Suppliers of the World's Submarine Fiber-optic Telecommunications Systems: The New World Order

This publication has been discontinued on July 19, 2011.

Updated report coming soon.

Suppliers of the World's Submarine Fiber Optic Telecommunications Systems

Published: September, 2011

Product code: 191252

Please inquire us for availability.

Introduction

Although some system suppliers succumbed to the vicious market downturn in 2002-4, others survived by reworking their business models, and still others now see an entrepreneurial opportunity to come to market with a new paradigm. So the submarine fibre optic industry is tentatively viewing 2005 as potentially the starting point for resurgence. In this new report, Pioneer Consulting assesses the scale of the market opportunity and provides an objective basis for comparison of the new business models which system suppliers are employing.

The Report contains detailed and comprehensive profiles of each supplier, reviewing their history, organization, capabilities, recent supply history, financial status, and product design parameters :

Terminal Equipment for Repeatered Systems

• Design Approach
• Physical Density
• Coding Techniques
• Powering
• Undersea Supervision
• Operations Support Systems
• Dispersion Compensation
• Protection Mechanisms

Terminal Equipment for Repeaterless Systems

• Output Power
• Receiver Sensitivity
• Maximum Distance
• Distance-Bandwidth Tradeoffs

Branching Units

• Powering Functions
• Optical Functions
• Mechanical Constraints

Repeaters

• Maximum Fiber Count
• Output Power
• Maximum Depth
• Physical Dimensions
• Noise Figure
• Cable Interface
• Gain Equalization Approach
• Supervisory Technique & Capabilities
• Component reliability & availability

Submarine Cable

• Maximum Fiber Count
• Design Approach
• Maximum Depth
• Fiber Breaking Load
• Tensile Strength (Transient / Operating)
• Diameter
• Electrical Resistance
• Armoring
• Fiber Characteristics

The report also focuses on suppliers efforts to develop new technologies which will be available in the next generation of submarine cables and what these new technologies will do for the market e.g. cost reduction, improved efficiency, higher throughput etc.

From this database of supplier information, Pioneer synthesises two key points of focus in order to create a context for this research :

Market Dynamics. The Report will identify key trends in the system supply market, such as:

• Demand Drivers & Constraints
• Regional Supply-Demand Forecasts
• Project Financing
• R&D initiatives
• Submarine-Terrestrial Convergence
• Industry Consolidation & Re-Alignment
• Increased Repeaterless Distances

Comparative Supplier Analysis

The Report will assess the offerings of suppliers, calculate market shares, and identify key capabilities required for success in the repeatered and unrepeatered markets.

This is important ground-breaking research because, not only has the systems supply market changed but there are also new Customers looking for guidance in choosing the right supplier and the right technology for their needs, new regions of the world where market liberalisation is forcing regulators to work overtime, and new sources of capital taking a fresh view of the industry.

Table of Contents

1. Executive Summary

• 1.1. Report Aims
• 1.2. Report Structure
• 1.3. Methodology
  • 1.3.1. Data Collection
  • 1.3.2. Data Analysis
• 1.4. Market Dynamics
  • 1.4.1. Demand Drivers
  • 1.4.2. Industry Consolidation
• 1.5. Supply-Demand Forecasts
  • 1.5.1. Intra-Regional
  • 1.5.2. Intercontinental
• 1.6. Comparative Supplier Analysis
  • 1.6.1. Critical Factors for Success
  • 1.6.2. Threat of New Entrants

2. Introduction & Methodology

• 2.1. Purpose of this Report
• 2.2. Report Scope
  • 2.2.1. Submarine Fiber Optic System Components
  • 2.2.2. Market Dynamics
  • 2.2.3. Supply-Demand Forecasts
  • 2.2.4. Comparative Supplier Analysis
  • 2.2.5. Submarine Fiber Optic Technology Primer
• 2.3. Report Methodology
• 2.4. Report Organization

