Letter to a friend from Jean Devos
More cable please! My dear friend,
My Dear Friend
I guess you read the recent announcement by the Chinese company Zhongtian, by which they have developed a deep sea (5000m) submarine cable and already invest “Botany Bay”27M$ in a specific plant in Jiangsu Province. The press release makes no secrecy about Chinese recently ambition,a modest stating novel, that”Zhongtian is Ithe published whose title awaiting certificate from the ITU, which would enable is Botany Bay. It is the place in Australia where it to compete worldwide”. One could say welcome Alcatel established a on board the already long history of such submarine cable faccables factories. Some of thesesubmarine factories have enjoyed tory in 1989 as part of a very long life (more than 100years) and some quite short one (less than 10). Five werefor closed its plants contract the in the last 30 years: ITT plant (San Diego), STC Tasman 2 link. In this Southampton (UK), Alcatel Port Botany (Australia), same bay, where two Alcatel ex STC Portland (Oregon), Arcofelice Pirelli centuries before the (Italy). French expedition I am sure you picked up“La thisPérouse” other information made of that Fujitsu has been selected by Reliance for the two ships, La Boussole construction of their Flag NGN network (5000 to
10000 km) despite the fact that Fujitsu have no access to any existing cable source. The Fujitsu‘s competitors are controlling one way or another all of the existing cable factories which are fully loaded. A persistent rumor says that NSW will supply a recently and l’Astrolabe, landed in 1788 to discover that developed deep sea cable which is under qualification Captain Cook was already around bearing the with coming sea trials. British flag. So Botany Bay is now for me the So youof seea my friend,which we arebecomes back to thisa dilemma: symbol dream reality! Is the cable a commodity or is it a strategic element? Tasman 2 has been yet another chapter My answer is clear it is not a commodity for many in this long Anglo-French competition! The reasons! For Huawei to enter into the submarine awardmarket to Alcatel cameand outcompete as a bigagainst surprise system segment theto many, including Alcatel. Everybody was Alcatel-Lucent, NEC inside or Fujitsu, it is key to get access tonaturally a source of cable. Alcatel and Lucent have got rid expecting the British to win that batoftle, their cable but for thewas submarine and suchbusiness an expectation at that one time (Calais). Same for Tyco Electronics who have kept very logical. their own capability. And NEC is now indirectly There controlling OCCwere so many difficulties and misunderstanding between Australia and One ofthe themain reasonone is that mastering the submarine France, being the French presence cable technology is not an easy job and cannot be in the Pacific area, the worse being the nuclear done overnight. Today this looks like a given! But bomb experiment Tahiti! Rainbow the existing know howinhas been The learnsad through a
Warrior was still in everyone’s memory. number of event difficult experience. Like me you have It worked a certain stageamong of yourothers carrierthat in theSTC cable is for at these reasons (UK) side of our activity. You perfectly know the cultural rejected the Alcatel‘s suggestion to come with a difference which exists between the two main parts joint bid, to offer a “European” solution. of a submarine system: The electronic, repeaters, One of thesystem winning factors has been terminals, software, integration on one sidethe Port-Botany cable factory. Such factory and was a and the cable side which includes cablea jointing installation. These two areas veryTelstra) differentand strong requirement from requests OTC (now setthe of skills which rarely exists in a given company. If Australian Government. in the same company, only corresponds to theSuch core a Alcatel was theone most motivated. competencies. The transmission equipment especially factory could expand its influence in the Pacific the submerged repeaters has been for the last 40 where other players historically years the the very three strategic element, the were real barrier to wellfor established in this region, which entry whoever was considering comingrepresents in this very specificpart business . Thismarket. is why weThey have saw seen athis a large of their very stable industry picture during that period of time factory as a risk for their existing facilities! with 4 historical players, 4 transmission house: ATT/ SubOptic ‘87 in Versailles came at the right time. Tyco, Alcatel, NEC and Fujitsu. These four system It is where the Australian houses have enjoyed full accessteams to verydiscovered experiencedthe French cable sourcemodel, a close cooperation between Alcatel and FT, exactly what they wanted to esBut the market surge we are presently seeing tablish in their country. require suddenly more cable and the shift toward Mysome friend, are changed since, Asia raises new things ambition. The cable side of ourbut one thing stays true: When you offer something, activity is once again a very strategic element. There is the no reason why the NSW or the Zhongtian could notare reader can see between the lines if you succeed they need to realize thatand the ocean depths or notbut genuinely motivated sincere. Then are extremely demanding!! your offer becomes really attractive and this My friend, I feel excited by these new challenges! opens the route to “Botany Bay.”
Jean Devos See you soon.
Jean Devos Submarcom Consulting
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