Alcatel takes majority in CTC, a specialist in submarine cable installation
Alcatel reinforces its marine capacity in order to offer better marine services
Paris, 20 July 2000 - Alcatel, the world leader in optical networking, has taken a majority share
holding in CTC marine project, a British specialist contractor in the field of submarine cable installation.
With 74% of the share capital, Alcatel takes a further step in anticipating the increasing needs of
telecommunications services providers. This represents another significant move by Alcatel in the
development of its strategy to forge lasting strategic partnerships with vessel and cable installation
experts.
Alcatel and CTC have a successful history of co-operation on demanding submarine cable projects
with CTC, having laid and buried cables for a number of systems on behalf of Alcatel. These include
burial operations on the SMW3 system, the largest inter-regional cable system built to date, linking
South East Asia with Europe; and Southern Cross, a high capacity South Pacific system connecting
Australia, New Zealand, Fiji and Hawaii with the US west coast.
Driven by the soaring demand for transmission capacity for internet-based services, Alcatel plans to
lay more than 100,000 cable-kilometers per year in all the world's oceans over the forthcoming years
to complete its customers' projects. This new alliance with CTC, which follows the recent
announcement of a joint venture with Louis Dreyfus Armateurs for vessel ownership and ship and
cable installation management, will help Alcatel to secure for its clients the delivery of their networks
on time, everywhere, thanks to state of the art cable vessels, the best crews and highly specialized
cable installation machinery. Alcatel believes that these capabilities are key to offering networks that
meet the demanding service delivery needs of the new generation of operators. Such an alliance will
strengthen Alcatel's ability to provide its customers the best level of security for their networks.
In October, CTC will introduce its first dedicated cable installation vessel, placed on a one year
contract to Alcatel. In addition to its range of installation and burial services, CTC has a comprehensive
geotechnical capability which includes route survey, burial assessment, modeling for rock cutting and
trenching performance prediction.
"Direct involvement in a company such as CTC proves Alcatel's willingness to better control its
resources in marine activities in order to enhance its ability to deliver class-leading cable protection
and secure program implementation to its submarine system customers," said Christian Reinaudo,
President of Alcatel's Optics Group. "We have chosen a partner we have known for a long time,
which has proved its skill and expertise in the fields of seafloor engineering and cable installation. This
strategic partnership ensures that our customers benefit from a full turnkey service, including cable
installation in all its dimensions."
For CTC the shareholding agreement with Alcatel provides the investment and technical environment to
support the technology development and expansion programs planned for the next 2-3 years. Charles
Tompkins, Managing Director of CTC, pointed out "The highly successful and productive relationship
already established between CTC and Alcatel, makes this partnership an ideal arrangement for both
parties. While Alcatel will support CTC's expansion and development, CTC will be able to provide
Alcatel with the most technically advanced cable installation and protection solutions available to the
submarine cable market."
About Alcatel In November 1999, RHK, a leading telecommunications analyst firm, said that Alcatel
holds a 21% share - the number one position - of the world's total transport market, which comprises
submarine and terrestrial transmission systems. RHK noted that Alcatel's market-leading 37% market
share in the submarine networks segment helped secure the top position in the total transport market.
In addition, RHK found that Alcatel commands a 37% share of the digital cross-connect systems (DCS)
segment. Cross-connect systems contain the enabling technology for operators to offer high
bandwidth services. Alcatel is also cited as the global leader in terms of DWDM market share for the
global market encompassing both terrestrial and submarine applications.
Alcatel is the world leader in delivering full turnkey submarine network solutions and services. Alcatel
leads this industry in terms of:
- having the highest sold capacity up to 5.12Tbit/s for the long-haul systems and 3.6Tbit/s for the
short-haul ones, using the latest DWDM technology;
- having the largest manufacturing capacity at 85,000 km per year strategically located around the
Globe;
- using 9 dedicated purposed-designed vessels for a tight control on the delivery schedule.
Current contracts, worth US$ 4.5+ billion, include the most advanced undersea networks in the world
today: Atlantica-1 and FLAG Atlantic-1 systems in the Atlantic, the FLAG Pacific-1, Japan-US and
Southern Cross transpacific systems, and the MAC and MAYA-1 systems in the Americas and the
SAT-3 around Africa.
Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking
solutions to established and new carriers, as well as enterprises and consumers worldwide. With
120,000 employees and sales of EURO 23 billion in 1999, Alcatel operates in more than 130 countries.
About CTC CTC entered the submarine cable industry in 1996 with the primary objective of bringing
a science based approach, developed in the technically demanding pipeline burial market, to the
submarine cable industry.
Since then CTC has introduced a range of state of the art installation and trenching equipment which
has consistently set new standards in cable protection. This equipment includes:
C-Trencher 1 - introduced in 1998. A heavy weight, high productivity, ROV based, jet
trenching system able to bury cables to a depth of 1.5m in water depths of 2500m
C-Trencher 2 - introduced in 1999. A development of C-Trencher 1 but with the addition of a
track base. The system is offered as part of a complete spread with the dynamically
positioned support vessel 'Ocean Commander' and can bury cable to 2m in water depths of
3000m. The spread is operational up to sea state 7.
CTC Rockplough" - introduced in 1999. An industry unique plough able to bury cable very
deeply in a comprehensive range of seabed conditions, including weathered rock.
CTC provides a comprehensive cable installation service from route analysis (offered in conjunction
with SAGE Engineering) through to post lay burial. Advanced seafloor engineering means that CTC is
able to continuously innovate and ensure that customers receive the most productive, efficient and
cost effective solutions for cable installations worldwide. Sales in 1999 were US$25m, a figure which
is set to more than double (to US$55m) in 2000 as a result of the investment and development program
currently being implemented. CTC intends to be the world leader in cable burial and protection,
probably the most critical feature of the installation of the new generation very high capacity cables.
CTC is recognized worldwide as a pioneer in the application of advanced and specialist technology
aimed at improving the reliability and productivity of installation operations and significantly enhancing
cable protection. CTC owns and operates state-of-the-art vehicles and equipment for cable installation
including two heavy weight, deep burial trenching spreads, a unique Rockplough" designed to bury
and protect cable in a comprehensive range of seabed conditions and a range of modular deck
equipment.
CTC's first cable installation vessel, a fully equipped, 4000T, purpose designed cableship, is based on
the highly successful UT745 design. The vessel features a number of technical innovations such as
self fleeting drum tensioners, enabling full competency in both installation and maintenance roles, and
an integrated control and navigation system allowing for lower manning and improved reliability. It has
an exceptionally high bollard pull which gives it the ability to support a CTC Rockplough", providing the
highest level of ploughed cable protection available in the market.
CTC has an active program of contracted work including the installation of the Manx cable for British
Telecom, FLAG Atlantic (high capacity trans-Atlantic network), Pangea (Northern Europe) and Tiger
(Hong Kong to Japan) and two major post lay burial contracts - SAC (South America) and Southern
Cross (South Pacific).
Contact press@www.alcatel.com |
