2,300km multi-terabit system will offer new low-latency connection across Tasman Sea and significantly improve capacity and resilience of New Zealand’s international telecomm services
Paris, December 18, 2014
Alcatel-Lucent (Euronext Paris and NYSE: ALU) has signed a contract with a consortium composed of Spark New Zealand, Telstra and Vodafone to deploy the Tasman Global Access (TGA) undersea cable system that will connect New Zealand to Australia on a direct 2,300 km link.
Designed with a capacity of at least 20 Terabits per second (Tbit/s), the new TGA system will offer low-latency connectivity across the Tasman Sea, between Raglan, in New Zealand, and Narrabeen, in Australia. The system will provide an alternative route for trans-Tasman traffic, significantly improving New Zealand's international connectivity, as well as strengthening links into fast-growing Asian markets.
Simon Moutter, Managing Director of Spark New Zealand and Russell Stanners, CEO of Vodafone New Zealand, said: “TGA will further strengthen reliable ultra-broadband connectivity in Australasia for a growing range of applications, including cloud computing, data centre applications, content delivery, government and enterprise services. Additionally, it will enable a significant improvement in the robustness of New Zealand’s international connectivity with the rest of the world, by delivering this high capacity alternative route.”
Philippe Dumont, President of Alcatel-Lucent Submarine Networks said: “This project confirms the continued growth of connectivity needs in Australasia and in the Asia region overall. We are pleased to provide our 100G coherent technology to help the consortium build the Tasman Global Access cable that will significantly improve the bandwidth and reliability for traffic to and from New Zealand.”
Next Contract for ASN - Alcatel Submarine Network. The upcoming IPO will be outstanding.
18 December, 2014
A/NZ telcos to build $86.3 million trans-Tasman submarine cable
Alcatel-Lucent tapped to lay cable for 20Tbps undersea system
A 2300 kilometre undersea cable system connecting Australia and New Zealand across the Tasman Sea will commence construction in early 2015.
A consortium of Telstra, Vodafone and Spark New Zealand Cables (formerly Telecom NZ) will invest about $86.3 million in the Tasman Global Access (TGA) system. The group has signed a contract with Alcatel-Lucent to lay the submarine cable.
The TGA cable is expected to be finished by mid-2016, the consortium said.
The undersea cable utilises two fibre pairs with 20 Tbps capacity and will connect Narrabeen, Australia to Raglan, NZ. It provides an alternative route for trans-Tasman traffic to the existing Southern Cross and Tasman 2 cables, enhancing New Zealand’s international connectivity and strengthening links into Asia, Alcatel-Lucent said. The building of a new cable responds to growth in international traffic. Spark and Vodafone’s trans-Tasman Internet traffic has grown from 10 per cent of total international traffic in 2000 to 40 per cent today, the consortium said. New Zealand’s international capacity requirements are increasing at a rate of 60 percent year-on-year, it said.
“We are seeing increased data content being provided from Australia-based servers by global companies and being accessed by New Zealand internet users,” Spark managing director, Sim Moutter and Vodafone NZ CEO Russell Stanners said in a joint statement.
“An additional cable connection with Australia will strengthen the business case for international data servers to be located in New Zealand, and improve access for Australian and other international businesses to New Zealand.”
Dec 16 (Reuters) - Mining equipment maker Joy Global Inc , which gets more than 60 percent of its revenue from coal miners, reported a 4 percent fall in quarterly revenue as customers cut production.
Joy Global Inc. more than doubled its earnings in the fourth quarter, but the struggling mining-equipment maker warned that 2015 would be another challenging year amid an unfavorable pricing environment and falling industry investment in new equipment.
Numbers for both earnings and sales beat Wall Street's expectations. However, after several quarters of growth in equipment bookings, fourth-quarter bookings fell 27% to $783 million from a year ago, partly due to foreign exchange rates.
Milwaukee-based Joy, the sector's leading supply of heavy equipment, has been hit by low iron-ore and thermal coal prices, though results in recent quarters had shown improvement and signs of stabilization.
Commodity prices have declined, as an oversupply of materials reduced the number of projects approved, the company said. Joy Global said that despite improving global economic conditions that should drive demand, market dynamics are such that prices for most major commodities remain depressed, with marginal upside potential over the near-term.
SunCoke said on Monday it will cut 175 positions, which is about 13% of its workforce, as it looks to reduce coal production by more than 50% a year because of a challenging coal price environment. The company expects to mine about 500,000 tons of mid-vol coal a year in the short term while it pursues a sale or other alternative, such as retaining contractors to mine on its behalf. SunCoke anticipates taking a one-time cash charge of $25 million to $35 million as it downsizes its coal operations.
