North American Network Operators Group

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Re: connectivity outside the US

  • From: Geoff Huston
  • Date: Sun Jun 01 03:08:30 1997

Undersea cable was expensive - the cable economics were geared to a return
on investment linked to a high investment risk and relatively slow uptake of the
cable,due to a linear phone growth model and an E1 cable transaction unit.

More recent cable projects have large increase in available capacity for essentially
the same project cost - which will trigger a steady decline in the lease price
once the large cables come on line.


>Actually, i do not understand why undersea capacity is so
>expensive.  Cable is more expensive, yes; but the paths
>are much straighter, and there's no need to purchase
>rights of ways (except for shore-side strips).  There's
>no need to dig trenches -- you just drop the cable off the