3. Submarine Cable Systems Supplier Market Dynamics

• 3.1. Market Growth, Drivers & Constraints
  • 3.1.1. Broadband Internet Penetration Growth
  • 3.1.2. De-regulation
  • 3.1.3. New Markets
  • 3.1.4. Capacity Oversupply
  • 3.1.5. Project Financing
• 3.2. Industry Consolidation & Re-Alignment
• 3.3. Changing Customer Profiles & Requirements
  • 3.3.1. System Ownership
  • 3.3.2. Shift from transoceanic systems to regional systems
  • 3.3.3. Cost Reduction
• 3.4. Technological Trends
  • 3.4.1. Longer Range Repeaterless Systems
  • 3.4.2. Repeatered Systems
  • 3.4.3. Terrestrial & Submarine System Convergence
  • 3.4.4. Turbocharging
• 3.5. Conclusion

4. Forecasts of Demand & Supply for Submarine Cable Systems

• 4.1. Forecast Methodology
  • 4.1.1. Internet Methodology & Assumptions
  • 4.1.2. Corporate Data & Voice Traffic Demand Methodology & Assumptions
• 4.2. Worldwide Demand Forecasts
  • 4.2.1. Intra-regional Demand
  • 4.2.2. Intercontinental Demand
• 4.3. Upgrade and New System Forecasts
  • 4.3.1. Methodology (see also data tables for Exhibit 4 3, Exhibit 4 4, and Exhibit 4 5)
  • 4.3.2. Intra-regional Supply-Demand Balances
  • 4.3.3. Intercontinental Supply-Demand Balances
  • 4.3.4. New System Construction Scenario

5. Submarine System Technology

• 5.1. Cable
  • 5.1.1. Fiber Containment
  • 5.1.2. Cable Strength
  • 5.1.3. Cable Armor
  • 5.1.4. Jointing
  • 5.1.5. Fiber
• 5.2. Repeater
  • 5.2.1. Mechanical
  • 5.2.2. Electrical
  • 5.2.3. Optical
  • 5.2.4. Supervision
  • 5.2.5. Reliability
• 5.3. Repeatered Terminal (SLTE)
• 5.4. Repeaterless Terminal
• 5.5. Power Feed Equipment
• 5.6. Branching Unit
• 5.7. Operations Software
  • 5.7.1. Functionality
  • 5.7.2. Software Layers
• 5.8. References

6. System Supplier Profiles

• 6.1. Alcatel Submarine Networks
  • 6.1.1. Alcatel: General Company Information
  • 6.1.2. Alcatel: Terminal Equipment for Repeatered Systems
  • 6.1.3. Alcatel: Terminal Equipment for Repeaterless Systems
  • 6.1.4. Alcatel: Cable
  • 6.1.5. Alcatel: Repeaters
  • 6.1.6. Alcatel: Branching Units
  • 6.1.7. Alcatel: Power Feed Equipment
  • 6.1.8. Alcatel: References
• 6.2. Fujitsu
  • 6.2.1. Fujitsu: General Company Information
  • 6.2.2. Fujitsu: System
  • 6.2.3. Fujitsu: Terminals for Repeatered Systems
  • 6.2.4. Fujitsu: Terminal for Repeaterless Systems
  • 6.2.5. Fujitsu: Cable
  • 6.2.6. Fujitsu: Repeaters
  • 6.2.7. Fujitsu: Branching Unit
  • 6.2.8. Fujitsu: Power Feed Equipment
  • 6.2.9. Fujitsu: Equalizers
  • 6.2.10. Fujitsu: References
• 6.3. NEC
  • 6.3.1. NEC: General Company Information
  • 6.3.2. NEC: System
  • 6.3.3. NEC: Terminals for Repeatered Systems
  • 6.3.4. NEC: Terminal for Repeaterless Systems
  • 6.3.5. NEC: Cable
  • 6.3.6. NEC: Repeaters
  • 6.3.7. NEC: Supervisory System
  • 6.3.8. NEC: Branching Unit
  • 6.3.9. NEC: Power Feed Equipment
  • 6.3.10. NEC: References
• 6.4. Tyco Telecommunications
  • 6.4.1. Tyco Telecommunications: General Company Information
  • 6.4.2. Tyco: Terminals for Repeatered Systems
  • 6.4.3. Tyco: Terminal for Repeaterless Systems
  • 6.4.4. Tyco: Cable
  • 6.4.5. Tyco: Repeaters
  • 6.4.6. Tyco: Branching Unit
  • 6.4.7. Tyco: Power Feed Equipment
  • 6.4.8. Tyco: Element Management System
  • 6.4.9. Tyco: References

