July 2003 followed two days later by the SOVETSKIY SOYUZ (nuclear ice breaker). The vessels made very slow progress at the beginning owing to the severe conditions but have by now surmounted the problems and gathered some valuable survey data. The survey is expected to last up to 3 months. Thus of special interest were such issues as Nuclear Ice breaker “SOVETSKIY SOYUZ” accommodation as well as technical issues relating to the use of the antennae which have been attached to the hull of the Kola. The survey instrumentation was equipped with special protection to deflect broken ice away from the sensitive equipment. The survey equipment includes multi beam echo sounders manufactured by the Danish firm “Reson” and the latest Russian automated hydrographic complex “Muscat - ?????-300”. Both types of equipment can work simultaneously, thus guaranteeing maximum reliability of the received results. The complex ice conditions encountered at the beginning of the survey, have forced participants of the expedition to develop working procedures in short timescales, and after several sleepless nights and days, to define in practice the basic requirements and methodology for vessel control and operating modes of the surveying equipment. It is necessary to note that even to the highly skilled and experienced Captains of the vessels KOLA and SOVETSKIY SOYUZ the survey work carried out by the expedition essentially differs from the usual polar journeys. The issue now is not transiting around complex ice conditions but to maintain the Page 13 route set by the desktop study regardless of the ice conditions. On 17th August the expedition reached the final point of the survey having successfully navigated through the Arctic sea ice and provided an acceptable overlap with both the 2002 Eastern & Western survey results. Thus, it was possible in less than one month to link the route with that established by last years survey. Since then the survey convoy has continued to gather data whilst homeward bound for Murmansk, supplementing and processing the survey results to increase the width of the survey corridor. We expect the survey to be completed during the week commencing 21st September, ahead of schedule. Polarnet Project Limited hopes to provide highlights and details of the survey operation to the readers of SCN during the next few months. PROJECT UPDATES WORLD FRANCE SINGAPORE SEA-ME-WE 4 submarine cable consortium bids open On the 08th of September 2004, the multicountry submarine cable consortium opened bids for a mega project on transcontinental submarine cable, which will connect Bangladesh with the high-speed global telecom network by July 2005. Members of SEA-ME-WE4 (Southeast AsiaMiddle East-Western Europe 4) consortium were present when the bids were opened in Rome. Aliwardi Khandker, general manager (Planning and Development) of Bangladesh Telegraph and Telephone Board (BTTB), represented Bangladesh in the event. French Alcatel, American Tyco, Italian Pirelli and German NSW along with KDD, Fujitsu and NEC of Japan are trying to get the contract for building the US$ 750 million submarine cable system. Arabia, Egypt, Italy and France along with troubled American carrier WorldCom and Indian private carrier Bharti are members of this consortium. estimated US$ 750 million project cost. Bangladesh government has earmarked US$ 65 million as BTTB’s contribution to the consortium. But Indonesia withdrew its membership when SingTel of Singapore acquired major shares of Indosat, state-owned telecom agency of Indonesia. The contract to build this cable system will be awarded to successful bidder in March 2004. The contractor will have to commission the cable system within 16 months. Therefore, Bangladesh will be terrestrially connected with the high-speed global telecom network not later than July 2005. Meanwhile, the dominant carriers of Thailand, Algeria and Tunisia have expressed their desire to join the SEA-ME-WE4 consortium. Cable and Wireless of the UK and Reliance Group of India are also interested to be linked with this submarine cable network. The consortium will accept these new entrants if it faces the shortage of fund. The consortium members will conduct primary evaluation of these bids by the 12th of September in Rome. Then the consortium, with its primary evaluation report, will meet the bidders in Singapore from October 6 to 15. The second and final meeting with the bidders will be held in Kuala Lumpur during November 3 to 10. Lucent of USA, Nortel of Canada, Siemens of Germany and Ciena of France are also contesting to supply the peripheral equipment of this undersea network. By then the consortium will have precise idea about its investment on this transoceanic submarine cable network. State-owned telecom providers of Singapore, Indonesia, Malaysia, Bangladesh, Sri Lanka, India, Pakistan, United Arab Emirates, Saudi Sources said despite the global downturn in the telecom investment, the consortium members have already committed 84 per cent of the Meanwhile, BTTB has shifted the location of its submarine cable’s landing station from Chittagong to Cox’s Bazar. Sources said the high risk of cable cut due to fishing and anchoring in the Chittagong coast has prompted this dispute. BTTB is now going to invite an international tender to rollout 160 kilometres optical fibre cable from Cox’s Bazar to Chittagong. The government has earmarked Tk 40 crore for this project. Initially it will be equipped with 622 Megabits per second (Mbps) capacity to carry 8,064 voice circuits. Ultimately it will be upgraded to 1,000 Mbps to handle 129,024 simultaneous international phone calls. Currently BTTB handles at a time only 3,333 international phone calls through its satellite circuits. Any Rumours you want to share? Contact: [email protected] Page 14 COMPANY NEWS FLAG TELECOM GROUP LIMITED (I) aged bandwidth services, vPoP and co-location services. FLAG Files Quarterly Report Patrick Gallagher, FLAG Telecom’s Co-Chairman and Chief Executive Officer said: “During the second quarter of 2003 we continued to build on our strong customer base and we saw continued growth in customer confidence. This growth, together with a strong cash position, has enabled us to announce our intention to pre-pay a significant portion of our outstanding indebtedness by the end of August 2003.”“We remain confident that our unique network footprint and suite of flexible products will enable us to maintain and consolidate our leading global market position.” On the 18th of August 2003, FLAG Telecom Group Limited announced that it has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q for the period ended June 30, 2003. FLAG announced that total revenues in the three and six months ended June 30, 2003 were $33.5 million and $63.1 million, respectively. Furthermore, FLAG has entered into new customer contracts with a value of $36.8 million and $78.9 million during these same periods, underlining customer confidence both in the company and in the quality and breadth of its network. The company stated that it continues to experience strong demand for network services activities, including IP Transit, man- FLAG TELECOM (II) Revitalised Flag Telecom at Telecom World 2003 On the 28th of August 2003, FLAG Telecom announced that it will be exhibiting at the ITU Telecom World 2003 event in Geneva from 12 to 18 October 2003. Patrick Gallagher, FLAG’s Co-Chairman and Chief Executive Officer will be speaking at the Forum on 13 October 2003. FLAG Telecom is a leading independent provider of international wholesale network services to telecommunications carriers, ISPs, content providers and other broadband operators. It has an established customer base of more than 180 leading operators, including all of the top ten international carriers* (*Telegeography 2002). In Geneva, FLAG will be located on stand number 4229 in Hall 4, alongside several of its international cus- providers and other broadband operators. Its unique network spans four continents, connecting key markets in the Middle East, Asia, the USA and Europe. FLAG offers a focused range of global products, including bandwidth, IP, Internet, Ethernet and Co-Location services. Recent news releases and further information are on FLAG Telecom’s website at: www.flagtelecom.com and for full details of its financial results and for its intention to pay off one of its loans early, please see the latest Form 10-Q as filed with the SEC. For further information, contact: FLAG Telecom Mr Willem Baralt Group Treasurer Treasury and Investor Relations +44 (0)20 7317 0837 [email protected] About FLAG Telecom FLAG Telecom is a leading provider of international wholesale network transport and communications services to carriers, ISPs, content tomers, including Korea Telecom, Samsung Networks Inc and Swisscom. FLAG Telecom owns and manages an extensive global optical fibre network connecting key business markets in Asia, Europe, the Middle East and the USA. FLAG also owns and operates a low latency global MPLS based IP network, which connects most of the world’s principal international Internet exchanges. At the show the company will be focusing on its extensive range of global bandwidth, IP, Internet, Ethernet and co-location services offered to the wholesale communications and Internet community. The exhibit will underscore FLAG’s aim of defining the standard for excellence in providing the best quality, best value and most flexible connectivity eastwards and westwards between any two points on its network. Patrick Gallagher said: “The timing of this gathering of the global telecommunications Page 15 industry at Telecom World 2003 could not have been better for FLAG Telecom. At the Telecom World show, we will be celebrating the anniversary of our emergence from restructuring. We are a lean and agile organisation with a healthy balance sheet, strong liquidity position, a forward-looking global operating strategy and nearly one year of successful performance behind us since we completed our restructuring. This, coupled with our network assets, valued customer base and service capabilities provide the company with a sound platform to maintain and consolidate its leading global market position. “We continue to build on our strong international customer base and have recently rebranded the Company to reflect the core strengths of our multi-cultural heritage, global operating strategy, and independence.” COMPANY NEWS GLOBAL MARINE SYSTEMS LTD. CEO’s summer message – 2003 “It has been a challenging and tough year since I joined Global Marine as the Chief Executive Officer last September. Faced with numbers, which clearly showed that we Phil Metcalf could be going out of busi- CEO Global Marine ness, the almost immediate loss of ACMA, one of the mainstays of Global Marine in recent years, and a portfolio of assets that were simply not working and paying their way, we were in some trouble. Others in the industry saw this too, re-doubled their efforts in competing with us, and for a time managed to make some headway in taking business from us, and convincing the market place that we would not be around much longer. Having a parent company that was in no position to help increased the scale of the problem. Well, we are still here, and stronger than ever. We have reduced our cost base, we have sold assets, we have maintained and improved our cash position, and we have convinced every single community of interest that we are here for the future. Our parent company is likewise in great shape and working much more closely with us. The loss of ACMA was mitigated by the Guardian solution that I talked about in my previous message, and we are seeing tremendous success and take up of this tailored solution that really helps some of our customers manage their business in a much more effective manner. Our latest wins include BP and Hibernia, who have both signed up to our Guardian Total Maintenance Solution. The maintenance agreement with BP covers telecommunication cables to a number of BP and third party-managed off- shore platforms in the North Sea, whilst the Hibernian contract is for a cable system stretching from Dublin to Canada, to Liverpool via Boston and back to Dublin again. Both customers highlighted our flexible, innovative approach to maintenance solutions as a key factor in their decision to select Global Marine above our competitors. Our fleet is extremely well positioned and flexible enough to meet the needs of a market that has changed beyond recognition. One thing I predicted a year ago was the demise of the long-haul systems, and a shift towards regional network systems. This has proven to be the case, and we have been successful in winning a good share of the systems that have been awarded and in the case of Svalbard for the European Space Agency, installed in large part already. They are working with NASA to link an earth satellite located on the remote Arctic island of Svalbard with their communications interface on mainland Norway. It was Global Marine’s superior technical solution that brought us this win (under contract to system provider Tyco), reinforcing our reputation as the quality and innovative provider in our industry. Incidentally, this installation has just broken the world record for the depth of water in which a cable has been buried, achieving a depth of 1680 metres, and with the project on course to complete ahead of schedule, Global Marine is justifiably proud of the achievements of the team. All this good fortune was not entirely accidental though. Our organisational re-design, the launch of our Regional Network Solution product, and as a result our improved performance, went a long way to winning this business. We will continue to add to this capability, and for the first time recently we were able to offer a complete installation, maintenance, and capacity solution through working with our parent company Global Crossing. No one can Page 16 offer such compelling solutions to the market at extremely competitive rates. And our reach is global. Combined with a complete solution capability, this makes it very simple for customers, who need go no further than Global Marine to get themselves to the point where they can generate revenue. We are very proud about the value of our assets, and what we can use them for. We have been very successful deploying our ROV fleet for survey work, and other sub-sea investigations, and I can guarantee you that you will see some innovative and novel applications as we go through the rest of this year. It is very significant that in June, Global Crossing’s Monthly Operating Results included those of Global Marine as continued business. It reported our cash position of $67m, and referred to the desire to maintain Global Marine in the group of families. It is no coincidence that we are now able to produce positive EBITDA and cash flow to the group. In conclusion, I was not at all surprised that the view in the market place a year ago was that we were going out of business - we were facing some challenges that certainly could have taken us down that path. But we have faced up to those challenges, and are now stronger than ever, with a management structure that is very quick on it’s feet, with professionals who have a huge amount of experience in this business, and massive opportunities ahead. That helps us serve our customers even better than we have done in the past, and in a manner that supports their business too. Giving up our number one position in the industry was always going to be something worth fighting for. We are still in that position, and I have absolutely no intention of seeing that change.” COMPANY NEWS ALCATEL Alcatel makes 110 workers redundant in Calais On the 08th of September 2003, around 110 workers at the Calais plant of Alcatel Submarine Networks have been made redundant, as part of a workforce adjustment plan affecting 213 workers at the plant, which manufactures submarine and optical fibre cables. The plant has a total workforce of 745 workers. The 110 workers are those not included in schemes such as retirement, early retirement and voluntary redundancy. In September 2002, parent company Alcatel, a leading telecoms equipment group, had announced 