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News
Pacnet Named Wholesale Operator of the Year at Asia Communication Awards 2011
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Panel of esteemed judges comprising industry professionals, analysts and editors selected Pacnet as the best wholesale telecommunications operator in the Asia Pacific region
As we cross the halfway mark of 2011, it is becoming clear what the next wave of the Internet will be about zettabytes of data. From text and photos to videos and software applications, digital content in all forms and sizes, generated by the ever-increasing number of web users all over the world, will become so pervasive that burgeoning traffic volume will burden the Internet backbone tremendously. In this issue of Pacnet News, we throw the spotlight on the massive growth in digital content Asia is seeing and look into how it will reinvent the ways data is delivered to web users in the region (see pages 47).
SINGAPORE Pacnet has been named Wholesale Operator of the Year at the Asia Communication Awards 2011. The Awards, currently in its first year, recognize and honor the achievements, innovations and outstanding new services of the regions telecommunications carriers and executives. We are extremely honored to receive this award, which recognizes us as Asias best in the wholesale telecommunications space, said Bill Barney, Chief Executive Officer of Pacnet at the awards ceremony held on 22 June 2011 in Singapore, on the side of CommunicAsia 2011, the regions largest international communications and information technology event. This award endorses our strategy of leveraging our unsurpassed subsea network coverage in Asia to deliver innovative, industryleading wholesale network services packaged with class-leading service delivery, enabling carriers to build the resilient and redundant networks that are core to their business, added Mr Barney. Winners of the inaugural Asia Communications Awards were chosen by a panel of independent judges comprising industry professionals and analysts, as well as editors from leading telecommunications trade publication Total Telecom. Pacnet delivers a wide variety of wholesale capacity services ranging from Indefeasible Rights of Use (IRUs) to private line networks, which is backed by its ownership of 46,420 km of fiber optic submarine cable infrastructure connecting key locations in Asia and across the Pacific Ocean. One of the key products in its product suite is Pacnet SmartTransport, Asias first international private line service to address the growing demand for uninterrupted network connectivity. Pacnet SmartTransport brings to the market a unique protected international private line connectivity service that offers customers the flexibility of choosing between three levels of protection, to meet their need for increased network resilience.
Pacnet CEO Bill Barney (right), receiving the award from David Kennedy, Telecoms Research Director at Ovum, one of the judges of the inaugural Asia Communication Awards
Through the highest grade of protection called 1:1 Protection, Pacnet SmartTransport enables almost instantaneous automatic network restoration across a dedicated alternative network path should a network segment experience disruption, thus allowing business operations to continue uninterrupted. This premium service is also delivered with Pacnets industry-leading availability and latency service level agreements (SLAs).
Events
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Case Study
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Product Updates
Tech Q&A
June was an exceptional month for Pacnet. We appreciate the recognition by industry peers as Pacnet was named Wholesale Operator of the Year at the Asia Communication Awards 2011 held in Singapore (see page 1). The awards ceremony was held on the side of CommunicAsia 2011, at which my team and I had the privilege of sharing our perspectives with industry leaders and analysts (see pages 89). Around the same time, Pacnet team members also won accolades for living up to our core value of putting customers first. Two of our Hong Kong sales managers were bestowed the prestigious HKMA Distinguished Salesperson Award, the bar of excellence in selling recognized worldwide by sales professionals (see page 3). To keep up with the demands of our customers, we are continually growing our network in the region through infrastructure enhancements and partnerships (see pages 23). Through the launch of our new international gateway in Chennai and the partnership with Philippine telco PLDT, Pacnet is now able to deliver high-speed connectivity solutions to businesses in India and the Philippines. Our partnership with India telco Bharti Airtel and the new link to Vietnam has also expanded our network connectivity (see page 12). The pact strengthens our delivery of enhanced high-speed broadband connectivity to the US via Asia, while increased connectivity through a new direct subsea route to Ho Chi Minh City via Singapore places Pacnet in an advantageous position to handle the growing international connectivity requirements of Vietnamese businesses. We hope you enjoy this edition of Pacnet News. As always, we look forward to your continued feedback and comments on how Pacnet can better serve your communication and network requirements
We are extremely honored to receive this award, which recognizes us as Asias best in the wholesale telecommunications space. This award endorses our strategy of leveraging our unsurpassed subsea network coverage in Asia. Bill Barney, CEO, Pacnet
Best regards,
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News
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Pacnet Sales Managers Win 43rd HKMA Distinguished Salesperson Award
HONG KONG Pacnets Billy Chau Man Lai and Alvin Leung Chi Pong have been named winners of the 43rd HKMA Distinguished Salesperson Award at the award presentation ceremony held on 10 June 2011 at the Hong Kong Convention and Exhibition Center. Mr Chau is Assistant Sales Manager at Pacnet Hong Kong and has worked in the telecoms industry for 10 years, while Mr Leung is Account Manager at Pacnet. Both of them shared that paying close attention to the needs of customers, so as to tailor relevant solutions, is an essential requirement in winning them over, as well as keeping them. The award, which is part of the Distinguished Salesperson Award Program, is given out annually to recognize outstanding sales personnel in the territory. First launched in the United States in 1950, the award is now recognized worldwide by sales professionals as the standard of excellence in selling.