7. Submarine Sub-System Suppliers

• 7.1. Azea Networks
  • 7.1.1. Azea Networks: General Company Information
  • 7.1.2. Azea Networks: Terminal Equipment
  • 7.1.3. Azea Networks: References
• 7.2. Draka NK Cables
  • 7.2.1. Draka NK Cables: General Company Information
  • 7.2.2. Draka NK Cables: Cable
  • 7.2.3. Draka NK Cables: References
• 7.3. Ericsson Cable
  • 7.3.1. Ericsson Cable: General Company Information
  • 7.3.2. Ericsson Cable: Cable
  • 7.3.3. Ericsson Cable: References
• 7.4. Hitachi Cable
  • 7.4.1. Hitachi Cable: General Company Information
  • 7.4.2. Hitachi Cable: Cable
  • 7.4.3. Hitachi Cable: References
• 7.5. KDDI-SCS
  • 7.5.1. KDDI-SCS: General Company Information
  • 7.5.2. KDDI-SCS: References
• 7.6. Lumentis
  • 7.6.1. Lumentis: General Company Information
  • 7.6.2. Lumentis: Terminal Equipment
  • 7.6.3. Lumentis: References
• 7.7. Mitsubishi
  • 7.7.1. Mitsubishi: General Company Information
  • 7.7.2. Mitsubishi: Repeatered System
  • 7.7.3. Mitsubishi: Repeaters
  • 7.7.4. Mitsubishi: Terminal Equipment for Repeatered Systems
  • 7.7.5. Mitsubishi: Terminal Equipment for Repeaterless Systems
  • 7.7.6. Mitsubishi: Branching Unit
  • 7.7.7. Mitsubishi: References
• 7.8. Movaz
  • 7.8.1. Movaz: General Company Information
  • 7.8.2. Movaz: Terminal Equipment
  • 7.8.3. Movaz: References
• 7.9. Nexans
  • 7.9.1. Nexans: General Company Information
  • 7.9.2. Nexans: Cable
  • 7.9.3. Nexans: Joints
  • 7.9.4. Nexans: Branching Unit
  • 7.9.5. Nexans: Remote Amplifier Box
  • 7.9.6. Nexans: References
• 7.10. NSW (Corning)
  • 7.10.1. NSW (Corning): General Company Information
  • 7.10.2. NSW (Corning): Repeaters and BUs
  • 7.10.3. NSW (Corning): Cable
  • 7.10.4. NSW (Corning): References
• 7.11. OCC
  • 7.11.1. OCC: General Company Information
  • 7.11.2. OCC: Cable
  • 7.11.3. OCC: Repeaterless System
  • 7.11.4. OCC: References
• 7.12. Pirelli
  • 7.12.1. Pirelli: General Company Information
  • 7.12.2. Pirelli: Cables
  • 7.12.3. Pirelli: References
• 7.13. Red Sky Systems
  • 7.13.1. Red Sky Systems: General Company Information
  • 7.13.2. Red Sky Systems: System
  • 7.13.3. Red Sky Systems: Terminal
  • 7.13.4. Red Sky Systems: Repeater
  • 7.13.5. Red Sky Systems: Power Feed Equipment
  • 7.13.6. Red Sky Systems: References
• 7.14. Siemens
  • 7.14.1. Siemens: General Company Information
  • 7.14.2. Siemens: Terminal Equipment for Repeaterless Systems
  • 7.14.3. Siemens: References
• 7.15. Xtera
  • 7.15.1. Xtera: General Company Information
  • 7.15.2. Xtera: Terminal Equipment
  • 7.15.3. Xtera: References

8. Component Suppliers for Undersea Systems

• 8.1. Overview
• 8.2. Fiber
  • 8.2.1. Introduction
  • 8.2.2. OFS Optics
  • 8.2.3. Corning
  • 8.2.4. Sumitomo Electric
• 8.3. Pump Lasers
  • 8.3.1. Introduction
  • 8.3.2. JDS Uniphase
  • 8.3.3. Avanex
  • 8.3.4. NEC

