Arctic Fibre Progress Report to NCIS-WG Oct 31, 2012

7/31/2019 Arctic Fibre Progress Report to NCIS-WG Oct 31, 2012

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Progress Report to NCIS-WG

October 30, 2012


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Minor Route Amendments > Major Impact

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Backbone Route Changes Add Value

Hudsons Bay East Shore route facilitates landings in Nunavik

Hudsons Bay East Shore route facilitates eventual mesh ring with Kivalliq spur at

Arviat

Hudsons Bay East Shore route facilitates eventual fibre connection to Sanikiluaq at

cost ~$8 million

Hudsons Bay East Shore route extends Eeyou Network reach to Whapmagoostuui

and Kuujjuarapik Second Canadian international gateway created from Montreal hub to Europe

Revised routing reduces subsea network build by ~ 580 km - capex reduced

Tokyo-New York City distance lowered by ~2,300 km

Arctic Fibre latency < 137 milliseconds (RTD) fastest route between Tokyo & NYC

Greater international traffic creates domestic economies of scale

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Over the Top Telecommunications

Estimated Arctic Fibre Latency (Milliseconds-RTD)@100G

Boston NYC Montreal Toronto Chicago London Frankfurt

Shanghai 178 170 162 171 179 192 201

Seoul 163 155 147 154 164 172 181

Tokyo 145 137 129 136 146 159 168

Hong Kong 195 187 179 186 197 209 218

Least Latent Alternative Carrier (Advertised and Inservice)

Boston NYC Montreal Toronto Chicago London Frankfurt

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Shanghai 181 174 200 171 161 212 199Seoul 166 159 185 156 146 202 200

Tokyo 148 141 167 138 128 189 187

Hong Kong 197 192 197 188 176 215 224

Arctic Fibre Advantage (Disadvantage)

Boston NYC Montreal Toronto Chicago London FrankfurtShanghai 3 4 38 0 -18 20 -2

Seoul 3 4 38 2 -18 30 19

Tokyo 3 4 38 2 -18 30 19

Hong Kong 2 5 18 2 -21 6 6


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Progress Regulatory and Permitting

Formal application for landing licence filed with Industry Canada on October 2, 2012

Application amended this week to enable Hudsons Bay landing alternatives near Chisasibi

and Moosonee Permit Coordination underway with CanNor, Nunavut Impact Review Board, Industry Canada

WFN Strategies completed Desk Top Study on original route Tokyo-London in July and

amendments this week ice issues manageable

Landing permit process in Japan and United Kingdom underway

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Progress Technical Network Backbone

Decision made to utilize 100G technology over four fibre pairs = 32 Terabits system capacity

Formal request for turnkey proposal issued August 2012 to TE Subcom and Alcatel/Lucent

Revised RFP amendments will delay submissions until end of November

Discussions underway with various entities on terrestrial fibre builds, swaps and dark fibre

leases in Ontario and Quebec

Marine surveys will commence in 2013Q2 and continue through October 2013

erres r a c v wor s o e un er a en n pr or o mar ne opera ons n

Nearshore landing alternatives identified in DTS

Partnering with existing telcos in most Arctic communities for collocation

Cambridge Bay CLS alternatives being evaluated

Arctic Fibre will sponsor Inuktitut-language internet portal in Iqaluit

RFS date of November 2014

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Technical Microwave Extensions

Arctic Fibre collaborated with WireIE to engineer microwave extensions from backbone CLS

Each community will receive minimum 50 Mbps with low-cost upgrades available to 1Gbps

Hybrid fibre optic microwave network reaches ~96.5% of Nunavut population at capital costof $9 million (inc. power) over and above Nunavut fibre spur cost of $111 million.

Communities served by microwave:

Kimmurut, Baker Lake, Whale Cove, Kugarruk, Repulse Bay, Arctic Bay

es ua sa e e- epen en commun es:

Resolute Bay, Grise Fiord, Sanikiluaq (combined population 1,233)

Sanikiluaq (population 850) could be fibred off Hudsons Bay backbone for ~$8 million

Fibre-microwave outlay of $128 million leaves only 343 Nunavut residents (1%) on satellite

Virtually unlimited (100Gbps) fibre capacity inc. 1 Gbps microwave links for $128 million

Satellite with limited 3Gbps capacity costs $300 million and has shorter lifespan

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8/13

Progress - Marketing

Domestic Open Season Capacity Nomination Process concluded successfully with seven

entities participating

Three other entities still in negotiations based upon specific technical requirements Tuktoyaktuk spur dropped due to lack of demand > potential terrestrial fibre

Assurances received from Nunavut Government on migration to fibre as satellite contracts

expire in 2015-16 working toward MOU

secondary spurs and microwave extensions based upon revised routing. Immediate requirement for Federal/provincial/territorial upfront commitment by year end

on 11 backbone underwater branching units for secondary spurs retroactive installation

impossible

Immediate requirement for other NCIS-WG connection requirements to be identified

Canadian carriers enthusiastic about prospect of second network connection to Europe American carriers and HFTNs enthusiastic about Asia-NYC low latency improvement

International carrier negotiations concluding at PTC in January 2013

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9/13

Progress - Financial

Financial models being revised to reflect route changes > increased demand > lower costs

Strong investor interest from financial institutions and foreign carriers ownership likely a

hybrid carrier consortium + institutional investor model

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10/13

Progress Corporate Resources

Arctic Fibre has recently hired North American carrier sales staff

Potential marketing partnership with major carrier collocation entity

Arctic Fibre has engaged former Iqaluit Mayor Madeleine Redfern to assist with Nunavutpermitting issues

Search for in-house legal counsel underway

Bennett Jones acts as regulatory counsel in Ottawa

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Required Steps NCIS-WG

1. Ensure Shared Services Canada is fully aware of your Departments short-term and longer-

term bandwidth requirements having taken price-elasticity into effect

2. Ensure Shared Services Canada and Arctic Fibre are aware of your High Arctic requirementswhich might require additional underwater branching units

3. Ensure Shared Services Canada and Arctic Fibre are aware of subsea sensor requirements/

locations on an immediate basis for engineering purposes

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Cable Ships in the Arctic

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Arctic Fibre Progress Report to NCIS-WG Oct 31, 2012

Documents

Transcript of Arctic Fibre Progress Report to NCIS-WG Oct 31, 2012