Pacnet Assistant Sales Manager Billy Chau (left) and Account Manager Alvin Leung (right) with Pacnet Greater China Managing Director Alice Ting (center) at the awards ceremony
The decision to choose Pacnet as our service provider was made after a thorough assessment as well as a trial run to test out its proposed solution, where Pacnets solution proved to be best-in-class. Dr Koranuth Theppadungporn, Managing Director of Accounting and Finance of TCC
The new Global EIPL service is available now and is offered as a Point-to-Point or Point-toMultipoint service connecting the Philippines with Australia, China, Europe, Hong Kong, Japan, India, Indonesia, Korea, Malaysia, New Zealand, Singapore, Taiwan, Thailand, Vietnam and the United States. PLDT is the only Philippine telecommunications provider to be awarded the coveted Metro Ethernet Forum (MEF) 9 and 14 certification.
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Visual Networking Index: Forecast and Methodology, 2010 2015 report, Cisco, 1 June 2011
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Data centers will complement content delivery services in alleviating network infrastructure constraints in the region. The rollout of data centers in every country in the region can contain the need for hosting in another country, hence reducing slightly the demand for international connectivity, Mr Hibbard noted. In anticipation of the robust growth in bandwidth demand and rapidly changing online consumption habits in Asia Pacific, Pacnet has continuously invested into growing its network infrastructure. Last year, the company added capacity on EAC Pacific, its subsea cable spanning 9,620 km across the Pacific Ocean and connecting Chikura, Japan, to Los Angeles. More recently, Pacnet has also launched two Data Landing
Through our fully meshed optical network across Asia, we are able to deliver additional bandwidth and redundancy to support future growth, while staying cloud and videocentric, Mr Kwan said. This next-generation technology, Mr Hibbard noted, has helped to cushion the impact on the network in the face of natural disasters such as earthquakes and tsunamis. The telecommunications carriers of Asia Pacific have done a fantastic job in responding to enhanced networking techniques since the Taiwan earthquake in 2006, he said. The adoption of mesh networking has resulted in a vastly increased number of paths by diverse routes, and this benefit was clearly demonstrated in both the 2009 Taiwan typhoon and the recent Japan earthquakes.
speed of website responses is a key determinant of user experience quality. If a web page does not load completely in four to five seconds, a user is more likely to abandon the website, as the persons attention shifts to other matters. This, the research says, is attributed to the human attention span and the visual processing of information. Speed and reliability are essential to keep users satisfied with their Internet experience, said Wilfred Kwan, Chief Technology Officer of Pacnet. The average users do not know, nor care, how the content is delivered. All they want is raw speed that gets them to their destination.
Stations (DLSs) in Asia Pacific. These DLSs, which are backed by an extensive 46,420 km of fiber optic subsea cable network which ensure data hosted there is delivered as fast as possible through direct access to Pacnets subsea network.
