That's the thing - we're happy with "we've come far from 2005". That's not good enough. Also btw - if you consider financing cost/depreciation on the IRU, plus O&M costs, the price per MB is breaking down to about $420 not the $94. Compare this ... SEACOM's IRU is $3.4m for an stm-1 which is 155mb TEAMS for $3.4m you buy 3.4% of the cable, which is 34gb The cost of the TEAMS cable works out to $2 per MB for the submarine portion :) R ----- Original Message ----- From: "David Kiania | Asentric Consulting Ltd" <kianiadee@gmail.com> To: "Skunkworks forum" <skunkworks@lists.my.co.ke> Sent: Wednesday, May 20, 2009 9:46:17 PM GMT +03:00 Iraq Subject: Re: [Skunkworks] Undersea Fiber Pricing Mich, The site you posted the IRU prices of London - Frankfurt is $3071 are per month, and if you look carefully the longer the distance the more the cost. Both sub-sea cable operators will give you STM capacity regardless of which node (London, India, SA etc) you'll be taking your traffic. We've come quite far pricewise from 2005 I must say. Kiania On Wed, May 20, 2009 at 6:20 PM, Michuki Mwangi < michuki@swiftkenya.com > wrote: I think this is quite expensive for a start. http://findarticles.com/p/articles/mi_m0NVN/is_42_25/ai_n15798206/ This are average pricing in 2005 so i think its likely that this needs to be reviewed downwards. Whats the cost of leasing an STM1 per month going to cost? Regards, Michuki David Kiania | Asentric Consulting Ltd wrote:
I am attending a conference in Uganda where both Seacom and WOICC (EASSY) have made presentations and based on my new found understanding would like to shed light of pricing per MB which has generated both Heat and Light on this forum.
One option available for operators is IRU (Irrefutable right of Use) which will run for 20 years. This means that an operator will purchase the right to use STM-1 (155mbps) which will be the lowest unit of sale for whatever purpose they want.
Seacom will sell an STM-1 IRU for $3.5M WOICC (EASSY) will be selling the same IRU for $2.5M. This translates to per MB cost of US$ 94 per MB (SEACOM) and US$67 (EASSY). End-users pricing maybe higher and contention ratios will enable the same providers recover their investment. Should an operator purchase higher capacity say STM-4 the IRU unit price will lower.
Hope this helps someone.
Rgds
Kiania D.
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