9,000 job losses, adding to the 10,000 announced only a few months earlier. JAMES FISHER MANX ELECTRICITY AUTHORITY Blackouts won’t hit the Isle of Man The Island’s (Isle of Man, UK) electricity network is now so strong that mass blackouts similar to those experienced in America and London recently can’t happen here, according to Manx Electricity Authority chief executive Mike Proffitt. His comments follow the successful completion of the big test of the submarine cable between Douglas and Blackpool on the 31st of August 2003. A gas turbine at the new Pulrose power station was switched off, leaving the cable to back it up and shoulder the Island’s electricity supply. It happened at 2pm and the changeover happened in the blink of an eye. Growth still to come James Fisher’s strategy of going after higher value marine support services - in an effort to cast off its shipping company label in favour of a services company tag - continues to pay off. Its marine support services division carries out various tasks for the MoD, including providing the Royal Navy with a UK submarine rescue service. Other big customers include British Nuclear Fuels. The company has made considerable progress in turning itself around. It now gets about 39 per cent of its profits from the services unit, up from about 17 per cent a year before. The balance comes mainly from its tank ships business, where it delivers fuel to the major oil companies, and it also has a cable-laying business - which lays undersea cables for telecom companies - although that business is not really considered a core operation for the long term. James Fisher’s pre-tax profits in the six months to 30 June were 11 per cent higher, before accounting for losses on the sale of two ships. The company is bullish on its prospects for the rest of the year. It is particularly optimistic about marine services, which it believes will be its biggest division before long. Offshore Survey And Engineering www.osae.de Mr Proffitt explained: “We wanted to test the cable working as resilience for the power station. The main purpose of the cable being there is that if we lose of one of the engines the cable will pick up that load straight away. That has never been tested.” RUMOURS: ALCATEL SUBMARINE NETWORKS More Redundancies? There are rumours in the industry that ASN in Greenwich has made another 35 office people redundant. The current downturn in the submarine On Sunday, 31st of August 2003, the Island was using 42MW which was being run from the gas turbine. cable industry has forced ASN to reduce Mr Proffitt said: “What we did was switch the gas turbine off at exactly 2pm so the system would think there had been a plant failure, which it did, and the protection system automatically kicked in and the cable went from 1MW to 31MW.” the Greenwich office might face closure by “The good news is that it did exactly what it was supposed to do.” “It did that in 1/300th of a second, virtually instantaneous. That is what it is designed to do but we have never really had an opportunity to test that until the power station had been completed. We stayed with it for a couple of hours.” Mr Proffitt added: “It’s on the tip of everyone’s tongue, what happened in America and what happened in London where they had those blackouts. With the system that we have now, that will just not happen to us.” Page 17 personnel dramatically. There are also rumours in the industry that the end of the year. COMPANY NEWS MAYFLOWER Green future? Motor trade supplier Mayflower, owner of the Alexanders bus and coach building operations in Falkirk and Larbert, dangled out the prospect of a more prosperous, green-powered, future when chief executive John Simpson wheeled out its latest results beginning of August. While industry experts say the half-year figures disappoint directors are set to enthuse about prospects for their new Mayflower Resolution ship which is designed to work on the UK’s emerging off-shore wind-farm industry. Already the ship has secured a major share of a £74 million contract to install turbines off the coast of North Wales and there is strong speculation that directors are ready to announce at least one other significant project management deal off the east coast of England. METOC Metoc focusing on marine industry solutions at GeoSolutions show Metoc will be demonstrating its geographic information solutions (GIS) for the marine industry at the Geo Solutions 2003 Exhibition, taking place at Earls Court 1, London, 16-18th September 2003. Visitors to the show will be able to see how renewable energy companies, cable and pipeline owners, oil & gas companies, and ports and harbours can use GIS to improve asset management and reduced project costs. With offshore wind farms a key component of the UK Government’s target to obtain 10% of the country’s electricity supplies from renewable sources by the end of the decade, Metoc will be showing how the use of geo-spatial technologies can help manage the vast amounts of data required in the planning of wind farms. The gossip has helped the shares to stage a strong recovery to a current level of around 25.5p in recent weeks – more than double the 11.75p price in April when non-executive director John Major announced his decision to step down from the board. Some believe the enthusiasm is a little premature in view of trading elsewhere in the group and there is concern that Chinese shipbuilders may not be able to deliver the £30m Resolution until November, about 12 weeks after the first scheduled delivery date. “I’m not surprised at the likely delay and I don’t think it is any cause for concern,” said stockbroker Peter Jones at Peel Hunt. “The vessel is still well ahead of any competition and will give Mayflower a head start in obtaining new business. “Following the government’s decision to sanction heavy investment in offshore wind farms I believe the company’s energy division Owners of submarine cables and pipelines will be able to learn how GIS can simplify the management of maintenance programs. Metoc will also be introducing a new approach to data management for ports and harbours, which exploits GIS to provide a central information resource for the port community. “GIS is an invaluable tool for owners and operators with assets in the coastal and offshore environment says Mike Osborne, the Business Manager responsible for GIS services at Metoc. “But implementing a GIS in the marine environment requires a very different approach to land-based systems, and it can be a notoriously difficult and time consuming task,” warns Osborne. Metoc have drawn on their 10 years experience of applying GIS for coastal and offshore projects to help companies overcome the problems associated with this challenging environment. One example, being demonstrated at the Page 18 will provide a major revenue stream in a relatively short time.” Insiders point out that the delays in delivery were as a result of Mayflower’s own decision to expand facilities on the vessel after receiving a rush of inquiries from prospective customers. They stress that the actual work at sea is only part of Mayflower’s involvement in wind farms and believe the group has already completed some 40% of its contract in North Wales on land long before the first turbine is due to be installed. The company is said to have discussed the likelihood of further ship orders with the Shanghai shipyard. However the group says it wants to see its new ship in action before ordering more. There are also cash constraints and total net debt stood at £163m at the end of last year despite an inflow of £64m following a rights issue. show, is the SeaZone initiative. This addresses the problem of identifying and obtaining suitable sources of marine environmental data, and combining and formatting these data sets to enable their use in a GIS project. SeaZone offers a wide variety of sources available from a single source, and delivers that data in a ready-to-use format for GIS. About Metoc Metoc works with leading companies in the water, oil & gas, power and telecoms, ports, and renewable energy industries, helping clients develop appropriate engineering solutions to achieve compliance, ensure asset integrity, and reduce capital and operational expenditure. Metoc employs professionally qualified staff across a wide range of disciplines, which provide technical advice and project management to support all stages of a project’s lifecycle. Since its inception in 1983, Metoc has worked on over 1000 projects in continues on P. 19 COMPANY NEWS SUBSEA7 Successful Deep Water Trials for underwater vehicle Successful deep water trials for Subsea 7’s underwater vehicle ASV Geosub, the Autonomous Underwater Vehicle (AUV) developed by subsea engineering contractor Subsea7, has successfully completed comprehensive sea trials in Orkney’s Scapa Flow and off of the West Coast of Scotland. The demanding tests mean that Geosub is now ready for commercial use. The first phase of the trials in the sheltered waters of the Scapa Flow was conducted from the survey vessel, Jean Charcot at the end of July. During this phase, which lasted 10 days, the 7m, 2,300kg vehicle executed surface and shallow water missions’ to assess the reliability of its sub-systems and survey and positioning sensors in a water depth of up to 60m. The second phase of the trials took place off Raasay in water depths of up to 150m where Geosub undertook deeper water test dives. Murray Dick, Subsea 7’s global remote technology group manager commented: “During the trials, Geosub consistently performed every task that was asked of it. The trials team worked tirelessly to ensure the vehicle was put through the most stringent of tests. We are delighted to have reached the stage of taking Geosub to the commercial market and in doing so, bringing a new dimension of the latest underwater technology to Subsea 7’s customers.” ASV Geosub was developed, following a licensed technology transfer, with Southampton Oceanography Centre, to address the need for high-resolution geophysical surveys with extremely accurate positioning in ever-deeper waters. The initial focus for the vehicle will be site surveys, pipeline and cable route surveys. The vehicle is fitted with multibeam echo sounder, sidescan sonar and sub bottom profiler systems as standard. ASV Geosub is powered by batteries and has a classic torpedo shape. When programmed with a mission the vehicle is launched from the support vessel and sent a mission start command via a VHF radio link. On the surface the vehicle follows a figure of eightpattern until the onboard Inertial Navigation System (INS) is calibrated. METOC Metoc focusing on marine industry solutions at GeoSolutions show continued more than 50 countries, ranging from desk studies through to the management of multimillion pound projects. Metoc is a privately owned UK limited company and operates from offices in Hampshire. Metoc is a business partner of ESRI (UK) and Cadcorp, and a Licensed Partner of the UK Hydrographic Office. For further information contact: Dr Mike Osborne Informatics Manager Metoc plc +44 (0) 1428 728548 When this is completed the vehicle dives to a pre programmed altitude and commences the survey. Navigating around a pre programmed trajectory on the seabed the vehicle gathers and logs data from the survey sensors. During the dive the surface vessel canif required communicate with the vehicle using an Acoustic modem. When the vehicle has finished the mission it will surface and be recovered by the vessel. Submarine Networks Asia 2003 24-26 September 2003 The Oriental Hotel, Singapore Submarine Networks World 2003 will be your best ever navigation tool to a more predictable and profitable future. 2 days conference, 8 dedicated sections, one-day workshop and over 26 international speakers - This will be your best 3 days working out of the office. Presented for the 6th year in Singapore, Submarine Networks World has all the information you need to be know-ledgeable, successful and profitable. This is the only submarine cable event that brings you the pertinent industry issues, the realities of today’s industry and project updates around the region. Be at the ONE event that submarine cable professionals MUST be at during the year - book your berth today! For more information contact: [email protected] Shen Tan (Ms), Marketing Manager Terrapinn Pte Ltd, 12 Prince Edward Road #03-01 Bestway Bldg. Podium A, Singapore 079212 Tel: +65 6 322 2748, Fax: +65 6 226 3264 Page 19 COMPANY NEWS UUVS 2003 UUVS: September 24th – 25th 2003 The Fifth Unmanned Underwater Vehicle Showcase (UUVS 2003) is “only a few days away.” Scheduled for September 24-25, 2003, at Southampton Oceanography Centre, the popular conference already has 60 exhibitors signed up as well as an impressive technical program. Professor Gwyn Griffiths, UUVS Conference Committee chairman, commented, “Military use of AUV technology continues to expand, with vehicles now out with the fleet undertaking real missions, reducing risk, and increasing effectiveness. In science, microAUVs are opening up quite different applications from their larger brethren and across the spectrum of size new challenges abound for the next decade. ROV and unmanned airborne vehicle (UAV) technology also moves forward apace and dovetails well with both AUV design and operations. Meanwhile, offshore industry looks to an era beyond survey AUVs to the intervention or hybrid vehicle of the future. Underpinning all of these ambitions are exciting developments in the core technologies that make UUVs practical such as autonomy, data interpretation, visualization, and docking. The invited presentations at UUVS 2003 capture this sense of achievement and excitement and will provide delegates to the conference with the opportunity to interact with leaders from industry, defence, and academia in a way that helps shape the future.” He is head of the Underwater Systems Laboratory within the centre’s Ocean Engineering Division. This year the Southampton Oceanography Centre’s new unmanned vehicle fleet, Isis, a 6,500-meter-rated ocean science ROV, and the lo, a concept unmanned air vehicle, will be available for viewing. The conference includes a free buffet lunch, tea, and coffee at morning and afternoon break where applicable. Delegates are also invited to attend the UUVS dinner on September 24 at the Southampton Yacht Club. Tickets are limited so book early to avoid disappointment. Tickets can be ordered with the registration form. For more information and to register, go to www.uuvs.net. THALES GEOSOLUTIONS Thales GeoSolutions enhances ROV capability Thales GeoSolutions’ new generation of remotely operated vehicle (ROV) the G3 has been substantially enhanced to enable operation at depths of up to 4,000m. The upgrading has been achieved by redesign of the umbilical for increased power and improved telemetry, strengthening of the vehicle structure for extra ruggedness, increased buoyancy rating and the addition of enhanced cameras and survey sensors. The G3 is now capable of operating at full power on survey and intervention work for extensive periods at depths of 4,000m. Also well suited for inspection, repair and maintenance, the Thales G3 is a robust and reliable, 4,000m depth rated, work class ROV providing 125hp motive power, capable of 750kg bollard pull and a forward speed in excess of 3.5 knots. Specifically designed for the offshore industry, the G3 meets the multiple demands of the sub-sea market from high-end survey work to drill rig support. Improvements to the structure of the G3 sees the incorporation of high-strength titanium communication sensor and electronics pods, increased compensator fluid reservoir and volume, the addition of high-density buoyancy with supplementary sponsons, together with new cameras and survey sensors all rated for an operational depth of 4,000m. Other enhancements include upgraded depth rating of the vehicle’s seven-function master/slave manipulator and five-function grabber, a more robust and reliable telemetry system and an umbilical that will provide the full power of 125hp at the required depth. Extending its working envelope, the G3 is capable of operating in conditions of up to sea state 6 (Beaufort 7) utilising its 10 Te SWL, 3G launch and recovery system (LARS). In addition, depending on the prevailing weather and operational circumstances, the ROV can be configured with lighter work-package options to approach up to 4G operations. The G3’s associated control van has been completely redesigned to provide a robust state-of-the-art control and power system, including an ergonomically designed pilot control station. The control van is outfitted with industry standard components for the video, overlay, switching and PC based SCADA condition monitoring systems, allowing ease of supply and maintenance wherever deployed around the globe. The control van’s imbedded wiring system reduces the possibility of accidental transit damage causing faults and safety problems. Project out for Tender? Contact: [email protected] Page 20 COMPANY NEWS SMD SMD in search for sunken gold An undersea exploration vehicle designed and built by Soil Machine Dynamics (SMD) in Newcastle, UK, is playing a key role in the salvage of what could be the most valuable shipwreck in history. Newcastle based SMD specialises in remotely operated vehicles for subsea use and was responsible for developing ‘Zeus’ which is being used by US-based Odyssey Marine to recover the gold on board the SS Republic which lies off the Georgia coast. Worth $400,000 when SS Republic set sail the cargo is now valued at $160 million. The money was to be used in the South’s reconstruction, and to help relieve the post-civil war misery. Mike Jones, sales and marketing manager at Soil Machine Dynamics, said: “Most of the machines we create are used for laying and burying cables and pipelines deep undersea. It is really exciting to see one of them being used to find such a historically important and valuable wreck.” The ship sank during a voyage to New Orleans in 1865 carrying 20,000 gold coins. The ‘Liberty Heads’ were the preferred currency of the time and weighed one ounce each. Privately owned SMD was founded over 30 years ago by Dr Alan Reece from the University of Newcastle and employs around 70 people. Zeus, which was named by Odyssey Marine, especially for this mission, weighs in at 7 tonnes, has 240 horsepower for propulsion and INTERNATIONAL TELECOM USA IRS could not confirm the status of the tax lien against International Telecom. General Dynamics unit: Tax issues are over The federal government says it is owed $686,866 in back taxes from a General Dynamics subsidiary that shut down last year. The Internal Revenue Service has filed a tax lien against International Telecom USA, the fibre-optics company owned by Falls Churchbased General Dynamics. However, officials with General Dynamics say the company owes no back taxes and settled the issue with the IRS. “Our tax department says the issue has been resolved,” says Rob Doolittle, director of public affairs for the company. A spokeswoman for the This is not the first time a federal tax lien has been filed against General Dynamics, which employs close to 60,000 people worldwide and owns dozens of subsidiaries. In fact, company officials say they receive so many lien notices from the IRS that someone from General Dynamics works with the agency on a daily basis. The tax lien, filed July 15, was based on unpaid employee withholding taxes. A federal or state tax lien is filed against a company’s property to ensure the government is paid back. In most cases, the liens are settled through payments, but sometimes the tax collector takes the company to court to seize property. Page 21 can operate at depths of over 8000ft. The system’s cameras feed high-resolution video signals to the operators at the surface, which enables them to control two position feedback manipulators for retrieving the delicate artefacts. It was originally designed for advanced deepocean fibre optic cable maintenance operations and is perfectly suited for the rigors and precise handling required by delicate shipwreck excavation far below the ocean’s surface. “We should be hearing a lot more about Zeus in the coming months as Odyssey Marine has a deal with the British Government to recover 9 tons of gold from the shipwreck of HMS Sussex,” added Mr Jones. International Telecom, which was based in Baltimore and had offices in Virginia, closed during the fourth quarter last year, officials say. The company wrote off $112 million on its quarterly earnings because of the closing. The company was founded in 2000 when General Dynamics (www.generaldynamics.com) combined its Caldwell Cable Ventures subsidiary with International Telecom. The subsidiary installed underwater fibreoptic telecom networks for large telecom companies. When the firm was founded, the fibreoptics industry — with a good deal of it centred around Ciena and Corvis in Maryland — was worth several billion dollars. These days, however, the industry is on pace to ring in just about $500 million, according to industry research. COMPANY NEWS COLUMBIA VENTURES CORPORATION FLORIDA CORAL REEF DEBATE Columbia Ventures Acquisition of CTC Approved Florida approved coral reef telephone cable rules CTC Communications Group, Inc. announced that the U.S. Bankruptcy Court approved its previously announced investment agreement with Columbia Ventures Corporation and Columbia Venture Broadband LLC, subject to the confirmation of a plan of reorganization. The investment by Columbia Ventures forms the basis of CTC’s forthcoming plan of reorganization. Michael Katzenstein, CTC’s interim CEO, said, “The Bankruptcy Court approval of the selection of Columbia Ventures as plan investor is an important step forward for CTC and its dedicated employees. With the investment and the support of Columbia Ventures, CTC will maintain its position as the preeminent competitive telecom provider in the northeast. CTC thanks its customers for their continued belief in our company.” He noted that CTC expects to emerge from Chapter 11 with funding for growth, a reinvigorated business plan and a substantially unleveled balance sheet. CTC also announced that all regulatory filings required to consummate the transaction have been made by CTC and Columbia Ventures. Kenneth D. Peterson, Jr., Columbia Ventures CEO, stated, “I am delighted by the decision, which puts CTC on course to emerge from Chapter 11 before the end of the year. We believe CTC’s employees are among the best in the industry and we look forward to closing this transaction as quickly as possible. CTC’s customers have shown their loyalty and proven their good judgment. Their confidence will be rewarded by CTC’s strong customer orientation, the continuation of superior existing services and the new services that we plan to roll out.” On the 26th of August 2003, the state of Florida approved rules governing how and where telecommunications companies can lay undersea fibre optic cables in areas where there are coral reefs. Florida, which has the most extensive living coral reef system in North America, will require phone companies to lay Internet and telephone cables in designated gaps in the reefs and prohibit them from putting phone lines in certain areas. Environmentalists proposed the rules due to concern that telephone cables laid on top of the reefs could sway back and forth in storms or when snagged by anchors, damaging the delicate coral, which can take up to a thousand years to grow. “As far as we can tell, we’re the first government to have a policy that directs underwater facilities to be sited through the gaps and going around the reefs,” David Struhs secretary of Florida’s Department of Environmental Protection stated. While the policy does not expressly forbid companies from putting cables over coral reefs, it does create a number of bureaucratic hurdles, including highly publicized meetings if companies forsake approved routes, Struhs said. The rule prohibits laying cables in the Biscayne Bay Aquatic Preserve and the coastal waters of Monroe County, which is home to the Florida Keys National Marine Sanctuary and the only U.S. barrier reef. An environmental group that studied the effect of cables on coral reefs had hoped cables Page 22 would be banned from larger areas, but it welcomed the rules and said they should be extended beyond Florida and beyond phone line regulation. “What the governor has done is he’s created a model by which other jurisdictions can now regulate,” said Dan Meyer, general counsel at Florida’s Public Employees for Environmental Responsibility (PEER). “The question now needs to be put in front of the Federal Communications Commission,” said Meyer, who plans to attempt to push the U.S. telecommunications regulator in this direction. If the FCC makes a general ruling, then states near coral systems such as Hawaii, Puerto Rico and the Virgin Islands would not need to make individual rulings, Meyer suggested. Gerald Tourgee of the North American Submarine Cable Association, which includes companies such as AT&T Corp. T.N Global Crossing Ltd. and MCI, declined to comment on the ruling. He said that members were very concerned about anything that could affect their options. PEER’s Meyer said the rules should be extended to govern submarine natural gas pipelines in the United States and could be a model for other countries with coral reefs such as Israel, Saudi Arabia and Malaysia. Struhs stated that officials from New Zealand and Australia had already asked about Florida’s rules. The rules, which were approved without debate at a Florida cabinet meeting, will go into effect 21 days after they are filed with the Department of State. COMPANY NEWS NEW WORLD NETWORK LTD. (I) Telgua expands its Network Connectivity through New World Network’s ARCOS Submarine Network On the 13th of August 2003, New World Network, Ltd., a leading provider of advanced, high-speed clear channel and IP services and the principal owner of the Americas Region Caribbean Optical-ring System (ARCOS), announced a major capacity sale and lease agreement that extends Telgua’s national network to Central America, South America and the Caribbean. New World Network will provide Telgua, the leading telecommunication company in Guatemala, with international capacity, which will deliver high quality fibre optic connectivity for existing and future voice, data and IP traffic in Guatemala. This agree- NEW WORLD NETWORK (II) Fibre-Optic Connectivity expanded through an Agreement with Enitel End of July 2003, New World Network, Ltd., a leading provider of advanced, high-speed clear channel and IP services and the principal owner of the Americas Region Caribbean Optical-ring System (ARCOS), signed a Backhaul agreement with Enitel, the primary telecommunication provider in Nicaragua. Enitel will provide backhaul facilities and services connecting the ARCOS-1 landing stations of Bluefield with Managua and other cities in Enitel’s network. “This agreement represents Enitel commitment to expand Nicaragua’s telecommunications services.” said Dr. Carlos Ramos, General Man- ment provides Telgua world-class carrier grade IP services with the scalability, quality of services and reliability of the ARCOS network. This is a key step for Telgua in its ongoing commitment to deliver new and innovative services to customers in Guatemala. “Through this agreement, Telgua will benefit from the latest technology provided by the ARCOS system, which now provides connectivity through multiple Tier 1 carriers with IP Transit services” said Matt Milstead, President and CEO of New World Network. About Telgua Guatemala Telecomunicaciones de Telgua is the leading service provider of fixed line, mobile and long distance communications services in Guatemala. Telgua is a subsidiary of America Movil, which is listed on the New York Stock Exchange as AMX. ager of Enitel. “The unique fibre ring architecture of ARCOS will provide secure and dependable connectivity to Nicaragua service providers at an international level.” “This agreement with Enitel expands the reach and scope of our telecommunications network and allows us to offer seamless fibre-optic capacity to Nicaragua” said Matt Milstead, President and CEO of New World Network. “This relationship allows us to offer additional commercial opportunities through our reliable, fully redundant fibre-optic cable network. We are grateful for the support and leadership of Enitel for allowing us to provide these next-generation services to Nicaragua,” added Milstead. About Enitel Enitel is Nicaragua’s fixed line monopoly. Enitel is controlled by the Swedtel-EMCE consortium, which paid US$33mn in December 2001 for a Page 23 About New World Network New World Network is a carrier’s carrier providing advanced, high-speed bandwidth capacity to telecommunications companies and Internet Service Providers. The company’s Americas Region Caribbean Optical-ring System (ARCOS) is the leading undersea broadband fibre-optic cable network connecting the U.S., Mexico, Central America, South America and the Caribbean. The unique hybrid ownership structure of ARCOS is co-owned by 28 carriers throughout the region and led by New World Network the majority owner with approximately 88.2% interest. For more information Please visit www.nwncable.com Or CONTACT: Martha Salas, Marketing 1+786-274-7163 [email protected] 40% stake in the company. About New World Network New World Network is a carrier’s carrier that provides advanced, high-speed bandwidth capacity to telecommunications companies and Internet Service Providers. The company’s Americas Region Caribbean Optical-ring System (ARCOS) is the leading undersea broadband fibre-optic cable network connecting the U.S., Mexico, Central America, South America and the Caribbean. The unique hybrid ownership structure of ARCOS is co-owned by 28 carriers throughout the region and led by New World Network the majority owner with approximately 86.5% interest. For further information Please visit www.nwncable.com Or Contact: Martha Salas, Marketing Tel: 001 786-274-7163 [email protected] COMPANY NEWS OCEAN POWER TECHNOLOGIES INC. moves up and down on a rigid pole anchored to the bottom. Wave-generated electricity tests The up-and-down movement mechanically creates a flow of hydraulic fluid to drive an electrical generator housed in a canister on the ocean floor, said Don Rochon, spokesman for the Pacific Division of the Naval Facilities Engineering Command, which is overseeing the project. Waters off Kaneohe will be used this fall to see if those non-stop open-ocean swells that make Hawaii a surfer’s paradise can be tapped for cheap, clean electricity. Ocean Power Technologies Inc., of New Jersey, holds a $9.5 million contract from the Office of Naval Research to test if the bobbing of subsurface buoys tethered to the ocean floor can efficiently generate electricity for Marine Corps Base Hawaii-Kaneohe. Project operators are waiting for lower swells usually occurring in September to place the subsea electric cables, after which the PowerBuoy will be deployed, Rochon said. The contract calls for a second device to be deployed and for a two- to five-year test period to see if the project will be expanded for permanent use, Rochon said. “First, we have to prove the technology,” he said. Picture: Ocean Power Technologies Inc. “Everybody feels ... that we’re doing something that may be important to the world,” said George Taylor, president and chief executive officer of the 15-person company he helped start in 1994. Taylor grew up in Australia where he learned to surf and appreciate the force of the waves curling around him. As the swell passes, the 40-foot-long, 15foot-diameter, vertically positioned PowerBuoy Several prototypes of the system have been successfully tested off the New Jersey shore in Tuckerton since 1998. The only visible part of the device will be a brightly colored navigation mast sticking up to warn boaters to avoid coming too close. The idea is to reduce the Navy’s electricity costs and dependence on oil at its shore side bases around the world, but the technological development would also have applications for civilian uses. The pilot project’s first phase calls for one of the company’s trademarked PowerBuoys to be given a buoyancy to ride nine to 12 feet below the surface in 100 feet of water nearly a mile off