The Planning of System Upgrades in a Competitive and Competitive - PowerPoint PPT Presentation

conference & convention enabling the next generation of networks & services The Planning of System Upgrades in a Competitive and Competitive and Evolving Environment Daniel Hughes and Maja Summers

conference & convention enabling the next generation of networks & services Presenter Profile • Mr Daniel Hughes is the Sales and Marketing Director for the Apollo Submarine Cable System Ltd, the owner and operator of the Apollo transatlantic submarine cable system providing capacity between the USA, UK and France by way of two fully diverse cables. • Daniel joined Apollo in January 2008. Prior to this he worked in the International Network Engineering Group at Verizon Business where he was involved in the development of their global network through both private acquisitions of international capacity and through the planning development and management of consortium submarine cable systems. Daniel was with Verizon Business for seven years. • Daniel has participated in many recent submarine cable initiatives and gained a significant experience in the international telecommunications gained a significant experience in the international telecommunications industry from the commercial and carrier perspective. • He holds a BSc in Applied and Environmental Geology and an MSc in Applied Geophysics and Petroleum Geology from The University of Birmingham. Daniel Hughes Apollo Sales and Marketing Director Email: daniel.hughes@apollo-scs.com Tel: +44 (0) 207 379 8825 Mobile Tel: +44 (0) 7768 937 069

conference & convention enabling the next generation of networks & services Introduction � Apollo operates exclusively in the Transatlantic market. � This region remains fiercely competitive commercially. � Transatlantic capacity growth is consistently � Transatlantic capacity growth is consistently strong (circa 30% pa). � The prevailing economics of the Transatlantic capacity market require upgrades to be efficient.

conference & convention enabling the next generation of networks & services The Basics of Upgrades � The objectives for system owners when upgrading can be sub divided into: – short term = minimising cost – long term = maximising ultimate capacity � Conflict can therefore occur if the long term � Conflict can therefore occur if the long term goal of increasing ultimate capacity comes at the price of short term objective of reducing channel cost. � Discovering an optimum balance is therefore the goal.

conference & convention enabling the next generation of networks & services Timing is Essential � Accurate forecasting is key to maintaining and managing a ‘just in time’ upgrade plan. � The advantages of bulk discounts can be lost through the stagnation of inventory. through the stagnation of inventory. � Sequential small-medium sized upgrades can be preferential to large upgrades if the premium for doing so is low.

conference & convention enabling the next generation of networks & services Technological Development � Upgrading is further complicated by the emergence of new products. � The adoption of a technology that can potentially reduce the cost of equivalent upgrade potentially reduce the cost of equivalent upgrade and increase the ultimate capacity would be a massive leap forward. � Anticipating the demand and or application of new technology is complex.

conference & convention enabling the next generation of networks & services General Considerations � Technology will enable a massive increase in capacity upon in situ fibres in the Atlantic. � If this can be done economically it will: – Extend life of existing systems and delay any risk of capacity shortage. – Increase the earnings from existing infrastructure

conference & convention enabling the next generation of networks & services Ultimate Capacity Growth Ultimate Design Capacity 60 53 50 38 40 32.6 Tbit/s 30 25 20 10 0 2007 2008 2009 2010 Year – Sold capacity has doubled in the Atlantic from 5Tbit/s- 10Tbit/s in the period 2007-2010. – Ultimate capacity has doubled in the same period, and is likely to dramatically increase again in the near future. – The unlit capacity in the Atlantic is increasing over time.

conference & convention enabling the next generation of networks & services 40Gbit/s Drivers: Carriers � Short term : Cost � Medium term : Interface � Long : Ultimate Capacity

conference & convention enabling the next generation of networks & services 40Gbit/s and Cable Owners • Early adopters of any technology carry risk: •Implementation •Financial •Financial • Rewards though likely outstrip the risks. •Extension of system life. •Greater flexibility and capability. •Cost advantages •Increased ultimate capacity.

conference & convention enabling the next generation of networks & services Conclusions � The planning of upgrades is a key skill. � The potential for enhancing the ultimate capacity and in an economic manner is enormous. enormous. � Against current growth trends, existing infrastructure has the ability to support demand through upgrades.

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