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. -- [Asentric Consulting Ltd] If a man has in himself the soul of a slave will he not become one no matter what his birth .... -Richest Man in Babylon
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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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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-- [Asentric Consulting Ltd] If a man has in himself the soul of a slave will he not become one no matter what his birth .... -Richest Man in Babylon
Kiania, I have no objections that we have come far, but we seem to start high on the IRU rating. I mean nothing close to USD Millions for an STM London - NY or L.A - Tokyo. The most expensive one is Miami - Rio but its still below 1M and here we starting with 3.5M?. If those were the prices back in 2005 whats the going rate today for any new cable. Regards, Mich. David Kiania | Asentric Consulting Ltd wrote:
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.
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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Skunkworks mailing list Skunkworks@lists.my.co.ke http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks Other services @ http://my.co.ke Other lists ------------- Skunkworks announce: http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks-announce Science - http://lists.my.co.ke/cgi-bin/mailman/listinfo/science kazi - http://lists.my.co.ke/cgi-bin/mailman/admin/kazi/general -- [Asentric Consulting Ltd] If a man has in himself the soul of a slave will he not become one no matter what his birth .... -Richest Man in Babylon _______________________________________________ Skunkworks mailing list Skunkworks@lists.my.co.ke http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks Other services @ http://my.co.ke Other lists ------------- Skunkworks announce: http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks-announce Science - http://lists.my.co.ke/cgi-bin/mailman/listinfo/science kazi - http://lists.my.co.ke/cgi-bin/mailman/admin/kazi/general
Hi Riyaz, Riyaz Bachani wrote:
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 :)
While this model is good its IMHO only to Fujaira which means once has to buy onward capacity to Europe, US and Asia its good with a big CAVEAT! Regards, Mich.
Even if you add Fujeirah to London leases (say anywhere from $20-50 per MB), Your submarine price is only $2 per MB remember ... it can still get to world rates. There's also multiple new cables coming into Fujeirah/Dubai. PS: Add Msa to Nairobi in there as well :) ----- Original Message ----- From: "Michuki Mwangi" <michuki@swiftkenya.com> To: "Skunkworks forum" <skunkworks@lists.my.co.ke> Sent: Monday, May 25, 2009 2:07:26 PM GMT +03:00 Iraq Subject: Re: [Skunkworks] Undersea Fiber Pricing Hi Riyaz, Riyaz Bachani wrote:
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 :)
While this model is good its IMHO only to Fujaira which means once has to buy onward capacity to Europe, US and Asia its good with a big CAVEAT! Regards, Mich. _______________________________________________ Skunkworks mailing list Skunkworks@lists.my.co.ke http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks Other services @ http://my.co.ke Other lists ------------- Skunkworks announce: http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks-announce Science - http://lists.my.co.ke/cgi-bin/mailman/listinfo/science kazi - http://lists.my.co.ke/cgi-bin/mailman/admin/kazi/general
participants (3)
-
David Kiania | Asentric Consulting Ltd -
Michuki Mwangi -
Riyaz Bachani