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New Undersea Cables Brings Competition

Posted by howdous | Posted in Broadband Internet | Posted on 05-09-2009

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The coming of SEACOM in July and the impending landing of two other undersea cables, The East African Marine System (TEAMS) and the East African Submarine System (EASSY), has seen telecoms and service providers rattle and outmaneuver each other with quick monopoly deals in what is seen as a lucrative industry.
But the hopes of an expectant public who looked forward to a sudden decline in bandwidth price rates (from about $3,000 to $100) is being scampered by these exclusive service provider contracts.
While SEACOM has boosted capacity and enhanced speed through more availability of bandwidth, the market still awaits a open declaration of price reductions by service providers.
Last week, WIOCC, a special purpose investment vehicle owned by a group of 12 African telecoms who also own 30% stake in the EASSY set to land at the coast in June 2010, was unveiled again indicating a new ownership paradigm.
Donald Nyakairu, the Uganda telecom chief legal counsel, explained that the convergence of these telecoms under WIOCC was to enable them access bandwidth cheaply from EASSY. utl is the only shareholder in WIOCC in Uganda.
“The more shares you have, the lower the price,” explained Nyakairu.
Experts now believe that when EASSY enters, service providers who want to buy broadband must go through the local shareholders of WIOCC and those who have direct shareholding in EASSY.
Most of the companies that combined to bring undersea fiber optic cables made huge investments into the venture. SEACOM and the upcoming EASSY project have borrowed money from the World Bank.
Market watchers say because these companies need to recoup their monies and pay off the loans, the last mile end user consumer may just have to wait a little longer for cheaper internet.
The issue of actual prices to the end user is also a matter that service providers and investors bringing the undersea fiber cables are dodgy about discussing.
EASSY bandwidth is designed in such a way that users do not pay upfront for the service.
“You will pay as you use, not pay upfront,” said WIOCC chief executive officer, Chris Wood.
Wood believes that in one way or the other, pressure will be exerted on the service providers and end user bandwidth prices will have to come down.
Nyakairu says within a month, utl, which is a market leader in data service, will revise its rates downwards.
In the meantime, uganda telecom has reportedly been forced to buy SEACOM bandwidth direct as a short term solution as it awaits the entry of EASSY in which the telecom has invested.
Information available indicates that because Infocom has a monopoly over cheap SEACOM bandwidth, it has been able to slash prices.
This has in turn forced other service providers who invested in the other cables that have not landed to connect to SEACOM.
“Infocom has been taking away our clients because they have a monopoly over SEACOM,” said a top telecoms executive.
The executive director of Uganda Communications Commission, Patrick Masambu, described the impending entry of EASSY as a major milestone for the industry and the country.
“Their (EASSY) efforts are not a coincidence, they are meant to take our economies forward,” he said.
The monopoly by service providers, the underdeveloped infrastructure, together with the huge financial undertakings of these companies might mean access to cheap internet is a distant dream.
source Individual.com – 3 September 2009


THE battle for territorial superiority in the information and communication technology terrain now shifts to the provision of bandwidth.

The coming of SEACOM in July and the impending landing of two other undersea cables, The East African Marine System (TEAMS) and the East African Submarine System (EASSY), has seen telecoms and service providers rattle and outmaneuver each other with quick monopoly deals in what is seen as a lucrative industry.

But the hopes of an expectant public who looked forward to a sudden decline in bandwidth price rates (from about $3,000 to $100) is being scampered by these exclusive service provider contracts.

While SEACOM has boosted capacity and enhanced speed through more availability of bandwidth, the market still awaits a open declaration of price reductions by service providers.

Last week, WIOCC, a special purpose investment vehicle owned by a group of 12 African telecoms who also own 30% stake in the EASSY set to land at the coast in June 2010, was unveiled again indicating a new ownership paradigm.

Donald Nyakairu, the Uganda telecom chief legal counsel, explained that the convergence of these telecoms under WIOCC was to enable them access bandwidth cheaply from EASSY. utl is the only shareholder in WIOCC in Uganda.