9. Comparative Supplier Analysis

• 9.1. Qualitative Assessment
  • 9.1.1. Alcatel
  • 9.1.2. NSW (Corning)
  • 9.1.3. Fujitsu
  • 9.1.4. NEC
  • 9.1.5. Siemens
  • 9.1.6. Tyco Telecommunications
  • 9.1.7. Cable Manufacturers
  • 9.1.8. New Entrants
• 9.2. Quantitative Assessment
  • 9.2.1. Methodology
• 9.3. Analysis
  • 9.3.1. Repeatered Market
  • 9.3.2. Unrepeatered Market
• 9.4. Conclusions

10. Conclusions

• 10.1. Competition
• 10.2. Investment
• 10.3. Bandwidth Demand Growth
• 10.4. De-regulation of Telecom Markets
• 10.5. Overcapacity
• 10.6. Capital Availability
• 10.7. Cable Owners
• 10.8. Technological Trends
• 10.9. Upgrades & New Construction
• 10.10. Market Opportunity

List of Exhibit

Exhibit 2-2: Overall Report Methodology

Alcatel

• Exhibit 6-1: Alcatels TERA10 terminal architecture for one tributary
• Exhibit 6-2: Software elements that manage Alcatels TERA10 SLTE
• Exhibit 6-3: Terminal Architecture of the 1620
• Exhibit 6-4: Summary of Alcatels cable offering
• Exhibit 6-5: Alcatel OALC4 Cable
• Exhibit 6-6: Armor options for Alcatels OALC4 Cable
• Exhibit 6-7: Deployments of Alcatels OALC4 Cable
• Exhibit 6-8: Armor options for Alcatels OALC7 Cable
• Exhibit 6-9: Cross section of Alcatels URC1 Cable
• Exhibit 6-10: Armor options for Alcatels URC1 Cable
• Exhibit 6-11: System Deployments of Alcatels URC1 Cable
• Exhibit 6-12: Cross Section of Alcatels URC2 SA Cable
• Exhibit 6-13: Photographs Alcatels URC2 Cable
• Exhibit 6-14: Armor options for Alcatels URC2 Cable
• Exhibit 6-15: System Deployments of Alcatels URC2 Cable
• Exhibit 6-16: Armor options for Alcatels URC4 Cable
• Exhibit 6-17: Alcatel Repeater
• Exhibit 6-18: Block Diagram of Alcatel Repeater
• Exhibit 6-19: Alcatel Pumping Module
• Exhibit 6-20: Photograph of Alcatel Branching Unit
• Exhibit 6-21: Outline of Alcatel Branching Unit
• Exhibit 6-22: Branching Unit Power Configurations
• Exhibit 6-23: Alcatel 10 kV PFE

Draka

• Exhibit 7-2: Draka NK Cables Underwater Cable
• Exhibit 7-3: Summary of NKs cable offering
• Exhibit 7-4: Historical Draka NK supply contracts

Ericsson

• Exhibit 7-5: Ericsson System Participation
• Exhibit 7-6: Ericsson 4 fiber ribbon core
• Exhibit 7-7: Ericsson 8 fiber ribbon core
• Exhibit 7-8: Summary of Ericssons cable offering

Fujitsu

• Exhibit 6-24: Recent Fujitsu System Deployments
• Exhibit 6-25: New projects for Fujitsu
• Exhibit 6-26: Fujitsu Repeater

Mitsubishi

• Exhibit 7-10: Mitsubishi System Participation
• Exhibit 7-11: Mitsubishi System Repeatered System
• Exhibit 7-12: Mitsubishi Repeater
• Exhibit 7-13: Mitsubishi Repeater Block Diagram
• Exhibit 7-14: Mitsubishi 980 ƒÊm pump laser
• Exhibit 7-15: Mitsubishi Repeatered Terminal
• Exhibit 7-16: Mitsubishi Repeaterless Terminal
• Exhibit 7-17: Mitsubishi Branching Unit

NEC

• Exhibit 6-27: NECs Supply History Since 2000
• Exhibit 6-28: NECs System Architecture
• Exhibit 6-29: NECs Terminals
• Exhibit 6-30: NECs T320DS Terminal Equipment
• Exhibit 6-31: NECs R320DS Repeater
• Exhibit 6-32: Typical repeater performance
• Exhibit 6-33: NECs supervisory system
• Exhibit 6-34: Repeated Repeater/span Measurements on a 75 repeater system
• Exhibit 6-35: COTDR result on a portion of a 4100 km system
• Exhibit 6-36: The NEC Branching Unit
• Exhibit 6-37: The NS320 Power Feed Equipment by NEC

