conference & convention enabling the next generation of networks & services The Myth of the All-Inclusive Turnkey Contract 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 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 � 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 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 Here based on turnkey supply 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 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 � 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 effort needed in implementation • 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 System Equipment Equipment Supplier Supplier Supplier Purchaser PG NOC Station M&E NA Station Land Route Back- Synchro Building haul -nisation s
conference & convention enabling the next generation of networks & services Section 2: Modular Approaches to Submarine Cable Procurement Modular applications of turnkey procurement to 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 various suppliers
conference & convention enabling the next generation of networks & services Division of Work by Product • Different suppliers provide different Place Image Here products • Example: SDH • 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 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 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 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 • 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 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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