Oddo Securities has confirmed its recommendation to buy and its price target of 3.80 euros on Alcatel-Lucent, Ciena's 2015 outlook is encouraging. The estimated operating profit in 2015 of the consulting firm remains 20% above the consensus. He said the group should be able in the coming quarters (in the fourth) prove positive inflection on two key segments of the group: IP routing (return to growth to over 10% in 2015, that is, ie 15%) and optics (10% growth in 2015), but also the structural improvement of margins (8.5% in 2015).
Kepler Cheuvreux Friday reiterated its recommendation to "buy" and its price target of #$%$ 4.40 on Alcatel-Lucent . The broker makes a comparative reading rather positive quarterly results - yet subdued - published Thursday by the American specialist Ciena optical networks.
If it has suffered from the weakness of the US market and the sharp drop in investment from AT & T, Kepler Cheuvreux emphasizes that Ciena has delivered encouraging prospects for 2015 with better dynamic activity in the coming quarters.
The broker sees it as a positive indication for the IP transport activity of Alcatel-Lucent . Thus it remains "comfortable" with its growth forecasts IP transport activity of the French equipment in the fourth quarter (+ 2% like for like) and 2015 (+ 10%) while the group "wins market share in terrestrial optics with good momentum in the 100G. "
CAPEX Concerns are OVERBLOWN!!!!!
Telecom equipment stocks rally after Verizon CFO comments on wireless CapEx
Telecom equipment stocks, which opened lower, rallied after Verizon (VZ) CFO Fran Shammo said he sees wireless CapEx continuing to trend upward. Shammo, speaking at the UBS 42nd Annual Global Media And Communications Conference, said, "The day we start to cut wireless CapEx is the day we start to wonder where the future of this industry is going." Ciena (CIEN), JDSU (JDSU), and Finisar (FNSR) all reversed earlier losses. PRICE ACTION: In afternoon trading, Ciena is up 1.5%, JDS Uniphase is up 3.8%, and Finisar is up 4.5%. Verizon, which was downgraded this morning to Neutral from Buy by RW Baird, is trading down almost 5%.
UBS raised its price target on the telecoms equipment maker Alcatel-Lucent from 3.7 to 4 euros, while confirming the opinion "Purchase". The theme of mergers and acquisitions should remain featured next year, said the broker in a sector note. The analyst has identified several areas of activity that could move in 2015, including mapping, telematics, test & measurement, or optical networks. According to UBS, the mobile infrastructure market could be a consolidation, probably in 2016, "with a potential upside for Alcatel in a valuation range between 3.6 and 5.8 euros per share."
CIEN Numbers before Market open, will show if AT&T and Peers has slow down Capex....
Very important for ALU in shortterm!
Small cell rollouts lead to lamp post grab
By Mary Lennighan, Total Telecom
Friday 05 December 2014
Backhaul specialist CCS predicts ramp-up in small cell rollouts in 2015.
Mobile operators will start rolling out small cells in bigger volumes from 2015 and that means street furniture is becoming hot property.
Helen Stalker, marketing director at small cell microwave backhaul equipment specialist Cambridge Communication Systems (CCS), likens the state of play in the small cells market to the period a decade or so ago when mobile network operators were racing one another to deploy base stations.
"It's kind of a lamp post grab," she said at the Total Telecom Festival this week.
In fact, "a shortage of lamp posts" has held the market back more than a shortage of spectrum, Stalker said.
CCS develops backhaul equipment that operates in licensed spectrum in the 28 GHz band, and it is also considering using the 26 GHz, 32 GHz, 38 GHz and 42 GHz bands, Stalker said. "In the future we could look at other bands," she said.
The firm developed its kit for 3G networks, but it has been deployed by 4G operators, such as China Mobile, which announced in February that it was using CCS's small cells kit as part of its TD-LTE network rollout.
"Asia is very much leading the way in terms of small cell deployment," Stalker said.
However, she predicts a ramp-up in small cells activity in 2015.
"We're not at a volume stage yet...Next year is when you're going to see significant deployments," she said.
Tue Dec 9, 2014 12:00pm GMT
REUTERS- Worst may be over for iron ore, coal, but supply is key: Russell
LAUNCESTON, Australia, Dec 9 (Reuters) - It's an observable fact that steep falls in commodity prices are often a precursor to a rally, and recently some industry executives have said this is likely next year for iron ore and coal.