Nexans

• Exhibit 7-19: Summary of Nexans past and present work
• Exhibit 7-20: Nexans URC1 Cable Family
• Exhibit 7-21: Armor options for Nexans URC1 Cable
• Exhibit 7-22: Outline of Nexans Branching Unit
• Exhibit 7-23: Nexans Branching Unit

NSW (Corning)

• Exhibit 7-24: Recent NSW System Deployments
• Exhibit 7-25: NSWs 3-port BU
• Exhibit 7-26: NSWs Cable Family
• Exhibit 7-27: NSWs LW cable design
• Exhibit 7-28: NSWs SA cable design
• Exhibit 7-29: NSWs DA cable design
• Exhibit 7-30: Summary of NSWs MINISUB? cable offering

OCC

• Exhibit 7-31: Photograph of the present Kita-Kyushu factory
• Exhibit 7-32: OCCs recent supply history
• Exhibit 7-33: Recent supply contracts for OCC
• Exhibit 7-34: OCC SC-300 LW cable cross section
• Exhibit 7-35: OCCs SC-300 cable
• Exhibit 7-36: OCCs SC-400 cable
• Exhibit 7-37: Slotted core cable used in OCCs HF cable

Pirelli

• Exhibit 7-38: Supply Contracts for Pirelli since 2000
• Exhibit 7-39: Pirelli Repeaterless Cables
• Exhibit 7-40: Pirelli Armored Cable
• Exhibit 7-41: Pirellis repeaterless Cable Cross Section Profiles
• Exhibit 7-42: Pirellis repeaterless cable data
• Exhibit 7-43: Pirelli Submarine Cable Cross Section Profiles
• Exhibit 7-44: Pirellis repeatered cable: unarmored and armored
• Exhibit 7-45: Pirellis repeatered cable data

Red Sky Systems

• Exhibit 7-46: Diagram of Red Sky system showing the OLI interface to the terrestrial terminal
• Exhibit 7-47: Block diagram of Red Sky Optical Line Interface
• Exhibit 7-48: Repeaterless/Repeatered Hybrid Architecture
• Exhibit 7-49: Leap Frogging

Siemens

• Exhibit 7-50: ARCOS System Architecture
• Exhibit 7-51: Summary of Siemens Projects (1988-Present)
• Exhibit 7-52: Optical add/drop architecture

Tyco

• Exhibit 6-38: Recent Tyco System Deployments
• Exhibit 6-39: Tyco Gen 2 Terminal Architecture
• Exhibit 6-40: Block Diagram of Tycos Gen 2 terminal
• Exhibit 6-41: Tycos GEN2 Optical Modulation
• Exhibit 6-42: Tycos Demultiplexing Architecture
• Exhibit 6-43: Summary of Tycos cable offering
• Exhibit 6-44: Armoring options for Tycos SL21 cable
• Exhibit 6-45: Armoring options for Tycos SL17 cable
• Exhibit 6-46: Armoring options for Tycos Repeaterless SL12 cable
• Exhibit 6-47: Tycos Amplifier Pair Architecture
• Exhibit 6-48: Tyco branching unit on shipping pallet
• Exhibit 6-49: Tycos Third Generation Power Feed Equipment

Xtera

• Exhibit 7-53: Xteras Unrepeatered architecture
• Exhibit 7-54: Xteras Nu-Wave ES/LS configuration (left) and XLS configuration (right)

Other Suppliers

• Exhibit 7-1: Azeas NX-10 Terminal
• Exhibit 8-2: Summary of Corning submarine fibers
• Exhibit 7-16: Lumentis Chassis Options
• Exhibit 7-25: The Movaz RayExpress used in the Hawaiian Island Fiber Network
• Exhibit 8-1: Summary of OFS submarine fibers
• Exhibit 8-3: Summary of Sumitomo submarine fibers

