New TransPacific Cable Projects:
Rod.Beck at hiberniaatlantic.com
Sat Sep 22 11:33:48 UTC 2007
On Sep 22, 2007, at 5:26 AM, Rod Beck wrote:
> It is not obvious to me that there is a Pacific cable capacity
> glut. For example, I sold a DS3 from LA to Hong Kong for $6K MRC
> whereas the last time a wholesale TransAtlantic DS3 rivaled that
> figure was 2001.
Not to mention that the Taiwan straits earthquake showed a clear lack
of physical diversity on a number of important Pacific routes, which I know some
companies are laying fiber to address.
Human beings systematically underestimate certain risks and exaggerate others.
The defenders of the Pacific cables will point out that the cables were actually quite well spaced and that the only reason so many cables were destroyed was that the earthquake caused an undersea landslipe that rolled over hundreds of kilometers.
However, the Taiwan strait is an area of constant seismic activity and that risk was ignored largely because the Big One occurs infrequently enough not to matter to the decision makers.
On the other side of the coin, the average American is more likely to die in a car accident than a terrorist attack. Yet the US devotes more resources to preventing terrorist attaacks than to preventing car accidents or reducing its extreme high infant mortality rate (twice the level of developed countries like Canada or France).
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