the Kaneohe base’s Hilltop housing area. serve five to eight homes, Rochon said. PowerBuoy The motor generates direct current in a submerged cable to an onshore transformer to create an average 20 kilowatts and up to a peak of 50 kilowatts of alternating current plugged into the base’s Hawaiian Electric Co. grid, enough to Page 24 Hawaii was chosen for the test because on average it has the highest recorded wave power in the world. The company said that in its technology, bigger is better. If it can develop a 100-megawatt system, the company said its PowerBuoy technology can lower the cost of generating electricity to 3 to 4 cents per kilowatt-hour, slightly cheaper than electricity generated from fossil fuels and much cheaper than wind or solar energy systems. continues on P. 25 COMPANY NEWS nance and operating expenses as well as amortized capital costs of the equipment, the company said. Wave-generated electricity tests continued A 1-megawatt system, the goal of the Hawaii project, would generate power at a cost of 7 to 10 cents per kilowatt-hour, including mainte- OPTIMAR New Marine Technology Company launched! The company, Optimum Marine Technology Limited that will trade under the name Optimar, will provide a range of marine services to clients primarily within the subsea offshore construction and cable installation and maintenance sectors of the specialist shipping markets. Optimar’s principal areas of activity focus on dynamically positioned vessels used in supporting a broad range of specialist subsea operations. Optimar has been formed in association with Derrick Offshore Limited, the world’s leading independent international broker specialising in the offshore energy and subsea cable industries. The new company will meet the growing needs of both the offshore oil & gas and submarine telecom industries for an independent A modular system based on an array of the small and relatively inexpensive buoy like structures would require low-cost maintenance for a lifetime of 30 years, according to OPT’s Web site. specialist with a broad based knowledge of both these specialist marine sectors. The company’s senior management have extensive experience in a wide range of projects including new building construction and conversion of both cable ships and offshore subsea construction vessels. In addition other specialist areas of expertise include offshore diamond mining and submarine rescue operations. Optimar’s in house expertise is further enhanced through a network of independent consultants covering a range of specialist competencies relevant to the company’s core activities. Managing Director of Optimar, Philip Stringer, was formerly Engineering Director of Global Marine Systems Limited, the world’s largest submarine telecom cable installation and maintenance contractor. Mr Stringer also brings significant experience in shipbuilding and repair of specialist vessels gained as the Project Director of Europe’s largest ship conversion and repair company, A&P Group Limited. On the company’s future Philip Stringer stated, “After 33 years experience in the business I decided to use the knowledge gained in shipbuilding, classification, ship owning and conversion and repair as the basis for this new venture. As the Page 25 “We believe that this project will position the company for expansion into the U.S. and the international commercial marketplace,” Taylor said. To explain the global potential, the company’s chief financial officer, Charles Dunleavy, said waves passing through a 10-by-10-mile area of ocean create enough energy to meet the electricity needs of the entire state of California. Picture: Optimar OCEAN POWER TECHNOLOGIES INC. Managing Director of Optimar, Philip Stringer name suggests we aim to provide the marine industry at large with a service that adds value to our clients’ business. The chance to combine the skills of Optimar with such a wellestablished and respected company, as Derrick Offshore is something that I am confident will be successful. ” Sean Harvey, Managing Director of Derrick Offshore added “We have for some time considered developing a marine technology division to complement our commercial activities within the offshore oil & gas and submarine continues on P. 26 COMPANY NEWS OPTIMAR New Marine Technology Company launched! continued telecom industries. The opportunity to team up with somebody as experienced as Philip Stringer is one we are very excited about. Optimar represents a unique capability in meeting the needs of both the offshore and cable sectors of the specialist support vessel market at a time when these areas are increasingly overlapping. The specialist marine market within which Optimar will operate is a dynamic and exciting sector of the shipping industry with significant potential and through Optimar we Page 26 will be able to provide our clients with an even broader range of services”. For further information about Optimar please contact: Optimum Marine Technology Limited Mount View House 10 The Mount Guildford, Surrey GU2 4HN Tel: + 44 (0) 1483 458333 Fax: + 44 (0) 1483 532598 Email: [email protected] Web: http://www.optimaruk.com COMPANY NEWS JW FISHERS MFG. INC. New Features for Fishers Cable Tracking System JW Fishers Mfg. Inc. declared its CT-1 cable tracking system was specifically designed to locate deeply buried power and communication cables. It will locate cables buried both underwater and on land much deeper than can be found with a metal detector, spokesman Christopher Combs said. “The CT-1 is so good at finding cables that underwater cables can often be located and tracked from a small boat, eliminating the need to deploy a diver,” he said. Reports from the field on the effectiveness of the CT-1 have been very positive, Combs noted. Nigel Fluit of New Zealand marine services company Seaworks reported, “This machine performed superbly in what would be considered arduous conditions (surf zones, limited visibility, and strong cross currents). On one job we located and followed a fibre-optic cable for its full length of more than 1.5 kilometres and in another our diver tracked a cable for over 2 kilometres. The audio was of great assistance as it enabled the diver to follow the cable in near zero visibility.” TYCO TELECOMMUNICATIONS Portland Sales office opened The office will service Tyco’s customers who require capacity and co-location solutions for Portland, Seattle, Alaska and the Asia Pacific region. Tyco Telecommunications has announced the opening of a sales office in Portland, Oregon. The office is located within Tyco’s TelExchange Center (TEC) at 1225 W. Burnside Street. Heading the new office is Mark Nicklas, a veteran of the capacity sales market in the Pacific Northwest, who will oversee Sales and Business Development activities. SATYAM HOSTING Big plans for hosting space Satyam Hosting, a part of Satyam Infoway, has commissioned its second Level 3 Internet Data Centre at Tidel Park, Chennai, with a view to emerge as a major player in the Indian hosting space market. “The Tidel Park IDC is uniquely positioned to serve mainly the Asia Pacific region, with the massive international bandwidth link by undersea cable landing in Chennai”, a top executive of the company said. Sify’s first Level 3 hosting facility was commissioned at the Vashi Infotech park in Navi Mumbai in September 2000. Several new options are now being offered for the CT-1 system. One is an O-ring-sealed hard case for the probe, its battery charger, and other accessories. The case is ideal for carrying the probe from job to job or for shipping it to other locations when necessary. For those deep submergence projects, the probe can be purchased with a 500- or 1,000-foot-depth-rated housing. Custom probes are also available that are designed to pickup frequencies other than the standard 25, 50, 60, and 1,024 frequencies. With the impending rationalisation of bandwidth prices, India is poised to emerge as a hosting destination for international customers, J Avinash, president, hosting services, Sify, said adding Satyam already had a leadership in Indian hosting space with a strong base of 200 customers. For more information or for a color brochure on all of Fishers underwater search products, contact Combs on +1 (800) 822-4744, +1 (508) 822-7330, or e-mail [email protected]. Stating that the company’s intention was to become the most preferred hosting partner for He said that the two Level 3 IDCs of Sify also offered disaster recovery facilities for the clients. Page 27 Indian and international organisations, he said Sify had already entered into strategic alliances with major firms like Intel Asia, Compaq and Sun Microsytems in this regard. Through these alliances the company proposed to help Indian customers to host services in the US while the partners would assist the US clients access the Indian markets. Sify expected that with Bharti’s i2i Singapore-Chennai submarine cable landing in Chennai, the bandwidth cost was likely to come down at least by one third so that the company could offer competitive rates for its hosting services, Avinash said. The company planned to source a major chunk of its bandwidth requirement for its IDCs from Bharti, he added. The company sources indicated that to begin with Sify would be buying at least 115 mbps and later go in for more depending on the business prospects. The Chennai IDC of Sify has a capacity of around 5,000 servers. It had already been linked with Bharti’s submarine cable. COMPANY NEWS PTCL SEA-ME-WE 4 desperately needed The Pakistan Telecommunications Company Limited (PTCL) would invest $40-$45 million with 12 other international telecom giants for constructing a new submarine cable linking South East Asia, the Middle East and Europe. Akhter Ahmed Bajwa, Chairman PTCL in an informal chat on the sidelines of ITCN Asia Conference 2003 said that the company was committed to be linked with the second undersea cable as the first one had now become saturated. “We have already signed an MoU (Memorandum of Understanding) for a second undersea cable. But for that we have to invest $40 to $45 million. It would take three years,” he said. an alternate to divert data traffic in case of fibre link failure,” he defined. When referred to satellite bandwidth capacity, which is only 34 megabytes against 155 of fibre link, he said: “It’s a fact, I know. But I hope we would pass these three years safely.” The country’s telecommunications had gone through the worst ever crisis twice this year when it got disconnected from the outside world for over 12 hours due to fibre link damage. The first such incident occurred on April 4 and the last one on July 7. He said that the SMW4 fibre link would enhance the telecom services in the country, meeting all international standards. The PTCL in September last signed a MoU with other 12 international telecom carriers to construct a second undersea fibre cable link called the South East Asia Middle East-Western Europe (SMW4). The cable network would connect 12 countries i.e. Indonesia, Singapore, Malaysia, Bangladesh, India, Sri Lanka, Pakistan, United Arab Emirates, Saudi Arabia, Egypt, Italy and France. The other partners in the cable project are PT Indosat, Singapore Telecom, Telekom Malaysia Berhad, Bangladesh Telegraph and Telephone Board, Bharti Telesonic, Sri Lanka Telecom, Videsh Sanchar Nigam Limited, Emirates Telecom, Saudi Telecom, Telecom Egypt, Telecom Italia SPA and France Telecom. Bajwa said; that the country already has a satellite link as an alternate against the only fibre link for the next three years. “You know we have satellite link available as Page 28 Currently, the traffic data from South East Asia and the Middle East to Europe is routed via smaller capacity cables, mainly South East Middle East Western Europe 3 (SEMEWE-3) and the Fibre Link Around Globe (FLAG). Under plans is the SMW4 project, which would be built using DWDM, with a proposed design capacity of 1.28 Terabits per second (Tbps). The Ministry of Science and Technology (MoST) had given approval for second highspeed undersea fibre link with SMW4 in December 2001, in the third meeting of the National Commission on Science and Technology. COMPANY NEWS DATASTREAM Faster Internet and lower prices expected Malta’s Internet speeds are expected to improve significantly before the end of this year as DataStream is finalising plans to double the current provision for international connectivity capacity to 310 megabits per second from the prevalent 155 mbps. Furthermore, Internet prices are expected to go down even before the introduction of Vodafone Malta’s international gateway, which is expected to start operating next year. In August, the mobile phone operator announced that it had commissioned Alcatel to install Malta’s second international gateway. The majority of Internet service providers welcomed this decision especially because competition lowers prices and improves service delivery. DataStream chief executive, Godfrey Vella, said that DataStream’s plans include the introduction of new services and the provision of much faster Internet access as from later this year, in line with customer requirements and desires. “At this stage, I can tell you that we are already planning the doubling of the international connectivity to 310Mbps, which shall enable us to introduce new services later on during the year. The connectivity rate of 310Mbps refers to actual traffic passing through and not the fibre capacity, which is much higher,” said Mr Vella. “DataStream has over the years been able to offer highly favourable deals to resellers and customers, and this is reflected in the high adoption rates for its services. For example, the requirements for IP transit services have increased from a few Megabits around four years ago to the current 155Mbps. Obviously additional competition can drive higher innovation, which we are ready to exploit,” added Mr Vella. When asked whether Internet prices could potentially decrease once the second international gateway starts operating, Mr Vella said that the effective price of what ISPs pay for IP transit bandwidth is actually a lot less than some figures that have been quoted in the media. “There are factors like volume discounts and bandwidth that has been given free to ISPs for the promotion of broadband usage which considerably reduced the effective price per megabit that ISPs pay. Prices for IP will keep going down but whether the second cable will bring them down further remains to be seen. I am somewhat concerned regarding the lower economies of scale that will be achieved, but obviously this can be counteracted by heightened competition. What is critical for both Maltacom and Vodafone is that the market grows not only in terms of capacity but also in terms of overall revenue,” explained Mr Vella. “Specifically for us, with the current satellite offerings and the Vodafone fibre in place, we will be in a stronger position to negotiate with our suppliers to provide us with lower prices and enhanced quality to pass-on to our customers,” added Mr Vella. When asked about DataStream’s short- to medium-term strategic plans to prepare for the forthcoming competition posed by Vodafone’s international gateway, Mr Vella said that irrespective of the deployment of Vodafone’s optic fibre cable, DataStream is are already facing competition in this area through satellite operators that are offering bandwidth feeds locally. “The Maltacom Group does not have any major problem with competition. Go Mobile, Terranet, DataStream and other member companies have all been operating successfully in a competitive environment for the past few years. I think one needs to understand that a telecommunications company, in any market segment, is subject to competition or regulation. And sometimes both. In all honestly I believe we can operate better in a competitive environment rather than a heavily regulated one,” explained Mr Vella. Page 29 “Besides, Vodafone’s intentions have been known for some time, and thus DataStream has been working within a competitive context with regards to strategy planning and execution ever since,” added Mr Vella. Asked whether he considers it feasible to have a second international