Technology

• Exhibit 5-1: Simplified Block Diagram of a Cable System
• Exhibit 5-2: Coastal Architectures: festoon (left) and trunk and branch (right)
• Exhibit 5-3: Ring architecture
• Exhibit 5-4: Branched Network
• Exhibit 5-5: Fiber containment structures
• Exhibit 5-6: Cable strength structures
• Exhibit 5-7: Repeater housing for up to 8 pairs of optical amplifiers
• Exhibit 5-8: Repeater Powering
• Exhibit 5-9: Optical Amplification
• Exhibit 5-10: A Basic Optical Amplifier
• Exhibit 5-11: Block diagram of a repeater
• Exhibit 5-12: Supervisory architecture showing loopback and COTDR paths
• Exhibit 5-13: SLTE in a terminal station
• Exhibit 5-14: Repeaterless architectures
• Exhibit 5-15: Power switching in a branching unit
• Exhibit 5-16: Fiber switching in a branching unit
• Exhibit 5-17: The TMN organization of network functionality

Competition

• Exhibit 1-6: Repeatered Submarine Fiber Optic Cable System Supplier Worldwide Market Shares 2000-2005, 2003-4, & 2005+
• Exhibit 1-7: Unrepeatered Submarine Fiber Optic Cable System Supplier Worldwide Market Shares 2000-2005, 2003-4, & 2005+
• Exhibit 2-1: Equipment Suppliers
• Exhibit 9-1: Equipment Suppliers
• Exhibit 9-2: Comparison of Terminal Sizes by Supplier
• Exhibit 9-3: Undersea Cable Manufacturers
• Exhibit 9-4: Repeatered Submarine Fiber Optic Cable System Supplier Worldwide Market Shares 2000-2005, 2003-4, & 2005+
• Exhibit 9-5: Repeatered Submarine Fiber Optic Cable Projects Under Construction or Planned 2005+
• Exhibit 9-6: Unrepeatered Submarine Fiber Optic Cable System Supplier Worldwide Market Shares 2000-2005, 2003-4, & 2005+
• Exhibit 9-7: Unrepeatered Submarine Fiber Optic Cable Projects under Construction or Planned 2005+

Market Drivers

• Exhibit 1-1: Worldwide Submarine Fiber Optic Cable Systems Investment - Repeatered & Unrepeatered 1986-2006+
• Exhibit 1-2: Forecast International Submarine Fiber Optic Bandwidth Demand Growth 2005-13
• Exhibit 1-3: Estimated Intra-Regional Submarine Fiber Optic Cable System Utilization Rates in 2005
• Exhibit 1-4: Forecast Worldwide Intra-Regional Submarine Fiber Optic Cable Capacity Supply Demand Balances 2005-13
• Exhibit 1-5: Forecast Worldwide Intercontinental Submarine Fiber Optic Cable Capacity Supply Demand Balances 2005-13
• Exhibit 3-1: Worldwide Submarine Fiber Optic Cable Systems Investment - Repeatered & Unrepeatered 1986-2006+
• Exhibit 3-2: Forecast Worldwide Broadband User Population 2005-13
• Exhibit 3-3: Forecast International Submarine Fiber Optic Bandwidth Demand Growth 2005-13
• Exhibit 3-4: Forecast Average Bandwidth per User & Access Speeds by Region 2005-13
• Exhibit 3-5: Estimated Intra-Regional Submarine Fiber Optic Cable System Utilization Rates in 2005
• Exhibit 3-6: Estimated Intercontinental Submarine Fiber Optic Cable System Utilization Rates in 2005
• Exhibit 3-7: Major International Submarine Fiber Optic Systems Upgrades 2003-5

Forecasts

• Exhibit 1-8: Planned Submarine Fiber Optic Cable System Supply Contracts Yet To Be Awarded
• Exhibit 4-1: Forecast Worldwide Demand for Intra-Regional Submarine Fiber Optic Cable Capacity 2005-13
• Exhibit 4-2: Forecast Worldwide Demand for Intercontinental Submarine Fiber Optic Cable Capacity 2005-13
• Exhibit 4-3: Forecast Worldwide Intra-Regional Submarine Fiber Optic Cable Capacity Supply Demand Balances 2005-13
• Exhibit 4-4: Forecast Worldwide Intercontinental Submarine Fiber Optic Cable Capacity Supply Demand Balances 2005-13
• Exhibit 4-5: Scenario for New Submarine Fiber Optic Systems Construction by Region 2005-13

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