20 November 2007

Undersea Cable to Serve South America

Since the topic of undersea cables came up in class recently, you might find this item briefly describing a cable project between Guyana and Trinidad of interest. I think what is most useful are the cost and schedule details. Quoting the article:
Atlantic Tele-Network Inc., based in the U.S. Virgin Islands and Salem, Mass., expects to invest $35 million in the new cable, which will provide improved service to Guyana, Suriname and Brazil, the company said. It is expected to be completed in 2009. The region is currently served by an undersea cable between Florida and French Guiana, but many people in the region complain of slow Internet service and difficulty making international calls.

The distance covered by the cable is approximately 500km, so this project is estimated to cost US$70,000/km. How does this compare to other published cable costs?

1 comment:

Anonymous said...

They overpaid by a factor of about two for this cable. They don't seem to understand market prices for this type of underseas cable. Not sure how they economically justified this expenditure!