gateway Mr Vella said that certain facts have to be taken into consideration. “Maltacom’s fibre optic cable to Sicily can potentially handle Terabits of data and there are really no known scenarios where the capacity of the existing cable will not suffice for Malta’s requirements for at least the next 10 to 15 years. So with the second cable we have a situation where economies of scale will be less readily achievable by either operator,” said Mr Vella. “There is also the redundancy argument that with the one Maltacom cable all our eggs are in one basket. This is not quite true as Maltacom have a microwave backup link to Sicily, which can take the bulk of the current existing bandwidth usage should there be a submarine cable failure. I would argue that ideally, Malta’s alternative submarine fibre link to the rest of the world should have taken a different route than the one taken by Maltacom’s fibre, to North Africa or at least to a different landing point in Sicily. However, this is a liberalised market and Vodafone obviously took the decision which they perceived was commercially most beneficial to them,” added Mr Vella. Commenting on the cost and operational advantages that a second gateway can provide, Mr Vella said that DataStream offers ISPs more than just IP transit services. “Although ISPs are in a better position to reply to this question, DataStream believes that ISPs will now be able to compare the services offered by the operators of both gateways, and this will be beneficial for DataStream too. Overall, DataStream has managed to build a very continues on P. 30 COMPANY NEWS ASIA NETCOM (I) Asia Netcom Delivers NEC’s Ipv6 Multicast Video Streaming Solutions On the 13th of August 2003, Asia Netcom joined NEC in announcing the launch of a powerful regional application-driven solution for business and government agencies in Japan. The NEC solution is delivered over Asia Netcom’s pan-Asian fibre infrastructure and features end-to-end IPv6 support, including network deployment, content delivery and service provisioning. The new product will bring to market a cost-efficient multicast solutions package that facilitates next generation applications such as e-learning and security monitoring systems for both Japanese corporations and government agencies. ‘’We are pleased to be a strategic partner in providing network support to NEC in the BHARTI INFOTEL Fast Road to Growth Bharti Infotel, the group’s merged data and broadband division, has achieved a very fast turnover growing from a revenue base of Rs 40 crore to Rs 120 crore in the last two years. The company is, in fact, now profitable. ”The extremely fast turnaround was achieved as a result of focusing on our core competence which is the high-end integrated private networks. Our business model is to offer integrated network architecture that combines satellite, Internet and fibre for single solutions at the customers end. Competitors like Tata Indicomm are also looking at a similar model now,’’ says Ashok Juneja, CEO of Bharti Broadband Networks. The Bharti broadband group has now captured a 50% share of the data market in the Internet bandwidth space. “The infrastructure provided by the i2i submarine cable, the world’s largest undersea cable project which is a Bharti-SingTel JV, has made bandwidth much more affordable. We are now expecting to grow at 70% this year,’’ says Juneja. deployment of key enhancements to their IPv6based product portfolio, ‘’ said Bill Barney, Asia Netcom’s president and chief operating officer. ‘’This partnership enables NEC to fully leverage Asia Netcom’s MPLS-based network to deliver voice, data and multi-media services to customers in Japan with unsurpassed quality, scalability, security and cost savings.’’ NEC and Asia Netcom have agreed to jointly provide IPv6 multicast broadcast applications in Japan, based on NEC’s multicast solutions and router provisioning, with Asia Netcom providing the network and IPv6 addressing. Combining the two company’s systems integration capabilities, this total solution will not only be secure and cost-effective but provides robust support for high quality broadband content and IP VPN applications. According to NEC, IPv6 multicast video applications currently being adopted by local businesses and government agencies in Japan include: • Video broadcast to multiple locations for corporate seminars, presentations, etc; • New service and product training to multiple office locations and franchisees; • Security monitoring of factories and branch offices in multiple sites across Japan; and • Local information distribution and public announcements from government sources to locally set up kiosks across Japan. Through utilization of IPv6, customers with issues related to duplication of IPv4 private addresses, which may occur in the expansion of a VPN network, or complications with mobile IP or VoIP would be provided with immediate solutions with minimal interruption to their existing LAN environment. NEC and Asia Netcom expect total sales of IPv6 solutions to reach JPY5 billion in three years in Asia, including Japan. About Asia Netcom Page 30 DATASTREAM Faster Internet and lower prices continued expected good relationship with ISPs. Obviously the market liberalisation has transformed some of these partner ISPs into competitive ISPs with the whole Maltacom Group, and we had to find ways to co-exist in this new environment. But overall DataStream has managed to find a balance and we believe that given the right commercial terms, they will continue to be our customers,” said Mr Vella. Vodafone Malta was granted an international gateway license in January of this year, upon liberalisation of telecommunications in Malta. The Vodafone Malta-Sicily cable is part of the international gateway project through which Vodafone Malta will be able to provide international telecommunication services between Malta and other countries. The initial capacity of the system will be 2.5 Gbits/sec and has the potential to increase the capacity to over 1 Tbit/sec. Asia Netcom is a leading provider of city-tocity connectivity, data communications and IPbased solutions and services to enterprise, ISP and carrier customers in the Asia Pacific region. Formed in 2003 by a consortium including China Netcom, Newbridge Capital and Softbank Asia Infrastructure Fund, Asia Netcom is headquartered in Hong Kong with local offices in all major Asian markets, the US and Europe. Asia Netcom owns and operates its own 19,500-km regional fiber optic submarine cable system and offers a comprehensive portfolio of enterprise and carrier services that connect Asia to the rest of the world, while providing global corporations direct access to key markets in Asia and China. For more information on Asia Netcom, please visit www.asianetcom.com. About NEC Corporation continues on P. 31 COMPANY NEWS ASIA NETCOM (I) Asia Netcom Delivers NEC’s Ipv6 Multicast Video Streaming Solutions continued NEC Corporation is one of the world’s leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world’s top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 140,000 people worldwide and had net sales of approximately $40 billion in the fiscal year ended March 2003. For additional information, please visit the NEC home page at: www.nec.com. ASIA NETCOM (II) Indonesia’s Leading VoIP Operator Selects Asia Netcom On the 12th of August 2003, Asia Netcom, the premier pan-Asian network services provider, announced its selection by PT Gaharu Sejahtera to provide key upgrades to its network and core international backbone. Services provided to PT Gaharu Sejahtera will include Asia Netcom’s industry-leading Voiceover-Internet Protocol (VoIP), based on the lat- est MPLS and optical switching technologies. “We are pleased to work with Asia Netcom in the complete optimization and upgrade of our network performance capabilities,” said Titus Soemadi, CEO, PT Gaharu Sejahtera.” “Asia Netcom’s industry-leading network, as well as its leadership in the integration of voice, data and video applications, clearly makes them our best choice going forward.” “In addition, Asia Netcom’s flexibility, service quality and thorough sales consultation reinforces our confidence in selecting them from among a number key regional and global carriers”, added Hendrick Wiratno, Director, PT Gaharu Sejahtera. “We are delighted to be chosen by Indonesia’s leading VoIP operator as provider of IP-based communications solutions and look forward to completing the migration process so PT Gaharu Sejahtera can fully utilize Asia Netcom’s extensive subsea and IP network capabilities,” said Karomul Wachid, Asia Netcom’s general manager for Indonesia. PT Gaharu Sejahtera’s migration to Asia Netcom includes connection of their network nodes in Indonesia, Singapore and Hong Kong on to submarine cables and dedicated lines between Singapore to Hong Kong and Hong Kong to Indonesia, doubling its current IP Transit capacity while improving reliability and latency of their network. Asia Netcom’s VoIP service utilizes the company’s extensive sub-sea and IP networks leveraging its capability as the region’s sole carrier to offer five classes of service over IP VPN. The company uses traffic policing and shaping to provide toll quality voice solutions with flexible PSTN connectivity. Asia Netcom’s voice platform will be extended in the near future to enterprises looking for integrated voice and data solutions with the flexibility to evolve into next generation multi-media applications. About PT Gaharu Sejahtera PT Gaharu Sejahtera is an Indonesia’s leading VoIP operators whose prepaid card’s brand name “Hallophone” is widely recognized in the market. The company is committed to provide first quality VoIP service to the country by relying only on the finest world-class voice transport and termination capabilities and its PoPs overseas. Gaharu is steadily expanding its PoPs domestically and has now covered eight major cities in Indonesia namely: Jakarta, Surabaya, Medan, Bandung, Denpasar, Makassar, Malang Bogor and Palembang. The company offers both pre-paid and post-paid VoIP service to customers in above mentioned cities and also roaming capabilities in Singapore and USA. For more information: Website: www.gaharu.co.id Or Contact Lorain Wong +852 2121 2973 +852 9500 2333 mobile [email protected] or Karomul Wachid +62 21 5157606 [email protected] Is your Press release missing? Contact: [email protected] Page 31 COMPANY NEWS ASIA NETCOM (III) Asia Netcom Provides High Speed Connectivity to Asia’s Fastest Growing Internet Gaming Portal On the 02nd of September 2003, Asia Netcom, the premier pan-Asian network services provider, and Hangame Japan announced a joint initiative to upgrade Hangame’s bandwidth and connection capabilities to meet the explosive demand for Internet gaming in Asia Pacific. Asia Netcom will provide seamless connectivity to Hangame, through its premium IP Transit service, which will enable users to gain faster online access to gaming applications. With the transition to Asia Netcom, Hangame will receive direct connectivity into all major networks in Asia and beyond in a single hop. Additionally, Hangame will have burstable billing, which means flexibility in turning bandwidth up during peak hours and down when usage is low. “Hangame is pleased to be working with Asia Netcom on this service upgrade for our main service line, “ said Yutaka Sano, network systems manager for Hangame Japan. “Asia Net- ASIA NETCOM (IV) Asia Netcom Raises the Performance Bar for IP VPN and IPL into China Asia Netcom, the premier pan-Asian network services provider, has dramatically enhanced its capability to provide one-stop shop connectivity and IP-based telecommunications solutions into the People’s Republic of China with wide-ranging agreements with China Netcom, an incumbent fixed line operator. The two companies recently completed the interconnection of Asia Netcom’s regional fibre network with the national fibre backbone of China Netcom, as well as an agreement with China Netcom to bring Asia Netcom’s portfolio of IP-based products and services to the Chinese market. Under the terms of the agree- com’s quality of service, exception customer care and competitive pricing structure gave them the winning edge over other major providers in the region.” bandwidth options from T1/E1 to 45 Mbps, Fast Ethernet and up to Gigabit Ethernet. “We are delighted to support Hangame in the upgrade of its network connectivity in the Internet gaming arena,” said Richard Carden, chief operating officer of Asia Netcom Japan. With our IP Transit offering backed by the region’s foremost fibre optic submarine cable system, Asia Netcom can ensure plenty of bandwidth to scale up to meet the growing demands at Hangame,” Asia Netcom’s IP Transit Service is provided across the company’s pan-Asian fibre optic submarine cable system – EAC – to offer unparalleled performance, quality and geographical reach. Additionally, because Asia Netcom owns and operates the network, it can provide rapid provisioning of new capacity upon request. Asia Netcom offers variable Hangame Japan is a leading online game service provider established in September 2000. The company is headquartered in Korea and is currently the world’s No. 1 game site providing a variety of online games, including poker, tetris, billiards and bingo. At the turn of the millennium, Hangame pioneered a new genre of Internet games and boasted 17 million members and 210,000 simultaneous connections as of March 2003. With the power a rapidly growing game community, it entered the online game distribution business in 2002 and has expanded its services into various game genres such as online Role Playing Game, Real Time Simulation Game as well as casual games. Now firmly established as the most prominent game portal service provider representing Korea, Hangame is positioned to further establish its position through the entire gaming arena with Hangame Japan and plans to expand into other countries, including China. For more information, please visit us at www.hangame.co.jp. ment, Asia Netcom’s IP VPN will be connected to the IP VPN infrastructure of China Netcom to form a seamless platform with coverage across the whole of China. wide IP VPN infrastructure of China Netcom, offering our customers seamless connections to their offices and manufacturing sites inside China.” “Completion of interconnection with Asia Netcom is key to China Netcom,” says Edward Tian, CEO of China Netcom HK and Chairman/CEO of Asia Netcom. “Through connecting Asia Netcom’s unparalleled pan-Asian Network with China Netcom’s vast mainland capabilities, we have created the first-ever truly comprehensive pan-Asian IP-based broadband network. “ Asia Netcom’s IP VPN offering is delivered on the region’s most extensive MPLS (multiprotocol label switching) infrastructure built directly on top of Asia Netcom’s own regional submarine fibre optic cable system, EAC. EAC is a 19,500+km cable system with nine landing sites in six Asian markets and terrestrial backhaul links to the centre of major Asian cities. Asia Netcom’s IP VPN is the region’s first product to bring five CoS (class-of-service) capabilities to the Asian market. As part of this joint initiative, Hangame will also use Asia Netcom’s data centre partner, Global Access Limited, for collocation services in Japan. “Our customers will now get unprecedented access and performance when extending their corporate networks into China,” says Bill Barney, president and chief operating officer of Asia Netcom. “The agreement allows us to extend the reach of our IP VPN with the nation- Page 32 About Hangame Japan The IP VPN interconnection agreement is complemented with a new Internet peering continues on P. 33 COMPANY NEWS ASIA NETCOM (IV) Asia Netcom Raises the Performance Bar for IP VPN and IPL into continued China agreement between Asia Netcom and China Netcom. The peering agreement enables onehop access to Chinese online content by delivering Internet traffic from Asia Netcom’s global IP backbone directly into China Netcom’s national Internet infrastructure. As a result, Asia Netcom boosts Internet service quality into China to new levels with industry leading latency and