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SEACOM recently announced that they are on schedule to bring a new undersea cable to South Africa by June 2009.
http://www.seacom.mu/news/news_details.asp?iID=53
This is major news for a few reasons.
1. Any new cable system to points in Africa is a big step in the right direction no matter what - the current fiber cable / transport capability to that part of the world is no where near that of other areas.
2. It builds the foundation for a future global Meet -Me point in South Africa which will link not only East Africa with West Africa, but also provide the critical mass and justification for other such underdsea projects to link South America with Asia and the Middle East via South Africa. This is incredibly important given the current reliance on New York and London for this route. A true ring around the world is a good thing.
3. The driving force behind the SEACOM build is rooted in the need for fiber to transport HD video for the 2010 FIFA World Cup. Without this fiber there would have been no practical way for the broadcasters to access the HD feeds coming from South Africa. The days of satellite and SD are ending and will be over by 2010 for major live sporting events. This announcement and entire project underscore that reality.
There is much that is not known about what would have become of the FIFA World Cup if the SEACOM cable was not being built. Would the games have been brought to a place where there is ample fiber to carry the HD? A political mess for sure, but apparently that will be averted. Obviously this is a substantial revenue opportunity for the fiber-based transport providers. One thing is certain - it is an interesting time in networking history when we can directly link a new undersea cable build to South Africa with the specific intention of meeting video broadcasters broadband requirements. Supply is built to meet demand and the business case is made that simple.
Recently I was introduced to a new website with a somewhat old idea. www.buysellbandwidth.com seeks to reduce and, or eliminate the disparity and inefficiencies in sourcing available capacity on different networks through a "members-only" access view to what is in demand and also available for global networks. The thought is to bring the information forward to the real principals in order to facilitate a meaningful solution. A worthwhile and even noble cause indeed.
This has of couse been attempted before in various fashions dating back to the "bandwidth trading" days and beyond. We probably all remember ENRON Broadband, Reliance (not the Indian company), Dynegy Connect, El Paso Global Networks and many others. Most of the attempts at this were made as pure broker models, but some realized that as a broker in the middle you typically had no control and in the end got burned. In other words, if your business model relied on revenues from commissions you would be chasing your own tail in to the ground. There was (and is) no standard interconnection platform for bandwidth - unlike natural gas, oil and power.
Those that discovered this reality tried to actually own the network facilities in the middle so that they could control the process, but this lead them to the new reality that they had to actually run a network. Something most of them had no knowledge of, or experience with. The two shining examples of actual telecom-based attempts at this that come to mind are Universal Access and Last Mile Connections. I experienced all of this first-hand as most of these companies were my customers in 60 Hudson Street, NYC at one point. Interesting times.
There is something about buysellbandwidth.com that is differnet though - the Founder, Neil Tagare, has real experience with network provisioning issues. When someone looks at an opportunity from the perspective of solving a problem there is hope that it will succeed.
From his bio and other sources I gathered the following:
- He was involved with FLAG which, from a construction and operations perspective, worked and it was global
- One of the motivations for this site was the middle east undersea cable cuts of this year, something that intentionally doesn't get any coverage, but exposes THE major weakness/vulnerability in the civilized world - reliance on networks
- He mentions diversity as being essential and that it can be achieved (with what's in the ground now) by having visibility to others that possess routes/network/assets. More information and knowledge is a good thing
- He is actually using this platform to "pre-sell" other projects to his members. A good way to determine where the demand is, or better yet create demand for where assets currently are not, but should be.
These are all great points and in his favor. Also it that matter that the business is being based on trust. It is good to be upfont about that. Establishing it with everyone and then getting it back in return is the trick.
All in all these types of businesses have failed in the past because they always boil down to relationships, trust, setting the right expectations and the underlying revenue model itself. All you need is a few deals to go bad, or someone to represent they have something that they don't, or can't deliver and then trust in the system is broken. No one wants to waste their time so they usually stick to doing deals with their friends and people they know. Those are usually safe, small circles. This is not to say that buysellbandwidth.com won't work, but it needs constant daily attention.
Also, if buysellbandwidth.com is getting involved in deals from a project development standpoint it may become perceived as being non-neutral and steering things the way they want them to go for their own gain. (Since buysellbandwidth doesn't own a "neutral" interconnection facility they can't inherently benefit from everyone transacting in their space - although Neil seems to know a few things about the benefits of Carrier Neutral Landing Stations). This can also lead to another fundemental issue that plagues the comms business - provisioning. Leaving the carriers, etc to actually sort how they are going to get connected has proven to be quite challenging. Layering the buysellbandwidth.com concept on top of known, established physical layer interconnection facilities around the world would probably do much to help drive the greater good and benefit all parties involved.
Check it out www.buysellbandwidth.com - what do you think?
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