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# 80934 6-Apr-2011 11:07
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Just received:


Pacific Fibre announces release of invitation to tender

Pacific Fibre announced today that its Invitation To Tender was released to selected vendors for the Pacific Fibre Cable System connecting Australia to New Zealand and the US. The 5.12 Tbit/sec two fibre pair system, which includes new build cable landing stations in each country, will allow Australian and New Zealand carriers to secure supply of sufficient capacity to take advantage of the NBN and UFB fibre rollout plans. 

Mike Constable, Director for Business Development, responsible for leading the build of the cable system, said  "This is a significant milestone in the project development phase and shows the momentum Pacific Fibre has built towards achieving its goal. The 450 page document reflects the considerable work we have put into the design and configuration of the cable system and provides the basis of the contract which we expect to execute with a selected vendor in the third quarter this year."

The Invitation To Tender was sent to established leaders in the submarine cable system supply industry.  Vendor responses are due in mid-May with contract negotiations expected to commence with a preferred vendor soon after.

Pacific Fibre CEO Mark Rushworth said  "We are delighted with the experience and progress that Mike and his team of experts have brought to Pacific Fibre to drive forward the cable design and build process."

Mark also confirmed today that Pacific Fibre is building the cable alone. "A joint build Memorandum of Understanding expired earlier this year, freeing us to move ahead more quickly. We have been assuming a solo-build system for several months now and remain firmly on track to finance and deliver the system in 2013. Our proposed design greatly expands capacity for carriers and multi national businesses, and provides much needed diversity for the region.”




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  # 455886 6-Apr-2011 12:29
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It's really great to see they are progressing on making this happen.

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  # 455892 6-Apr-2011 12:39
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freitasm: Just received:


Pacific Fibre announces release of invitation to tender

Mark also confirmed today that Pacific Fibre is building the cable alone. "A joint build Memorandum of Understanding expired earlier this year, freeing us to move ahead more quickly. We have been assuming a solo-build system for several months now and remain firmly on track to finance and deliver the system in 2013. Our proposed design greatly expands capacity for carriers and multi national businesses, and provides much needed diversity for the region.”

Hmmm.

 
 
 
 


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  # 455893 6-Apr-2011 12:47
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Pacnet dropped out
http://www.nbr.co.nz/article/pacific-fibre-pacnet-part-ways-ck-90111

So they will have to raise the the funding needed to build the cable(s) ~$400m total, without Pacnet bringing in 50%.

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  # 455894 6-Apr-2011 12:52
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Ragnor: Pacnet dropped out

Yes, which is interesting on many levels.  One wonders whether Pacnet had concerns about the long term viability of IP transit in ANZ.


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  # 455896 6-Apr-2011 13:11
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We could speculate that Pacnet got a sweeter deal from SXC that made investing in an alternative cable not as attractive. You could even speculate Pacnet may not have had true intention to fund a cable just used it as leverage to get a better long term contract/deal from SXC.

SXC would have had account managers working overdrive in either case.

All just speculation... would be nice to be a fly on the wall!

I still think there is a relatively strong business case for a competing sub marine cable from NZ/AU to the US.

 

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  # 455919 6-Apr-2011 14:04
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Ragnor: We could speculate that Pacnet got a sweeter deal from SXC that made investing in an alternative cable not as attractive. You could even speculate Pacnet may not have had true intention to fund a cable just used it as leverage to get a better long term contract/deal from SXC.

SXC would have had account managers working overdrive in either case.

All just speculation... would be nice to be a fly on the wall!

I still think there is a relatively strong business case for a competing sub marine cable from NZ/AU to the US.

 

All valid possibilities and valid speculation, although I'd say that a single cablesystem approach is not Pacnet's typical style, especially when investment or ownership possibilities of the cablesystem is available.

I've heard from Pacnet execs they are finding ANZ a particularly challenging market at the moment.

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  # 455928 6-Apr-2011 14:13
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Is Pacific fibre actually planning a fibre ring with cable location separation? Can't seem to find anything about the cable path




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  # 455932 6-Apr-2011 14:19
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Beccara: Is Pacific fibre actually planning a fibre ring with cable location separation? Can't seem to find anything about the cable path

No. The picture on their website is WYSIWIG apparently.

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  # 455937 6-Apr-2011 14:24
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No wonder the build price is so cheap, they are missing 1/2 of it! Without a backup path the cable would be crippled by any kind of damage to it. The bandwidth might be cheap but no way I'd buy any except to handle peak loading




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  # 455975 6-Apr-2011 15:04
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Does the SxC have a backup path?

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  # 455978 6-Apr-2011 15:06
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Most problems are the result of previous solutions...

All comment's I make are my own personal opinion and do not in any way, shape or form reflect the views of current or former employers unless specifically stated 

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  # 455994 6-Apr-2011 15:40
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Southern Cross needed to be looped like it is because at the time of construction there was no other alternative. If it failed all communications (other than satellite and those able to be routed across Australia) would be lost.

Pacific Fibre will not require that kind of backup because they will likely have a capacity agreement with SxC enabling them to offload traffic in the event of disaster. SxC will likely have a similar agreement with Pacific Fibre eventually.

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  # 456002 6-Apr-2011 15:54
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Maybe, Pacfici Fibre will need and agreement like that or will just sell transit at costs to reflect the lack of failover but I seriously doubt SxC will buy transit, they already have a loop thats been effective in stopping outages




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  # 456091 6-Apr-2011 20:22
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PenultimateHop:
I've heard from Pacnet execs they are finding ANZ a particularly challenging market at the moment.


and i'm finding pacnet particularly challenging in ANZ.  They route all the traffic for asia via Japan and the routing and speed to datacentres based in Hong Kong and Singapore is, basically, crap.  Ironically it got better *after* the Japan quake cause they switched the route via Aus instead of LAX.  Why datacentres in HK/SG?  Global vendors seem to think that HK and SG are great places to house datacentres for ANZ customers - with pacnet we would be better off with a US datacentre.

Go pacific fibre!  Maybe with their new service, all the non-telecom ISPs will buy service/routes to asia that are somewhat shorter!




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  # 456125 6-Apr-2011 21:37
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Beccara: Yes
http://en.wikipedia.org/wiki/File:Southern_Cross_Cable_route.svg


It's still quite fragile in that for example: A major volcanic event in Hawaii could take out both cable legs to US.

The geographic resiliency of going through Samoa (pacific fibre) rather than Hawaii may be extremely useful to us if the worst should ever happen with Hawaii's active volcano's.

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