round-trip-delay performance. At the same time, Asia Netcom’s close working relationship with China Netcom, the majority shareholder of Asia Netcom, has resulted in the direct Layer 1 interconnection of Asia Net- com’s SDH network to China Netcom’s national fibre backbone. Asia Netcom can now offer leased circuits that extend to the nationwide coverage of China Netcom’s fibre backbone as well as local loops in 80 major cities across China. com to improve service delivery time to customers. Asia Netcom now offers one of the shortest provisioning times for connections in China. “This is a major breakthrough for corporations looking for IPL connectivity into China,” says Mark Simpson, Asia Netcom’s SVP of Infrastructure, Product and Business Development. “The interconnection of the Layer 1 networks of Asia Netcom and China Netcom means that we can offer clear channel connection links all the way to their sites into China.” China Netcom is a facilities-based incumbent fixed line operator in China. The Company has local access network in 10 northern provinces with 68 million access lines and local loops in 35 key southern cities. China Netcom’s network is connected to over 1,000 commercial buildings covering 20,000 enterprises. China Netcom generated US$8.1billion in revenue in 2002. China Netcom provides a full spectrum of services and solutions to meet the broadband telecommunications needs of business and residential customers. In addition to the Layer 1 interconnection, Asia Netcom’s engineers have been working closely with their counterparts at China Net- Page 33 About China Netcom COMPANY NEWS ASIA NETCOM (V) Time dotCom secures its connections Network services provider Asia Netcom has a “strategic working relationship” with Time dotCom Bhd to provide fully secured high capacity connections for endusers in Malaysia. In a statement, Asia Netcom said it was chosen as one of the major provider for Time dotCom’s International Private Line (IPL) based on its ability to deliver on all key requirements mandated by the latter, including reliable aftersales service through its 24x7 service centre, one-stop solution for all network service issues and real-time delivery on all applications. Asia Netcom’s Private Line Service is based on a city-to-city network that provides both GLOBAL CROSSING (I) Expansion of service in Brazil On the 18th of August 2003, Global Crossing announced an expansion of its enterprise service in Brazil with the launch of its Direct Dial Services (DDS). The announcement bolsters Global Crossing’s voice services portfolio in Latin America, building upon the introduction of Direct Dial services to Argentina and Chile earlier this year in conjunction with other data and Internet service offers. Direct Dial Services deliver high-quality international long distance voice services to more than 240 destinations worldwide and are backed by industry-leading voice service level agreements (SLAs) and a unique customer satisfaction guarantee. “Expansion of DDS to Brazil demonstrates our commitment to offer the most advanced and secure telecommunications solutions in Latin America and worldwide,” said Jose Antonio Rios, Global Crossing’s international president and CAO. “Using our global IP network, Global Crossing voice services bring to market door-to-door connectivity as well as flexible POP (Point-of-Presence) interconnections in major Asian markets and other key business destinations worldwide, the company claimed. Built on a fully redundant architecture and operated on a seamless pan-Asian network that Asian Netcom owns, its Private Line product ensures the highest availability and performance levels, along with unmatched service. Formed in 2003 by a consortium led by China Netcom, which includes Newbridge Capital and Softbank Asia Infrastructure Fund, Asia Netcom is headquartered in Hong Kong. It owns and operates its own 19,500km regional fibre optic submarine cable system and offers a comprehensive portfolio of enterprise and carrier services. unmatched clarity and network reliability, backed by world class customer support.” Direct Dial Services’ unique “any distance” pricing offers customers the same low price per minute to call a given country from any one of the countries in which Global Crossing provides international calling. For example, a call to the United States from Brazil or Chile would carry the same per-minute rate. “Any distance” pricing permits global enterprises connected to the Global Crossing network to manage their telecom costs across multiple countries with a stable and competitive pricing structure, on telecom management expenditures. The voice SLAs, which apply to Global Crossing’s dedicated retail voice services, support three key areas: end-to-end network availability of 99.9 percent, guaranteed time of installation, and mean time to restore (MTTR). The satisfaction guarantee allows customers to exit contracts if service falters. Global Crossing received its Multimedia Communications Service license from Anatel in December 2002, which permits Global Crossing to market voice services in Brazil in conjunction with other data Page 34 C2C CEO Resigns C2C Pte Ltd has announced the resignation of its CEO, Mr. Tsunekazu Matsudaira, who has decided to leave to pursue other personal interests and to spend more time with his family. Mr. Matsudaira will continue to guide the C2C team in his capacity as an advisor. Mr. Matsudaira took over the helm of C2C in January 2002, bringing with him more than 32 years of experience in global telecommunications. During his stewardship, he oversaw C2C’s operations in the Asia Pacific region, steering the company through a tumultuous operating environment. Commenting on Mr. Matsudaira’s departure, Mr. Lim Shyong, Chairman of C2C, said: “We are indeed sad to bid farewell to a veteran who has committed tremendous effort and much time to build up C2C’s presence in the wholesale bandwidth community. Under his guidance, C2C has been able to consolidate its market position in terms of its reliability, quality and technical superiority. We thank Mr. Matsudaira for his commendable contributions and invaluable insight and wish him all the best in his future endeavours.” Until a new CEO is appointed, Mr. Hoh Wing Chee, COO of C2C, will serve as Acting CEO in addition to his present responsibilities. Mr. Hoh has more than 20 years of submarine cable operations experience under his belt. and Internet services. Global Crossing voice services are supported by a global customer care team offering multilingual, 24 x 7 support for ordering, provisioning, billing, and additionally, a local single-point-of-contact on account management. With uCommandâ, Global Crossing’s secure, private Web-based network management tool, customers can monitor their voice services, create utilization reports, reroute traffic, order new services, and create and track trouble tickets and bill payment. continues on P. 35 COMPANY NEWS GLOBAL CROSSING (I) Expansion of service in Brazil continued Voice traffic is routed over Global Crossing’s worldwide fiber optic network using either packet-based Voice over Internet Protocol (VoIP) or conventional Time Division Multiplexing (TDM) technology, based on most efficient route available. Both platforms are fully interoperable. With more than 60 voice switches worldwide, Global Crossing’s network is currently GLOBAL CROSSING (II) Global Crossing Adds to Voice Services On the 18th of August 2003, Global Crossing, a leader in providing innovative voice and data solutions for carriers and enterprises worldwide, announced a groundbreaking voice services portfolio that delivers unsurpassed network performance and superior customer support. The voice services offering, the first of its kind within the telecommunications industry carrying more than five billion VOIP and TDM minutes monthly, providing high quality, costeffective, and reliable solutions. The VoIP platform alone carries over one billion minutes per month. VoIP traffic transits Global Crossing’s secure, private core network, rather than the public Internet, and therefore is unaffected by public Internet delays and congestion. tinental Europe, DDS is available in Spain, the United Kingdom, Italy, Germany, France, Switzerland, Belgium and Ireland. In the Nordics, DDS is available in Norway, Sweden, Denmark and the Netherlands; and in North America, in the United States and Canada. For more information about Global Crossing Please visit www.globalcrossing.com All of Global Crossing’s voice and data services are delivered via its worldwide IP network, which provides connectivity to 200 cities in more than 27 countries. In Latin America, DDS is also available in Chile and Argentina. In con- consists of voice services SLAs, loyalty incentives and an unmatched satisfaction guarantee. “Over the past 18 months, Global Crossing has overhauled its systems, operations and procedures to create a vastly superior operating infrastructure,” said Global Crossing CEO John Legere. “To reflect our confidence in the world’s first global MPLS-based IP network, our leading voice and data solutions are now backed by outstanding customer service that goes beyond purely price-based offerings.” Page 35 The voice SLAs, which apply to Global Crossing’s dedicated retail voice services globally, guarantee service availability carried along Global Crossing’s network. In addition, they include local access circuits - also an industry first. These voice SLAs support three key areas: end-to-end network availability of 99.9 percent, guaranteed time of installation, and mean time to restore (MTTR). COMPANY NEWS IBASIS INC. CAT Telecom connects with iBasis for International VoIP Service On the 02nd of September 2003, iBasis, Inc., the leader in Internet-based voice communications, announced that CAT Telecom Public Company Limited (CAT), has directly interconnected with The iBasis Network(TM) for international voice services. By interconnecting with The iBasis Network, CAT is able to benefit from the economics of global Internet telephony and the efficiency of iBasis’ many carrier agreements to terminate international voice traffic. CAT joins the more than 170 carriers worldwide who have formed partnerships with iBasis to send and receive international long distance calls over the company’s Cisco Powered Network, which has carried more than six billion minutes of international calls. By providing Tier One quality international service to these carriers, iBasis has become one of the world’s 10 largest carriers of international traffic (1) and was recently ranked by global service providers as the world’s best international wholesale carrier (2). “In preparation for its imminent privatization, CAT is taking advantage of our cost-efficient high quality international network,” said Ofer Gneezy, president and CEO of iBasis. “By leveraging our many carrier relationships around the world, CAT is able to concentrate on enhancing its competitive position as a leading retail carrier in Thailand, confident that it is delivering the high quality international service.” “Our interconnection with iBasis is enabling CAT to provide the quality and breadth of our international service as we move toward a competitive telecommunications market in Thailand,” said Kittin Udomkiat, Senior Executive Vice President of Telecommunications System, CAT. “As a leader in international VoIP, iBasis has proven its commitment to the same qualities that drive CAT - innovation, quality, and customer service.” According to Telegeophraphy 2003, Asia Pacific is the fastest-growing international telecommunications market in the world, experiencing more than 14% growth and representing more than 17% of total worldwide international PSTN minutes from 2000 to 2001. The region accounts for more than 25% of international VoIP traffic, which is growing at more than 80% per year. With its agreement with CAT, iBasis now has the opportunity to carry some of the more than 400 million minutes of voice traffic that originate in Thailand annually. About CAT Before its corporatization on 14th August 2003, the Communications Authority of Thailand (CAT), a state-owned enterprise, was responsible for the provision of both national postal and telecommunications services. Upon the corporatization, the postal and telecommunication sectors of CAT have been transformed into the separate companies under the name of Thailand Post Company Limited (THP) and CAT Telecom Public Company Limited (CAT) respectively. According to the government’s plan, CAT will be listed in Stock Exchange of Thailand (SET) in the first quarter of next year. As a communication hub linking Thailand with the whole world, CAT is committed to relentlessly develop its national telecom infrastructure and provide the world-class quality services, by constructing both optical fibre submarine cables and satellite networks as well as investing in the intelligent network of ATM switching system. Not only to effectively provide a variety of multimedia telecommunication services, but also CAT wants to ensure the ultimate satisfaction of customers. More information about company and services of CAT can be reached at www.cat.or.th. About iBasis Founded in 1996, iBasis is a leading provider of wholesale international telecommunications services. The company was named by service providers for two consecutive years as the best international wholesale carrier in AtlanticACM’s annual International Wholesale Carrier Report Card. iBasis is a preferred provider for many of the largest carriers in the world, including AT&T, Cable & Wireless, China Mobile, China Unicom, Sprint, Telefonica, Telenor, Telstra, and MCI. iBasis has carried more than six billion minutes of international voice traffic over its global Cisco Powered Network(TM), and is one of the ten largest carriers of international voice traffic in the world. Based on its revenue growth from 1997 through 2001, iBasis was ranked the #8 fastest-growing technology company in North America and the #1 fastestgrowing technology company in New England in the Technology Fast 500 national program sponsored by Deloitte & Touche. LINKS PAGE: Is your company already listed? Visit: www.subcablenews.com/links Page 36 COMPANY NEWS KDDI KDDI to Open New Sales Offices in China On the 19th of August 2003, KDDI announced that it will set up two new sales offices in China. KDDI’s local subsidiary in China, KDDI Shanghai will establish a sales office in Wuxi City Jiangsu Province, and KDDI China will establish another sales office in Dalian City, Liaoning Province. These new offices, combined with the existing offices of the KDDI group, will enable KDDI to cover 80% of those areas in China that have Japanese companies based in them. Therefore KDDI will be able to respond quickly to the communications needs of client companies. Going forward, KDDI will aggressively pursue business development in a Chinese market that is becoming known as the factory of the world, and where many Japanese companies are now expanding their business operations. Opening of the Wuxi sales office of KDDI Shanghai KDDI Shanghai, a Chinese subsidiary and a joint venture of KDDI and China Telecom Shanghai, will open a new sales office in Wuxi City, Jiangsu Province at the end of August. Wuxi and Suzhou are at the centre of the Yangtze Delta Economic Zone, and is the area where many Japanese companies have chosen to establish their businesses in China, starting with manufacturers selling their products in China. Notably, in 2002, Wuxi was the most popular choice of Japanese companies establishing operations in China. KDDI is the first Japanese telecommunications service provider to launch a sales office in this region, giving them an operating base in a region that is expected to see many more Japanese companies establish a base. KDDI in Wuxi will provide total solutions to clients, and will strengthen sales activities for telecommunications network consulting and the building of network systems, engineering and maintenance. Opening of the Dalian sales office of KDDI China KDDI China, a joint venture of KDDI and Toyota Tsusho Corporation, will establish a sales office in Dalian City, Liaoning Province in early September 