[LINK] PPC-1 lights up

[stephen at melbpc.org.au]

Pipe Networks PPC-1 fibre sees first light

The company initiated testing of its Sydney to Guam link

Spandas Lui  24 August, 2009 12:53:00 
<http://www.arnnet.com.au/article/315869/pipe_networks_ppc-
1_fibre_sees_first_light?fp=16&fpid=1>


Pipe Networks (ASX: PWK) has initiated testing of its Sydney to Guam 
optic fibre link with a successful first light transmission. 

Pipe first signed an agreement with Indian company, VSNL International, 
in 2006 to construct the cable connection at an estimated cost of $200 
million. 

The submarine line, dubbed the PPC-1, was intended to introduce much 
needed competition to end the international capacity stranglehold of 
Southern Cross Cable Network and Australia Japan Cable. Optus and Telstra 
are major stakeholders in the two companies respectively. 

The project was thrown into financial turmoil after a credit facility 
from Westpac and ANZ fell through. It was eventually salvaged after a 
group of Internet service providers (ISPs) ramped up their financial 
commitment by signing long-term capacity leases - some for as long as 15 
years - on the impending Pipe link. 

So far iiNet, Internode, Primus, Telikom PNG and VSNL are the ISPs that 
have jumped onboard the Sydney to Guam express. 

According to Pipe Networks chief executive, Bevan Slattery, the first 
light was successfully transmitted and received across PPC-1 at 1.45pm on 
August 23. 

“We had protocols to ensure the signal arrives correctly and back,” he 
said. “We tested the strength of the data and had to make sure no there 
were no errors as well as data encryption to make sure everything is 
working fine at an optical level.” 

This is the first phase of testing and will run for four weeks and Pipe 
will then begin to light up capacity to kickstart assessments for other 
segments beyond Guam. 

Circuit trials from Japan to Australia and Japan to the US will commence 
soon afterwards and Pipe expects to wrap up testing and hand over 
capacity within the next 6-8 weeks. 

While the cable will not be commercially ready until its official launch 
date of October 8, other cable companies are already feeling the heat. 

Southern Cross recently slashed prices for circuits to the US from 
Australia and New Zealand by 15 per cent, a reduction of more than 50 per 
cent over the past 18 months. 

“We have already seen existing cable owners dropping their prices 
significantly as the first effects of the competition,” Slattery said. 

“Service providers have taken steps to remain competitive in the market 
place.” 

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Cheers,
Stephen