conference & convention enabling the next generation of networks & services PRIVATE vs. ZONE MAINTENANCE AGREEMENTS MAINTENANCE AGREEMENTS Ove Smidt ALCATEL-LUCENT
conference & convention enabling the next generation of networks & services Presenter Profile Marine and technical background with the education as a master mariner. Place Started in industry in TDM 19 years ago. picture Working with the day-to-day operation of the TDM Vessels, project management of here projects as well as marine maintenance projects as well as marine maintenance then becoming responsible for all the sales and marketing activities. Now Alcatel-Lucent responsible for the sales activities of maintenance services and system sales in the Baltic and Nordic Region. Ove Smidt Senior Sales Manager Email: ove.smidt@alcatel-lucent.com Mobile Tel: +45 20201619
conference & convention enabling the next generation of networks & services Opening remark(s) Once a cable ships and her crew is on the cable fault ground they will do their best regardless of type of agreement and contractual arrangement. contractual arrangement. Marine maintenance services are very costly; most people consider it to be expensive – although it’s very cheap.
conference & convention enabling the next generation of networks & services Agenda Characteristics for the two main types of maintenance agreement The Challenge The Challenge Where will the resources come from What will attract the needed resources when money is a constraint
conference & convention enabling the next generation of networks & services Characteristics Zone Private Service Shared Shared/individual availability Priority Often based on Size Often based on type of fault type of fault Service level Common Basic service common/individu al SLA’s etc. Pricing Common Individual structure Control Cable owners Contractors
conference & convention enabling the next generation of networks & services Services outside the basic scope Charting and Documentation Management of Chromatic Dispersion Offshore Liaison/Cable Awareness Repeater and Cable testing Cable Station support during a repair Land Cable repair operations UJ Jointing Kits Provision Wet plant spares provision
conference & convention enabling the next generation of networks & services The Challenge During the next 2-3 years many of the world’s cable maintenance agreements have to be renewed. Agreements then have to be operative for another 3 – 5 years 5 years The world’s cable ship fleet is steadily growing older and shrinking Will there be sufficient and adequate resources to renew the (all) agreements – and will the performance be adequate.
conference & convention enabling the next generation of networks & services Age Development inst/maint. • Average age of Installation Maintenance maintenance vessels 25 approx 6 years older than 20 installation vessels here n Years Av. Age in Y 15 15 • Age of maintenance • Age of maintenance vessels increase faster 10 • Going to be worse in 3-4 5 years time with no new 0 2008 2010 vessels coming online
conference & convention enabling the next generation of networks & services Age Development inst/maint. • Installation vessels Installation Maintenance having a healthy age 9 distribution with only a 8 7 few vessels becoming able Ships 6 obsolete due to age 5 No. of Cab 4 • Maintenance vessels 3 having a less healthy age 2 1 distribution more vessels 0 becoming obsolete due to 5-10 11-15 16-20 21-25 26-30 >30 Years age • Going to be ugly in 3-4 years time unless replaced
conference & convention enabling the next generation of networks & services Where will the ships come from - 1 New builds/modifications Cable ships currently serving other markets “Dip” in installation market releasing ships “Dip” in installation market releasing ships Better utilisation of current resources both within market segment and across installation and maintenance “Insurance model”
conference & convention enabling the next generation of networks & services Where will the ships come from - 2 New builds/modifications require large Capex. Also cable ships currently serving other markets can require significant capex due to markets can require significant capex due to the need for modifications prior to return to the cable industry Only likely if reasonable and predictable revenues can be obtained
conference & convention enabling the next generation of networks & services Revenue erosion Atlantic region maintenance revenue development Index ��� Shipbuiling price index Index revenue needed Consumer price index ��� Atlantic revenue index ���� ����
conference & convention enabling the next generation of networks & services Where will the ships come from - 3 Short term (4-5 years) most likely we will have to cope with the current resources Long term market forces will sort the problems – but due to the long lead time for new – but due to the long lead time for new resources (2-3 years) - customers may face some shortage of service unless the contractors/customers put proactive measures in place
conference & convention enabling the next generation of networks & services Where will the ships come from - 4 Short term •Extending life time for current maintenance ships •Extending life time for current maintenance ships •Hoping for a “dip” in the installation market •Creating a better utilisation of current resources within both market segments and across installation and maintenance
conference & convention enabling the next generation of networks & services Using an older ship Increased maintenance cost to run the ship. Increased contractual risk due to ships performance weakening Contractual risk of being forced to replace ship Contractual risk of being forced to replace ship during contract period Risk of dramatic change in legislation (emission control and green house gases)
conference & convention enabling the next generation of networks & services Using a newer installation ship Revenues that can be obtained unlikely to cover both operational cost and all financial cost Installation market being cyclic – chance of Installation market being cyclic – chance of missing opportunities (contractor/supplier)
conference & convention enabling the next generation of networks & services Better utilisation of current ships Better location of base ports – a more global view Better flexibility between installation and Better flexibility between installation and maintenance ships Strategic spares or USC kept on board
conference & convention enabling the next generation of networks & services Better utilisation of current ships -2 Good service Poor/no service PM ZM
conference & convention enabling the next generation of networks & services How to do it – Who can do it The key words are “who is in control” To get the best utilisation tight control of the resources and rapid response is essential – so far the zone model has not been able to deliver this model has not been able to deliver this Therefore the most likely outcome is that the private model in some form will be the prevailing one in the future But I’m happy to be proved wrong
conference & convention enabling the next generation of networks & services Food for thoughts Investors should urgently diversify the web of undersea cables that serve as the world's information and banking arteries to address soaring demand and piracy concerns and reduce the risk of catastrophic outages. outages. So says a report by a multinational research project that calls for the building of global backup routes for the submarine network that carries almost all international communications, including financial transactions and Internet traffic. Tue Apr 20, 2010 LONDON (Reuters)
conference & convention enabling the next generation of networks & services Questions ?
2010 conference & convention enabling the next generation of networks & services The 7th International Conference & Convention on Undersea Telecommunications Pacifico Convention Plaza Yokohama & InterContinental The Grand Yokohama 11 ~ 14 May 2010 www.suboptic.org
Recommend
More recommend