2003 at the latest. Until now, KDDI has operated a representative office in Dalian.In Dalian, the representative office has obtained a sales license and will be expanding its scope of operations, and will begin activities as the Dalian sales office of KDDI China. The Japanese companies are advancing into Liaoning Province, notably Dalian, in a faster pace. In addition to manufacturers, they are primarily players in the software industries and call center operators taking advantage of the large availability of the Japanese speaking resources. By establishing a sales office in Dalian, KDDI will engage in sales activities related to the Page 37 provision of telecommunications networks and the building of telecommunications systems. Therefore, KDDI will be able to provide a fuller service and customer support to Japanese companies operating in the three Chinese northeastern provinces, namely Liaoning, Jilin and Heilongjiang. About KDDI Corporation KDDI Corporation was established in 1984 and is currently the second largest telecommunications company in Japan, providing a comprehensive range of voice, data, IP and mobile services to both business customers and consumers. After merging with KDD and IDO in October, 2000, KDDI serves over 15 million long-distance subscribers, 1.4 million internet subscribers, 13 million mobile subscribers, and 5 million PHS subscribers. KDDI has 34,000 km of highly reliable domestic network infrastructure, in addition to optical submarine cable systems such as TPC-5, Japan-US CN and China-US CN. KDDI also works to develop advanced technology in the areas of radio & mobile, lightwave, multimedia, and Internet communications. The KDDI Group consists of approx 100 companies covering a wide variety of telecommunications-related businesses such as engineering, facility hosting, submarine cable construction, and R&D. For further information, please visit the KDDI Corporation home page at: www.kddi.com/english/index.html or contact: KDDI Corporation Neil Rosenblatt [email protected] +81-3-5623-1493 COMPANY NEWS KYUSHU UNIVERSITY University transmits real-time Net images of cancer surgery On 23rd of August 2003, Kyushu University transmitted real-time Internet endoscopic images of an operation on a gastric cancer S. B. SUBMARINE SYSTEMS CO. LTD. (I) Both the endoscopic images and the voices of the doctors were carried via the submarine During July and August SBSS completed the recovery, repair and burial improvement of 55 km Chinese domestic cable system – ‘Bei Hai Lin Gao’ in South China. The work included clearance of 9 faults and the insertion of six new joints. After completion the cable was cable, which links the city of Fukuoka, home to the university, and the South Korean port city of Pusan, and from there via the web to the NCC, the university said. Olympus Optical, Kyushu University, Fujitsu Nishi-Nihon Communication Systems, Kyushu Electric Power, and the Korean National Cancer Centre participated in the project. reburied to 3 meters in order to prevent reoccurrence of the multiple faults. The original installation was not done by SBSS. SBSS used her cable barge Fu Xing with ‘Dragon’ Sledge onboard in this complex repair. Picture: www.sbsubmarinesystems.com SBSS Completed 55km Domestic Cable Repair and Deep Relay in China patient to the National Cancer Centre (NCC) of South Korea via an 600 km undersea optical fibre cable with 70Mbps using the DVTS (Digital Video Transfer System), enabling a question-and-answer session between Japanese and Korean doctors. Picture: SBSS Cable Barge “Fu Xing” ‘Dragon’ Sledge Page 38 COMPANY NEWS S. B. SUBMARINE SYSTEMS CO. LTD. (II) C/S “Fu Hai” Picture: www.sbsubmarinesystems.com SBSS newly purchased cableship Fu Hai will enter into Yokohama Zone submarine cable maintenance agreement from October 2003 as one of the Zone operating vessels, replacing the original operating vessel, SBSS cableship Fu Lai. Fu Hai is a modern cableship, which is more capable than Fu Lai. SBSS trust that this replacement will bring benefits to zone cable owners. Picture: www.sbsubmarinesystems.com Fu Hai to Take Place of Fu Lai for Half Year YZ Maintenance from October 2003 C/S “Fu Lai” Your Advertisement could be placed here! Interested? Contact: [email protected] Page 39 COMPANY NEWS HOMER ELECTRIC ASSOCIATION having to raise the price of delivering electricity to those communities. Federal Grant received “Homer Electric has unique situation. We are regarded as a rail belt utility, but we have this remote Bush community,” he said of the south Kachemak villages. “Our members are able to pay rates that are rail-belt rates and are not having to pay the high diesel Bush rates.” The state funds are going to new backup generators for Port Graham and Seldovia, he said. The power lines in that area are susceptible to tree strikes because of the high winds that often pick up during winter. Eckert said efforts to resurrect downed power lines often got prolonged in the past because the weather still was raging when crews were attempting to make repairs. On the 14th of August 2003, Homer Electric Association realized a significant windfall when the U.S. Department of Energy awarded the member-owned utility $1.9 million. The grant will pay for installation of the submarine cable that crosses Kachemak Bay linking the utility’s energy network with south Kachemak communities. The submarine cable, which was completed last fall, is part of a $4-million effort to improve the reliable, affordable energy to Halibut Cove, Nanwalek, Port Graham and Seldovia. The cable also carries fibre optic lines to those residents in anticipation of possible future Internet connections. U.S. Sen. Ted Stevens’ office gave notice that funds would be available for half of the project’s cost from the fiscal year 2002 Energy and Water Development Appropriations bill, and Homer Electric began installing the cable in November 2001. In June 2002, then Gov. Tony Knowles signed a bill for a state grant to appropriate another $2 million to the project. Homer Electric paid the initial expenses to lay the submarine, subsurface cable. The federal grant will essentially reimburse the organization. Interim general manager Rick Eckert said federal money that goes to the project will keep the utility from GLOBACOM Roll out of new lines in Nigeria This project, scheduled to be complete by the end of the year, should alleviate that problem, he said. Normally, communities or villages this size have to pay significantly higher rates because their power is provided by diesel generators. The cost of fuel delivery and storage and generator maintenance are divided among a small number of households and buildings. Eckert said the connection with Homer Electric’s network gives the South Kachemak communities the benefit of efficiencies of scale, adding the cost of powering those homes and buildings in with the rest of the utility’s members. “A central service with tens of thousands of users is more inexpensive than hundreds,” he said. “They’ve got the cost advantages of being Page 40 On the 29th of August 2003, Globacom announced that it would roll out a total of 1.5 million lines to cover six major cities including Abuja, Lagos Port Harcourt, Ibadan, Benin and Ijebu-Ode. Globacom stated that while Abuja lines would be ready now, the other cities would have to wait for their lines until October 2003. Globacom’s Chief Marketing Officer, Mr. Sabahre Das stated that the need to redefine Nigerian telecommunication landscape propels the company into its market adding that it has the innovation and investment strength to meet and exceed subscribers, needs and expectations. He noted that as part of the effort of Globacom to launch itself into the nation’s telephony market, it has acquired 2.5G network to support voice and high speed data transmission, 10,000 km fibre optics national backbone to provide access and reliable voice and data transmission and SAT-3 submarine cable system to ensure a high capacity and clear connection from Nigeria to the rest of the world. served with a larger scale. For an investment of $4 million, that’s substantial because there really are not a lot of people over there.” COMPANY NEWS MCI MCI Ranked #1 As Most Connected Internet Backbone Provider On the 21st of August 2003, MCI reported that its global IP network has been recognized again as the world’s most connected Internet backbone. TeleGeography, a research division of PriMetrica, Inc., in its annual Global Internet Geography Database and Report released that week, found that MCI’s global network continues to serve the Internet with the greatest number of Autonomous System (AS) network connections of any IP network. MCI’s expansive IP footprint, coupled with its direct interconnections, exceeds all other competitor networks and enables its business customers and ISPs to reach more destinations directly through its global IP backbone than any other carrier. “Our number one ranking for Autonomous System connections illustrates MCI’s central role in delivering critical Internet services for our customers and the entire Internet community,” said Vint Cerf, senior vice president, MCI Architecture and Technology. “TeleGeography’s measurements of Internet activity and IP growth provide a useful snapshot of what’s happening on the Internet today, with an eye on what may happen tomorrow.” Alan Mauldin, senior research analyst for TeleGeography added, “The Autonomous System ranking is a measure of the connectedness of an IP network to the rest of the public Internet. While all networks can reach each other on the Internet, the AS ranking demonstrates the closeness of a network to the rest of the Internet, as in number of hops data must take to reach its destination. Since TeleGeography began tracking AS-connectivity in 2001, MCI has ranked first every year.” America, Latin America, UK-Europe, Africa and the Asia-Pacific region. TeleGeography’s global study builds on other independent studies, which confirm MCI’s leadership in the IP space. A recent report conducted by the Cooperative Association for Internet Data Analysis (CAIDA), a nonprofit academic organization that analyzes Internet traffic and capacity issues, found that MCI’s North American backbone is now and has consistently been a core supplier of Internet service based on number of directly reachable IP addresses. www.caida.org. WorldCom, Inc., which currently conducts business under the MCI brand name, is a leading global communications provider, delivering innovative, cost-effective, advanced communications connectivity to businesses, governments and consumers. With the industry’s most expansive global IP backbone, based on company-owned POPs, and wholly owned data networks, WorldCom develops the converged communications products and services that are the foundation for commerce and communications in today’s market. MCI, the company that pioneered the commercial Internet in 1987 as UUNET, has built an IP network that spans six continents and supports more than two million global dial modems. MCI’s Internet backbone provides more than 4,500 IP POPs throughout North Page 41 MCI continued its Internet leadership position by helping to build a trans-Pacific submarine cable named Southern Cross that opened up direct Internet traffic routes from California to Hawaii, Australia, New Zealand and Fiji in 2000. About WorldCom For more information regarding TeleGeography and its 2003 Global Internet Geography Database and Report visit: www.primetrica.com. COMPANY NEWS NORTEL NETWORKS Nortel Networks Builds Optical Long-Haul DWDM Network For Korea Telecom Nortel Networks has built an optical longhaul DWDM (dense wavelength division multiplexing) network for Korea Telecom, Korea’s leading carrier. The network was sold through Growell Telecom Limited, a Nortel Networks distributor. The network – based on Nortel Networks OPTera Long Haul 1600 Optical Line Systems – is designed to help Korea Telecom address new business opportunities in one of the most connected, Internet-savvy countries in the Asia Pacific region. Korea Telecom’s new optical network includes ‘point-to-point’ connections from Gwangju, Kohung to Cheju Island (351 kilometres) and from Gwangju, Namhae to Cheju Island (513 kilometres). “Nortel Networks successfully passed our stringent benchmark test and has proven its leadership in the optical transmission market,” said Sun-Cheol Gweon, managing director of network planning (headquarters), Korea Telecom. “The strong global customer acceptance and proven cutting-edge technology were important factors in our choice of Nortel Networks optical solution.” “This was a major milestone in the local telecommunications industry,” said Soo-Jin Chung, managing director, Korea, Nortel Networks. “It marks both our strong relationship with Korea Telecom and a market leadership position in deploying high-capacity, long haul optical networks worldwide.” 80 channels to maximize capacity on each fiber pair. REACH OPTera Long Haul 1600 uses Raman amplification to provide un-repeatered submarine links of up to 350 kilometres. Raman amplification is a network component that boosts the optical signal to achieve greater distances. It eliminates the need for costly submerged repeaters, positioning service providers to drive lower capital and operating costs compared to traditional submarine solutions. Telstra’s Hong Kong joint venture, Reach, is expected to lose another $150 million this year, Hong Kong analysts say. Deployed in more than 1,000 customer networks in 65 countries, Nortel Networks endto-end optical network portfolio includes next generation SONET/SDH, optical switching, photonics (WDM), and Optical Ethernet products. Nortel Networks has deployed more than 250,000 network elements globally. Nortel Networks was the global market leader in total optical transport equipment, long haul DWDM and metropolitan DWDM in 2002, according to the Dell’Oro Group. “It looks like the second half will be just as tough as the first half,” said Voon San Lai, telecom analyst with BNP Paribas Peregrine. About Nortel Networks Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. OPTera Long Haul 1600 is a 10Gbps platform that uses DWDM to split light into as many as Page 42 US$150m more Telstra’s partner, Richard Li’s PCCW, surprised investors end of August by announcing that undersea cable company Reach had lost about $150 million in the first half of 2003, pulling down expected profits. “We are expecting a loss of $150 million for PCCW (as a result of its 50 per cent share) for 2003.” He expected Reach’s losses would continue into 2004. While many Hong Kong analysts were surprised at the size of the losses, Mr San Lai said BNP had been “warning investors for months that Reach would be the new can of worms (for PCCW)”. He said Reach management had to “take some pretty drastic action” to curb the company’s losses. Reach was formed in February 2001 by amalgamating the international phone businesses of both Telstra and PCCW. Telstra moved last February to write off all of its $1 billion valuation on the Reach venture and no longer equity accounts Reach’s losses. COMPANY NEWS RESON INC. SEABAT 8150 Maps Active Undersea Volcano Researchers from the University of Alaska Fairbanks, School of Fisheries & Ocean Sciences and the U.S. National Marine Fisheries Service (NMFS) successfully mapped an active undersea volcano, the first to be discovered in Alaska’s Aleutian Islands region, in late June 2003. Thales GeoSolutions (Pacific) Inc. (San Diego, California) performed the survey using RESON Inc. (Goleta, California) SeaBat 8111 and 8150 systems. “The survey goal was to TELSTRA Ziggy Switkowski – another two years Chief Executive ZIGGY Switkowski is set to be named as chief executive of telecommunications giant Telstra for at least two more years before the expiry of his contract in March next year. Telstra’s board may indicate its intentions when the company delivers its annual result. The board will meet to sign off the results, but the board papers will also call for discussion of a new term for Dr Switkowski, who has told fellow executives he is keen to stay on. Chairman Bob Mansfield has consistently argued that Telstra is one of