GREEN SHOOTS FOR COAL
Rio Tinto head of coal Harry Kenyon-Slaney is seeing some signs of improvement in the coal market, on the back of supply leaving the market.
In an interview last week with Australia's Fairfax media, Kenyon-Slaney said the tough times are going to last for a while yet, but the market is stabilising and the "cycle will turn."
Rio Tinto pointed to the consensus forecast for Newcastle coal prices to rise to an average $76 a tonne next year, in line with this year's average price, before gaining to $81 in 2016.
For this forecast to be achieved, it will take ongoing rationalisation of supply, as seaborne demand is unlikely to rise strongly, notwithstanding the shortage of coal in number two importer India.
The risks here are that the depreciation of the Australian dollar and the Indonesian rupiah, coupled with lower costs from falling fuel prices, will actually help keep some high-cost production going, thereby delaying a price rally.
There are some reasons to be optimistic that the worst is over for coal and iron ore, but much will depend on whether as much high-cost supply leaves the market as the major miners expect.
Mitsui & Co. (8031) said it agreed to pay $763 million for stakes in a Mozambique coal project owned by Vale SA (VALE5), signaling confidence from Japan’s second-largest trading house in a recovery in coking coal prices.
Alpha Chairman and CEO Kevin Crutchfield credited the efforts that the mine operators and their workers undertook in reducing their costs to compensate for weak coal prices. Crutchfield said, "Many of these sites have made significant progress in improving efficiencies and finding cost savings. They were proactive in presenting ideas that helped move the mines toward enhanced contributions to earnings before interest, taxes, depreciation and amortization (EBITDA) while continuing to operate safely and in an environmentally sound way."
Alpha President Paul Vining said that in addition to reducing the cost of extracting the coal, sales opportunities have improved in some locations. Vining said, "Though demand for Central Appalachian thermal coal has declined, there is residual demand for the coal these mines produce and we've booked enough sales to allow the mines to continue operating."
A ten Times bigger Project is on the Horizon:
Once Finland’s link to Germany is completed, the government hopes to speed up Asia’s cyber connection with Europe via a planned cable through Arctic waters and Russia. The project is the subject of preliminary talks by several governments and companies, and may cost about 800 million euros, according to Eero Heliovaara, head of the department that oversees Finland’s government-owned companies.
“First we want to attract data centers,” Heliovaara said in an interview in Helsinki. “They will see the link to Asia as important. Large Chinese companies are very interested -- it all depends on how the financing can be arranged.”
OK, let put things together. Piece of CEO Combes Shift Plan is to sell Products outside the Telco Space. Only 8% of ALU Revenue is doing Business with Large Enterprises.
So what does CEO Combes do?
Building two Partnerships with the largest Companys, selling Products to Large Enterprises:
1. Hewlett Packard (Revenues 2013: $111B)
2. Accenture (Revenues 2013: $33B)
Genius. ALU Products will be integrated in those Companies. So you have a Factor of nearly 10, in Terms of possible Revenue.
This will be a large Growth Contributor in 2015 and Beyond....
Finland Lays Alcatel Underwater Cable to Attract Data Centers
Finland is starting construction of a submarine data cable to Germany to attract more data centers and improve security by diversifying connections.
The system will be supplied by Alcatel-Lucent SA and works are set to be completed in early 2016, according to an e-mailed statement by state-owned Cinia Group Oy. Cinia, which operates the cable, will spend about 100 million euros ($123 million) to expand data networks. Most of the funds will be used on the underwater project.
“Building international, fast and secure connections is a prerequisite for digital industry investments in Finland,” Sirpa Paatero, minister in charge of state holdings, said in a statement. “The project enables the creation of thousands of new jobs and increases Finland’s attractiveness and competitiveness.”
Companies such as Google Inc. (GOOGL) and Facebook Inc. (FB) are looking toward Nordic countries for data centers, attracted by a stable power grid as well as the chilly climate, which helps keep equipment cooling costs down. The Nordic nation this year lowered the energy-tax rate for companies requiring large-scale data storage after identifying them as a key target for foreign direct investment.
The cable between Helsinki and the Rostock-Ribnitz area in northern Germany will also boost security by diversifying traffic as most data from Finland passes through Sweden, with smaller connections to Norway, Estonia and Russia. Swedish authorities are allowed to intercept and monitor communications through the country, a power Finnish authorities lack.