“The more shares you have, the lower the price,” explained Nyakairu.

Experts now believe that when EASSY enters, service providers who want to buy broadband must go through the local shareholders of WIOCC and those who have direct shareholding in EASSY.

Most of the companies that combined to bring undersea fiber optic cables made huge investments into the venture. SEACOM and the upcoming EASSY project have borrowed money from the World Bank.

Market watchers say because these companies need to recoup their monies and pay off the loans, the last mile end user consumer may just have to wait a little longer for cheaper internet.

The issue of actual prices to the end user is also a matter that service providers and investors bringing the undersea fiber cables are dodgy about discussing.

EASSY bandwidth is designed in such a way that users do not pay upfront for the service.

“You will pay as you use, not pay upfront,” said WIOCC chief executive officer, Chris Wood.

Wood believes that in one way or the other, pressure will be exerted on the service providers and end user bandwidth prices will have to come down.

Nyakairu says within a month, utl, which is a market leader in data service, will revise its rates downwards.

In the meantime, uganda telecom has reportedly been forced to buy SEACOM bandwidth direct as a short term solution as it awaits the entry of EASSY in which the telecom has invested.

Information available indicates that because Infocom has a monopoly over cheap SEACOM bandwidth, it has been able to slash prices.

This has in turn forced other service providers who invested in the other cables that have not landed to connect to SEACOM.

“Infocom has been taking away our clients because they have a monopoly over SEACOM,” said a top telecoms executive.

The executive director of Uganda Communications Commission, Patrick Masambu, described the impending entry of EASSY as a major milestone for the industry and the country.

“Their (EASSY) efforts are not a coincidence, they are meant to take our economies forward,” he said.

The monopoly by service providers, the underdeveloped infrastructure, together with the huge financial undertakings of these companies might mean access to cheap internet is a distant dream.

source Individual.com – 3 September 2009

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Tata Connects Africa with Europe, Asia, India

Posted by howdous | Posted in Broadband Internet | Posted on 01-09-2009

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Due to a reporting error, the third paragraph in the MIS Asia story “Tata Communications connects Africa with Europe, Asia, India” posted Thursday misrepresented the submarine cable network in the story. The story has been corrected on the wire and the corrected paragraph follows:
According to the Indian giant, utilising the SEACOM network, together with similar cable systems SAT3 and SAFE, allows Tata Communications to offer a fully redundant service by supplying access via multiple routes to anywhere in the world, and can reach Europe, for the first time, via three different routes: SAT3, SEACOM and SAFE — SEA-ME-WE3/4.
source InfoWorld – 31 August 2009


Due to a reporting error, the third paragraph in the MIS Asia story “Tata Communications connects Africa with Europe, Asia, India” posted Thursday misrepresented the submarine cable network in the story. The story has been corrected on the wire and the corrected paragraph follows:

According to the Indian giant, utilising the SEACOM network, together with similar cable systems SAT3 and SAFE, allows Tata Communications to offer a fully redundant service by supplying access via multiple routes to anywhere in the world, and can reach Europe, for the first time, via three different routes: SAT3, SEACOM and SAFE — SEA-ME-WE3/4.

source InfoWorld – 31 August 2009

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Tata Communications and Neotel Launch SEACOM Cable System

Posted by howdous | Posted in Broadband Internet | Posted on 28-08-2009

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Mumbai – August 26, 2009 –Tata Communications, a leading provider of a new world of communications, and Neotel, South Africa’s first converged communication national operator, today announced that they have launched service on the SEACOM cable system, the first undersea submarine cable system that will connect the African continent to Europe, Asia and India.
With the SEACOM system, Tata Communications will be able to provide fully integrated network services from South Africa, Mozambique, Tanzania and Kenya to its networks in Europe, Asia and India.
As part of its commitment to expand communications services to and from emerging markets, SEACOM will enhance connectivity for businesses based out of Europe, Asia and India by providing them with cable and capacity options into South Africa never before available. Tata Communications’ subsidiary Tata Communications Transformation Services Limited (TCTS) will manage the network administration, operations and maintenance of the 17,000 km cable system supporting 1.28 Tbps of capacity.


