Kordia speaks on undersea cable

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rickcrawley

31 posts

Geek
Inactive user

#33648 8-May-2009 16:03

Kordia just spoke on the undersea cable that would compete with the southern cross cable:

http://www.stuff.co.nz/business/industries/telecoms-it-media/2395776/Kordia-still-looking-at-cable

Does anyone in this forum have any contact with kordia employees? I would like to know an estimate of what they think an isp could charge a customer for 100GB of monthly data because on telecom and other isps it would be $100 or more which is pretty expensive, and I'd also like to know if it will have more capacity than the southern cross cable.

garvani

1873 posts

Uber Geek

Trusted

#213501 8-May-2009 16:13

The first question isnt answerable, no one knows how much they will charge. Kordia wont even have a figure yet! Wait until the cable is laid, expenses have been tallied, board members have talked, margins have been discussed with Isp's and then a figure will be set.. And being that its going to cost in the vicinity of $200m i wouldn't expect them to be any cheaper than the southern cross cable, it will be the same price, they may undercut a little bit, but expecting cheaper internet with big caps is foolish.
No one will know about capacity either, it hasnt been discussed, thats probably what the board meeting in September will entail. Plus capacity is all hardware upgradeable anyway, as the southern cable has proven.

jermsie

302 posts

Ultimate Geek

#213658 9-May-2009 13:42

rickcrawley: Kordia just spoke on the undersea cable that would compete with the southern cross cable:

http://www.stuff.co.nz/business/industries/telecoms-it-media/2395776/Kordia-still-looking-at-cable

Does anyone in this forum have any contact with kordia employees? I would like to know an estimate of what they think an isp could charge a customer for 100GB of monthly data because on telecom and other isps it would be $100 or more which is pretty expensive, and I'd also like to know if it will have more capacity than the southern cross cable.

Ask again in about three years time. It wouldn't be completed until about then, if it goes ahead. So much can happen in three years that can throw something off the rails.

– J

wired

187 posts

Master Geek

#213663 9-May-2009 14:20

rickcrawley: Does anyone in this forum have any contact with kordia employees? I would like to know an estimate of what they think an isp could charge a customer for 100GB of monthly data because on telecom and other isps it would be $100 or more which is pretty expensive, and I'd also like to know if it will have more capacity than the southern cross cable.

If you use the pricing from penultimatehop's pricing on http://www.geekzone.co.nz/forums.asp?ForumId=49&TopicId=33239&page_no=3, which fits with what I have seen in the wholesale business, then the maths would be:

100,000 *12/365.25/24/60 = 2.28 Mbps constant. If you are equally using the upstream and downstream then divide this by 2 = 1.14 Mbps is the size of the pipe that you need. From PenUltimateHop the price for international traffic is $200/Mbps/month then the ISP cost price is $228/month. Add onto top all the other ISP charges aand profit margin and risk margin.

If you are being charged $100/month, then the ISP is assuming (i.e. taking the risk) a) that you won't use your full limit and b) a significant proportion of your traffic does not go international. Sounds like you have found a good deal.

P.S. I don't know Kordia prices and I don't work for Kordia so their raw prices will be different from these.

Spyware

3761 posts

Uber Geek

Lifetime subscriber

#213676 9-May-2009 15:26

100,000 *12/365.25/24/60 = 2.28 Mbps constant. If you are equally using the upstream and downstream then divide this by 2 = 1.14 Mbps is the size of the pipe that you need. From PenUltimateHop the price for international traffic is $200/Mbps/month then the ISP cost price is $228/month. Add onto top all the other ISP charges aand profit margin and risk margin.

P.S. I don't know Kordia prices and I don't work for Kordia so their raw prices will be different from these.

Calculation is order of 60 too high (38 kbps will be fine) for downloading 100 GB over a year. 100 GB over month, one direction, would be 100,000 *8/30/24/60/60 = 300 kbps.

Spark Max Fibre using Mikrotik CCR1009-8G-1S-1S+, CRS125-24G-1S, Unifi UAP, U6-Pro, UAP-AC-M-Pro, Apple TV 4K (2022), Apple TV 4K (2017), iPad Air 1st gen, iPad Air 4th gen, iPhone 13, SkyNZ3151 (the white box). If it doesn't move then it's data cabled.

wired

187 posts

Master Geek

#214205 11-May-2009 20:18

major oops - Thanks for the correction. 300 kbps is more like it (or 150 kbps each way) = $30.

meesham

973 posts

Ultimate Geek

#216117 19-May-2009 21:59

A new fibre cable by Pipe Networks connecting Australia to Papua New Guinea which then connects to Guam has just landed in Sydney: http://www.itnews.com.au/News/103559,pipes-200m-ppc1-cable-lands-despite-personal-threats.aspx

Aparently the increased competition (or anticipated competition once it goes live) has reduced costs for a lot of ISPs.

They mention connecting it to either NZ or Tasmania but Pipe won't be the driving force behind it, I wonder if Kordia will get involved.

meesham

973 posts

Ultimate Geek

#216126 19-May-2009 22:18

I just did some reading up on it, this cable is PPC-1 (Pacific Pipe Cable - 1), the proposed trans-tasman cable by Kordia is PPC-2 (I thought I remembered reading about it a while ago!)

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Regs

4066 posts

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Snowflake

#216128 19-May-2009 22:28

meesham: A new fibre cable by Pipe Networks connecting Australia to Papua New Guinea which then connects to Guam has just landed in Sydney: http://www.itnews.com.au/News/103559,pipes-200m-ppc1-cable-lands-despite-personal-threats.aspx

Aparently the increased competition (or anticipated competition once it goes live) has reduced costs for a lot of ISPs.

They mention connecting it to either NZ or Tasmania but Pipe won't be the driving force behind it, I wonder if Kordia will get involved.

Technically an ISP could buy capacity NZ<>Australia on the SCC and then purchase their international bandwidth directly from Pipe Networks or an upstream Australian ISP provider. This may be one potential option to reduce bandwidth costs for NZ ISPs assuming they re not locked into multi-year contracts.

As has been pointed out before though, international bandwidth is just one of many costs an ISP presents to a customer. At the low end they are making stuff all money so I can see them using the 'heavy users' as a revenue stream for some time yet... regardless of the price of international bandwidth

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