conference & convention enabling the next generation of networks & services The Myth of the All-Inclusive Turnkey Contract Edward West (Cable & Wireless Worldwide)
conference & convention enabling the next generation of networks & services Presenter Profile Edward West joined Cable & Wireless in 2000, since when he has worked on Place systems including Japan-US, Maya-1, picture PanAm, EIG and WACS. He is a Chartered here Engineer and Chartered Physicist. He is a Member of the Institute of Physics and a Member of the Institution of Engineering and Technology. Edward West Principal Engineer Email: edward.west@cw.com Tel: +44 20 7528 2815 Mobile Tel: +44 7957 808680
conference & convention enabling the next generation of networks & services Presentation Overview Turnkey contracts and their application to the submarine cable system market Alternative modular approaches Purchasers as system integrators Summary and conclusions
conference & convention enabling the next generation of networks & services Section 1: Turnkey Contracts and the Submarine Cable System Market Is submarine system project implementation as simple as just “turning the key”?
conference & convention enabling the next generation of networks & services Turnkey is an Unquestioned Principle • Submarine projects are almost always Place Image based on turnkey Here supply • Non-turnkey solutions are usually rejected out of hand
conference & convention enabling the next generation of networks & services Ideal Model of Turnkey Supply (Supplier) (Purchaser)
conference & convention enabling the next generation of networks & services Simple Model of Turnkey Supply • Product/service provided ready to use Supplier • Appropriate to simple products which can be provided “off the shelf” Purchaser
conference & convention enabling the next generation of networks & services Benefits of Turnkey Supply Simple, integrated organisational structure Purchaser’s input minimised One stop shop
conference & convention enabling the next generation of networks & services Fit to Submarine Cable Industry • Complex, technically Complexity challenging product • Bespoke solution • Devolution of work Integration • Different products from different business units Purchaser • Purchaser involvement needed in implementation effort • Overall project includes Purchaser-only activities
conference & convention enabling the next generation of networks & services More Realistic Model of Submarine System Procurement Marine Sub Plant SLTE Submarine Backhaul SDH System Equipment Supplier Supplier Supplier Purchaser PG NOC Station M&E NA Land Route Station Back- Synchro- Buildings haul nisation
conference & convention enabling the next generation of networks & services Section 2: Modular Approaches to Submarine Cable Procurement Modular applications of turnkey procurement to submarine cable projects
conference & convention enabling the next generation of networks & services Geographical Division of Work • Different segments provided by different suppliers • Risk and capability shared by the various suppliers
conference & convention enabling the next generation of networks & services Division of Work by Product • Different suppliers provide different Place Image products Here • Example: SDH procured separately from sub plant • Best supplier for individual job
conference & convention enabling the next generation of networks & services Section 3: Purchasers as System Integrators Purchasers take on responsibility of ensuring that the completed system performs correctly as an integrated whole
conference & convention enabling the next generation of networks & services Purchasers as System Integrators • Different suppliers for marine activities, submerged plant and terminal equipment • Responsibility of ensuring that the completed system performs correctly as an integrated whole rests with the purchaser • C&W Worldwide has acted as systems integrator
conference & convention enabling the next generation of networks & services Purchasers as System Integrators • Pros: – Flexibility – Multi-vendor environment – Cheaper Best solution • Cons: Price – Multiple contracts Purchaser effort Purchaser risk/ – Increased responsibility Purchaser responsibility
conference & convention enabling the next generation of networks & services Other Factors • Purchasers are risk-averse • Long haul / regional system • Consortium / private system • Ability of Purchasers to contribute significant asset is key factor – Redeployed submerged plant – Shore end re-use – Terminal equipment
conference & convention enabling the next generation of networks & services Section 4: Summary and Conclusions
conference & convention enabling the next generation of networks & services Summary Theoretical turnkey Submarine turnkey Purchaser Supplier Purchaser integration
conference & convention enabling the next generation of networks & services Conclusions Benefits of turnkey supply have not always been realised in the submarine cable system market Purchasers who have the capability can perform the system integration themselves Revival of previous incarnation of industry?
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
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