On Tuesday 21 April 2009 06:30:17 am McTim wrote:

> * It’s pricing, stupid: Brian Herlihy, CEO of Seacom
> spoke about offering prices of between US$50-300 an mbps
> per month...

Be mindful that this price only relates to SEACOM. The cable 
still has to interconnect to other systems depending on 
where you're landing the capacity.

The cost of leasing capacity on those systems isn't 
necessarily taken into account in the figure above.

> and whilst IRUs might add as much as 20% in
> interest payments, this is still much sunnier that the
> US$4-6,000 per mbps currently being charged for
> satellite.

Agree.

IRU also turns the cable into capex, which can be amortized 
over a period of time, rather than opex, which hits you 
forever. 

> Better still, Seacom is promising this price
> wherever the capacity lands, whether in a coastal country
> or one inland.

On which side? The African side or the EU/Middle East side?

Either way, this is doubtful. If I want capacity from 
Kampala to Telehouse, UK, I don't think this price includes 
the backhaul between .ug and .ke, as well as backhaul from 
the UK cable landing station to Telehouse.

Keep this in mind - ask whether the price is city PoP to 
city PoP, or whether it's CLS (cable landing station) to 
CLS.

And remember, this is just the cost of the Layer 1 capacity 
itself. It does not include the IP port(s). That, you'd have 
to worry about on your own once the cable lands where you 
need it to (although I'm sure SEACOM have a product bundle 
where they can include an IP port as well).

> Paul Edwards, Chair of Nigeria’s largest
> CDMA operator Starcomms said he had been offered US$100
> per mbps on one of the west coast fibres.

Again, the factors mentioned above need to be double 
checked.

> In addition,
> O3B’s pricing is pitched fairly close to these numbers.
> The traditional satellite operators are stuck: they
> either have to take what’s left over or come up with
> something innovative technically which will improve their
> price offer.

Well, fibre is the speed of light :-). It doesn't get any 
faster.

> So it sounds like small ISPs CAN buy from SEACOM,...

I'd imagine this would have been the case from the 
beginning. You just need to figure out who, in the local 
country, can provide connectivity to SEACOM.

From what I can tell, both MTN and UTL will, on the .ug 
side.

How much they'll do this for, is the question - there's a 
lot of sections to pay for for the capacity before you even 
start thinking about IP.

> and
> pick it up inland!! w00t!

Technically, yes, you can pick it up inland as long as 
there's a local operator that can interconnect with SEACOM.

But the SEACOM cable, itself, is only at the cable landing 
station in Mombasa.

Cheers,

Mark.

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