“As a truly global service provider, Tata Communications is able to provide end-to-end solutions in India, Europe and South Africa, as well as onward connectivity to major business destinations in the US and Asia,” said Byron Clatterbuck, Senior Vice President, Global Transmission Services at Tata Communications. “The SEACOM cable system sets Tata Communications apart from our competitors by bringing unprecedented business value to enterprises and service providers.”
Tata Communications is operating the landing point in Mumbai while Neotel, will manage the landing point in South Africa. Customers will enjoy seamless connectivity between the SEACOM cable system and the Tata Communications global network, along with Neotel’s converged network in South Africa.
Earlier this year, Tata Communications announced its increased shareholding in Neotel which effectively made Neotel the only operator in South Africa that is involved in all of the current and planned submarine cable systems confirmed to land in South Africa. Thus far, Neotel has made an investment of R20m in the landing station and facilities necessary to land SEACOM, not including backhaul connectivity. Neotel has just concluded a backhaul agreement with SEACOM that allows for capacity to terminate in Johannesburg rather than Mtunzini, creating a tremendous impact on the costs of capacity.
The launch of SEACOM, which augments the SAT3/SAFE cable system, also means that Tata Communications and Neotel are now able to provide a fully redundant service by supplying access via multiple routes to anywhere in the world, and can reach Europe, for the first time, via three different routes: SAT3, SEACOM and SAFE – SEA-ME-WE3/4.
“SEACOM will add another alternative to the market, and consumers will benefit from the resulting competition,” says Stefano Mattiello, Chief Sales and Customer Service Officer at Neotel. “The relationship between Tata Communications and Neotel, and their involvement in all of the international cables, means that businesses and consumers will now really have access to a seamless service connecting them to the rest of the world at affordable rates.”
Through SEACOM, Tata Communications is able to expand the reach of the Tata Global Network (TGN) to destinations on the East Coast of Africa. Additionally, the SEACOM cable system strengthens Tata Communications world-class IP and MPLS services, which are primed for significant growth in the rapidly growing region.
About Tata Communications
Tata Communications is a leading global provider of a new world of communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.
The Tata Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs, and nearly 1 million square feet of data center and collocation space worldwide.
Tata Communications’ depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services, leadership in global international voice, and strategic investments in operators in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited), Nepal (United Telecom Limited), and subject to approval by the Chinese government, China (China Enterprise Communications)
Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange. (NYSE: TCL)
About Neotel
Neotel is South Africa’s first converged communications network operator. It provides a range of value-added voice and data services for businesses, wholesale network operators and providers and consumers using its pure-IP Next Generation Network, powered by Neotel’s high-performance fibre optic backbone. Neotel connects the major centres in South Africa to each other and to the world, directly linking the country into Tata Communications’ global Tier 1 network. Neotel offers fresh thinking, a creative approach and flexible solutions for communications in South Africa.
Forward-looking and cautionary statements
Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications’ expected financial position, business strategy, the future development of Tata Communications’ operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications’ network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company’s communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications’ industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications’ control, include, but are not limited to, those risk factors discussed in Tata Communications’ various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Tata Communications is under no obligation to, and expressly disclaims any obligation to, updates or alters its forward-looking statements.
source TATA Communications – 26 August 2009


Mumbai – August 26, 2009 –Tata Communications, a leading provider of a new world of communications, and Neotel, South Africa’s first converged communication national operator, today announced that they have launched service on the SEACOM cable system, the first undersea submarine cable system that will connect the African continent to Europe, Asia and India.

With the SEACOM system, Tata Communications will be able to provide fully integrated network services from South Africa, Mozambique, Tanzania and Kenya to its networks in Europe, Asia and India.

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