the best-performing telcos in the world, leading to what appears to be unanimous support for Dr Switkowski’s reappointment. One source said there was “definitely no disquiet about Ziggy’s performance” and his performance review earlier this year was said by insiders to be his best ever. The board is known to be keen to end speculation about Dr Switkowski’s position, impressed by the way in which chiefs like David Morgan at Westpac and Michael Chaney at Wesfarmers clarified their positions on tenure well before the expiry of their contracts. Senior recruitment industry research and map deep-water corals. The volcano had originally been discovered in 2002, but the last maps of that region were pre-multibeam technology and so they were not very detailed. It is the high-resolution bathymetry and backscatter of the systems that make everything clear and well defined,” said Ed Saade, vice president of survey sciences at Thales GeoSolutions. “The new seafloor map shows the classic, conical shape of a volcano and reveals lava flow fields extending more than 14 kilometres down-slope,” said Dr. Jennifer Reynolds, the sources said no search for a replacement was under way for Dr Switkowski, indicating the Telstra board was set to approve another term. But also up for discussion is the length of the chief executive’s contract, with several directors understood to want to build in shorter-term contracts as part of a trend in the corporate world away from long-term contracts with expensive break clauses. Dr Switkowski replaced American Frank Blount, who had been in the position for seven years. With his reappointment, he is likely to see through the full privatisation of Telstra if the Howard Government can win majority support. Telstra is expected to deliver a full-year profit of almost $3 billion, the lowest since it listed on the stock market in late 1998. The result has been hit by the January write down of $965 million on its Reach submarine cable joint venture — part of its failed $5 billion alliance with Hong Kong-based PCCW. Telstra’s revenues will be about $21.5 billion, up almost 2 per cent, with earnings up less than 2 per cent. Analysts will be watching for a possible further write down of its Hong Kong mobile business, CSL, of up to $1 billion. Telstra has already written off $1 billion on that business but most analysts believe more should come. Page 43 expedition’s chief scientist. The survey took place over a period of three weeks covering depths ranging from 50 to 3,000 meters. A RESON spokeswoman explained that the SeaBat 8111 is a portable, 100 kHz multibeam system. The 24 kHz SeaBat 8150 brings the latest multibeam technology to the deep-water market, she noted. Featuring a unique modular design, 234 dynamically focused beams, and a max update rate of 15 swaths per second, the system can be configured for various beam resolutions (0.5° to 2°) by adding or removing array elements. For more information, visit www.reson.com. Since its expensive second foray into Asia, Mr Mansfield has strengthened the Telstra board with chief executive experience, including Cochlear’s Catherine Livingstone, Coles Myer’s John Fletcher and media veteran Sam Chisholm. The market will be hoping for an improved performance on costs, which were disappointing in the half-year, and any signs of an improvement in the flat sales and earnings outlook. Dr Switkowski’s initial appointment was widely seen as political. He was the outsider in a field of four internal candidates who had only been with the company for 18 months. He had formerly been Optus CEO for a year, after 18 years at Kodak. During his tenure, Telstra’s share price has fallen from $8.50 to $4.70. But sales and profits have improved steadily at least until this year. But in an industry hit by the technology crash and the subsequent telecommunications industry collapse, Telstra has fared well. Unlike other large telcos, it did not plunge billions into new mobile phone spectrum licences or participate too heavily in global expansion. And, in the face of criticism, Telstra maintained an unfashionable full-service model - offering customers a complete set of voice and a data service, which is now back in vogue. COMPANY NEWS AT&T Network Investments probably lost On 08th of September, a senior AT&T Corp executive stated, that Companies will never get back the billions of dollars they spent laying the groundwork for global-data networks, and more of them will go under or be taken over as the price of bandwidth on those networks continues to fall. Justin Sims, the senior vice president responsible for AT&T’s business outside the U.S., said he expects the current trend of con- solidation will continue among the companies who laid thousands of miles of fibre-optic cables in the boom days of the late 1990s and early part of this decade. Companies that invested in building those networks no longer expect to make back their investments, he said. Instead, they are just trying to recoup the money they spend keeping their networks running — “operations and maintenance costs and the incremental costs of supporting a customer.” Mr. Sims said bandwidth prices, the charge for transmitting data from place to place, will Page 44 continue to fall until they are equal to the costs of keeping the networks running, costs that increase as new customers are added. From AT&T’s point of view, it makes sense to focus on being a customer of those networks, rather than buying distressed network operators, Mr. Sims said. Although the U.S. telecommunications giant has itself invested in networks with 299,300 miles of undersea cable, and has the financial resources to buy up cable operators if it wanted, that doesn’t make sense in the current market, he said. PROJECT OVERVIEW REPEATERLESS CABLE SYSTEMS No Area System 1 Europe Canaries 2 Europe 3 Owner/Operator Contract Supplier km Segm. Installed Auna No ? 500 ? No/planned Greece Silk Silk Route Yes Pirelli 280 1 No/Financing outstanding Europe Greece OTE OTE No Alcatel or Fulgor 300 2 No/planned 4 Europe GWEN Project OTE Yes Alcatel 700 2 Installation ongoing 5 Europe Baltic LinxTelecom Yes GMS/Ericsson 2,000 ? No/Financing outstanding 6 Europe Baltic TransTelecom No ? 900 5 No/Rumours 7 Europe St. Petersburg – Stockholm FTA No ? ? 1 No/planned 8 Europe Riga – Stockholm FTA No ? ? 1 No/planned 9 Europe Shetland – Orkney – Scotland Mainland SSElectricity/BP/Shell Shetland Council/ Orkney Council No ? 600 3 No/planned 10 Europe Pathfinder Project Government No ? 1800 Several No/planned 11 Europe North Sea (Grane – Heimdal – Oseberg) Norsk Hydro ? ? 150 2 No/planned 12 Europe North Sea – (Valhall) BP Yes Subsea7 120 Several Installation completed 13 Europe Mediterranean BCN Yes NSW/Corning 10,000 45 No/Financing outstanding 14 Europe Sardinia – Italy Tiscali/Interoute/Enel.it Tender ongoing ? 270 1 No/planned 15 Europe Sardinia – Sicily Tiscali/Interoute/Enel.it Tender ongoing ? 320 ? No/planned 16 Europe Malta – Sicily Vodafone Yes ASN 260 1 No/planned 17 Europe SCYLLANET ? No ? 1,500 8 No/planned 18 Europe Baltic German – Swedish Scientists No ? approx. 250 ? No/Rumours 19 Europe Adriatic Ring HCom Ltd No ? 1,610 5 No/concept 20 Middle East Masirah Island – Sinaw Omantel Yes ? 50 1 No/planned 21 Middle East Kuwait – Iran Kuwait & Iranian Government Yes E-Marine + ? 330 2 No/planned 22 Africa African Festoon System ? No ? 40,000 ? No/Rumours 23 Africa Neptune Nigeria Festoon ? No ? 1,000 ? No/Rumours 24 Africa Angola Festoon Angola Telecom Out for Tender? MOU with Ericsson? 1,700 ? No/planned 25 Africa Namibia Festoon– Namibia Telecom No ? 1,500 (+) Several No/concept 26 Africa Mozambique – Festoon Extensions TDM No ? 1,800 5–6 No/concept 27 Africa Mozambique – South Africa South African Telecom – TDM No ? 300 1 No/concept 28 India India Festoon System ? No ? 15,000 22+ No/concept 29 Asia Sumatra Backbone Project Telekom Indonesia Yes Pirelli/Siemens 345 1 No/planned 30 Asia DMCS Telekom Indonesia No ? up to 1 or 2 No/planned continues on P. 46 Page 45 PROJECT OVERVIEW REPEATERLESS CABLE SYSTEMS No Area System 31 Asia East-West-Link Project 32 Asia 33 Owner/Operator /Telekom Malaysia ...continued Contract Supplier km 300 Segm. ? Yes NSW/Corning Siemens 976 3 Installation ongoing Exelcomindo SSSK Exelcomindo Yes NSW/Corning 760 3 No/planned Asia Perushan Gas Negara Perushan Gas Negara Yes Nexans 219 1 No/planned 34 Asia Vietnam Festoon VNPT No ? 3,000+ ? No/planned 35 Asia ARENA JAMSTEC No ? 1,000 Sev. No/concept 36 Asia Sakhalin 1 Exxon Neftegas Ltd. Tender ? 130 Sev. No/planned 37 Asia Sakhalin 2 Sakhalin Energy Investment Comp. Ltd. No ? 20 1 No/planned 38 Australia Bass Strait Link with Basslink Tasmanian Gouvernment No ? 250 1 No/planned 39 North America Cape Brenton Nova Scotia EastLink Cablesystems Yes International Telecom Inc. ? 2 No/planned 40 North America Iles de la Madeleine to Gaspé ? Yes International Telecom Inc. 250 1 No/planned 41 North America Neptune (Scientific Project) US Government No ? 5,755 Sev. Survey completed 42 North America MARS (Scientific Project) US Government Yes ASN/Mari Pro 101 2 No/planned Permits received 43 North America VENUS (Scientific Project) US Government No ? ? 3 No/concept 44 North America Northstar Extension Northstar Communications No ? 2,100 Sev. No/planned 45 North America FiberWeb Extensions Gulf Fiber Corporation No ? 500 Sev. No/planned 46 North America Chesapeske Bay – Norfolk to Baltimore Clearstream Communications No ? 500 1 No/planned 47 North America/ Hawaii Inter Island Connections Sandwich Isles Communications No ? 1,500 Sev. No/planned 48 Caribbean WINONE Private Investor No ? 4,000 Sev. No/concept 49 Caribbean ARCOS 8 New World Network No MOU with NSW 1,400 1600 Sev. No/concept 50 Caribbean Calypso-1 Telkom Caribe No ? 3,000+ Sev. No/concept 51 Caribbean SMPR-1 Smitcoms Yes NSW/Corning 374 km (+) 1 (+) No/planned 52 Caribbean Florida – Bahamas Cable Crossing Ltd. Yes IT International Telecom 250 km 1 No/concept 53 South America Aquatica Schahin Telecom Yes NSW/Corning and Pirelli 5,000 13 No/Financing outstanding 54 South America Falkland Islands ? No GMSL? 200 1 No/planned 55 South America Festoon Columbia ? No ? ? ? No/Rumours 56 South America Festoon Chile ? No ? ? ? No/Rumours 57 South America Festoon Peru ? No ? ? ? No/Rumours Page 46 Installed PROJECT OVERVIEW REPEATERED CABLE SYSTEMS No Area System Owner/Operator Contract Supplier Route km 1 Europe/ America Amber (TAT15) Consortium 2 Europe B–DEOS 3 Europe 4 Segm. Installed No ? North Atlantic ? ? No/on Hold Consortium of research groups and institutions No ? Norh Atlantic and Southern Ocean 1,000+ (reused cables) several No/concept SR1 Silk Route Yes Pirelli Athens 1,000 1 No/on Hold Europe FARICE TeleDenmark Iceland Telecom – Scottish Power Company Yes Pirelli Iceland – Faroes Scotland 1,600 2 Installation ongoing 5 Europe Svalbard Cable Project NRSE Yes Tyco Telecommunications Harstad – Spitzbergen 2,800 2 Installation ongoing 6 Europe Tenerife – Cadiz Spanish Telecommunication on Companies No ? Tenerife – Cadiz 1,400 1 No/planned financing completed 7 Europe Turkish Mediterranean Fibre Cable System Turkish International Telekom Tender ongoing Pirelli? Turkey – Italy or France or Spain 2,100 – 3,500 ? No/planned 8 Europe ESONET European Sea Floor Observatory Network No ? Norway to Greece 1,500 1 (7 segments) No/concept 9 Europe FLAG WEB Flag No ? Italy – Sicily – Alexandria & Pakistan & other countries in the Persian Gulf ? ? Flag emerged from Chapter 11 – further activity planned? 10 Middle East Pakistan - UAE ? No ? Fujairah - Karachi 1,200 1 No/planned 11 Middle East UAE - Iran ? No ? ? ? 1 No/Rumours 12 Middle East Pakistan India ? No ? ? ? 1 No/Rumours 13 Middle East UAE - India ? No ? ? ? 1 No/Rumours 14 Africa East Coast Cable System ? No ? Durban – Djibouti 7,500 4 No/concept – Feasibility study ongoing 15 Asia Bangladesh – India ? No ? ? ? ? Rumours 16 Asia India – Malaysia – Singapore Maxis/Starhub/ Reliance/ Software Tech. Park No ? India – Malaysia – Singapore 2,500 ? Rumours 17 Asia India – Hong Kong Dishnet DSL No ? India – Singapore – Hong Kong ? ? Rumours 18 Asia APCN2 Interlink APCN2 Consortium No ? Hong Kong – Taiwan 1,600 1 No/planned 19 Asia C2C Extension C2C No ? South Korea – China ? 1 Rumours 20 Asia Singapore – Indonesia – Thailand SingTel/PT Telekom/CAT Yes NEC Singapore – Indonesia – Thailand 1,000 ? Installation ongoing 21 Asia i2i SingTel Yes ASN Singapore – Medan – Chennai 3,200 2 Phase 1 finished Phase 2 on hold continues on P. 48 Page 47 PROJECT OVERVIEW REPEATERED CABLE SYSTEMS No Area System Owner/Operator Contract 22 Asia AAN SingTel/NTT 23 Asia JNAC 24 Asia 25 ...continued Supplier Route km Segm. MoU signed with NEC ?NEC? Across Asia ? sev. SingTel/NTT No ? Japan – North America ? ? No/concept Russia – Japan FTA No ? Sovetskaya Gavan – Japan ? ? 1 1 No/planned Asia Russia – Japan FTA No ? Nakhodka – Japan ? 1 No/planned 26 Asia Russia – Korea – China FTA No ? Nakhodka – Korea – China ? 2 No/planned 27 Asia China-US II Consortium No ? Ring System ? 4 No/planned 28 Asia Fiji – Tahiti ? No Tyco ? Fiji – Tahiti 4,000 1 Rumours 29 Asia Pacific Express Great Circle No ? US-Asia ? ? No/concept 30 India/Australia ? ? No ? Chennai – Perth ? ? No/Rumours 31 Australia Tasman 3 Telstra No ? Australia – New Zealand ? ? Cancelled 32 Australia Australia – Singapore SingTel/ Telstra No ? Australia – Singapore ? ? No/planned 33 North America Cuba – USA ? No ? ? ? ? Rumours 34 North America AUFS-West GCI Yes NEC/OCC/ Global Marine Alaska – Oregon 2,500 1 No/planned 35 North America Nicaragua – USA Telecommunicaciones Phenix, S.A. No ? Nicaragua – USA 1,800 several No/concept 36 Caribbean Barbados – St. Croix ? No ? Barbados – St.Croix 900 ? No/Rumours 37 World Polarnet Private Russian Investors & C&W No ASN/NEC? UK – Norway – Alaska – Oregon – Japan 20,000+ 4–5 No/planned Arctic survey ongoing 38 World India – Middle East Europe Data Access No ? India – Middle East– Europe ? ? No/rumours 39 World Axone Networks Axone Networks No ? UK – Med – Middle East – India 20.000+ ? No/on Hold 40 World SEA-ME-WE4 Consortium No ? France – Singapore 18,500 Are you looking for a job or do you have jobs to offer? Contact: [email protected] Page 48 Installed No/planned Survey compl. On hold No/planned OUTLOOK EDITION NO. 16 OCTOBER 2003 ... will be ready mid of October. In the next Issue you will find • • • Project Updates Company News Press Releases and Market Intelligence, etc. If you have any information regarding • • • • • • • • • • Eckhard Bruckschen Editor of www.subcablenews.com! Dear reader of www.SubCableNews.com, I hope you enjoyed reading the fifteenth issue of the SubCableNews, the Newsletter for the whole industry involved in the submarine cable market. I always try to be up to date with all the information available. Any contribution is welcome and should be forwarded to the editor. ... and you want to share this information, just contact: [email protected] If you want to present • • • • Best regards Your Eckhard Bruckschen DISCLAIMER The information contained in www.SubCableNews.com is derived from sources, New projects New services New technologies New products Carrier plans Tenders Contracts Performances of Contractors Jobs Rumours etc. Your company Your team Your services Your project ... in the next Newsletter, just let me know: [email protected] You want to advertise in the next Newsletter? Please contact: [email protected] which we believe to be accurate but is not guaranteed. www.SubCableNews.com is not responsible for any errors or omissions and disclaims any liability incurred as a IMPRINT consequence of any of the contents of this resource. No part of this publication may be reproduced, duplicated, published or transmitted in any form by any means without prior written permission from the publisher. All rights reserved. EDITOR: Eckhard Bruckschen (E-Mail: [email protected]); PUBLISHER: medienmenschen Verlag; Lucile-Grahn-Str. 27; 81675 Munich; Germany; Tel. +49 89-688-90-448; Fax, +49 8968-15-75; [email protected]; ART DIRECTOR: Claudia Mühlbauer; ADVERTISING DIRECTOR: Christian Bonk ([email protected]); S UBSCRIBER SERVICES: Ines Bruckschen ([email protected]); Internet: www.subcablenews.com Page 49