[Submarine Cable] Excess Capacity in 2016 ?

 

From my analysis on submarinecable map 2015 ; year 2016 will have excess capacity because about 7 cable system will RFS in that year.

imageThe capacity will enough for 10 years demand forecast by most of carriers. If you look back in year 2004-2005; the same pattern happend in the submarine cable industry. In average 10 years booming pattern.

What are strategy that carrier can adopt to ensure the capacity are utilised, generating more revenues or expedite ROI or pay back period on investment ?

I think the following approach or strategy can be adopted by carriers:

1. Pre RFS Sales ; meaning that sell the capacity in 2015 instead of wait till it is RFS in 2016.

2. Capacity swap between carriers in different cable systems with different routes.

3. Start Early Marketing Р start to contact your potential customer early ; get their forecast; co location / space required and destinations.

4. OCU – Occasional Common Use – for middle east countries may prepare for World Cup. I think that is one of reason why Ooredoo are investing in both SMW5 and AAE-1.

5.I will add more after after this  .

 

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