Getting to a zettabyte
At some stage, there will be a need for a massive increase in international connectivity.
John Hibbard, President & Chairman of the PTCs Board of Governors and CEO of Hibbard Consulting, referring to Chinas connectivity needs
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Events
Build Up Networks for Expanding Asian Cloud
SINGAPORE Pacnets Vice President of Product Strategy & Management, Data Center Services, Martin Slater, shared how service providers in Asia could cope with growing network requirements brought about by accelerating adoption of cloud computing, in a presentation he gave to telco leaders, vendors and industry observers at the Commsday Singapore Summit held on 20 June 2011 at M Hotel. Mr Slater noted that businesses and consumers in Asia are snapping up cloud resources fast to cope with massive Internet traffic growth, which in turn places greater pressure on networks and hosting infrastructures in the region. Asia thus needs a network of interconnected, high-speed, hosting infrastructures as additional network capacity and hosting infrastructure is critical to support future growth of the cloud, he emphasized. Mr Slater also highlighted trends in the technology industry at the New Zealand Tech Connect 2011 held on the same day at Grand Copthorne Waterfront Hotel. The annual event was hosted by the New Zealand Trade and Enterprise, and attendees included technology companies from New Zealand and members of the ICT community
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Pacnet North America at NANOG52
DENVER Richard Kahn, Technical Director of Pacnet North America, spoke on undersea cable operations in Asia and their impact to IP Backbone Design at the recently concluded North American Network Operators Group (NANOG52) held over 12 15 June 2011, at the Sheraton Downtown Denver Hotel. In his presentation, Mr Kahn shared about NANOG52, which was held in Denver this year, is an educational and operational forum for the coordination and dissemination of technical information related to backbone/enterprise networking technologies and operational practices. Pacnet North America also supported the event as a sponsor.
SINGAPORE Pacnet CEO Bill Barney (above left) underscored the need for new approaches to keep up with the growing demand for connectivity in Asia Pacific in a CommunicAsia Summit 2011 address he delivered on 22 June 2011, at Marina Bay Sands. His presentation was part of the Next Generation Broadband Infrastructure series of talks focusing on highlighting the challenges and trends encountered in the regions broadband deployments. Mr Barney threw the spotlight on several factors affecting the rollout of broadband projects in the region, among which Asias dependency on subsea cables for web connectivity topped the list. Subsea cables are susceptible to natural catastrophes and damage caused by ship anchors and fishing trawlers, Mr Barney noted.
Also speaking at the same conference was John Garrett (above right), Pacnets Vice President of Product Strategy and Management, Carrier Services. In a session on 21 June 2011 dedicated to Cloud Computing, Mr Garrett shared that consumers, instead of enterprises, are behind the explosive traffic growth, notably through online video. A majority of the Internet traffic moving into and out of Asia is sent through subsea cables, Mr Garrett noted, and as such, telecommunications service providers in the region should place greater focus and emphasis on the investments into their backend systems.
how geographical limitations of the Asia Pacific region drive the dependency on submarine cables systems to provide both inter- and intra-regional cross-border connectivity.. He further elaborated on the factors that impact the design, reliability, outage susceptibility, and how repair schedules of these systems have downstream affects on the networks reliant on their availability.
in Singapore.
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Events
Case Study
Pacnet Australia Helps Grow Partners Skills
SYDNEY, MELBOURNE Pacnet recently held two unique workshops in Sydney and Melbourne in conjunction with Green Ant Marketing for members of their Partner Program. The oneday interactive workshops allowed partners to hone sales and marketing techniques to gain more leads and to close more sales for their businesses. Nine partners signed up to a Pacnet sponsored education program that will expand on the techniques taught at the workshops over the coming months. The workshops also featured networking sessions with high-profile guests including Ron Gauci, CEO of Melbourne Storm Rugby League Football Club. Founded in 1985, Japan-based fabricated metal products and precision machine parts maker Parts Seiko has established a reputation for producing high-quality components for a broad range of products across verticals in domestic and overseas markets. The company specializes in low-volume and fast turnaround manufacturing of customized components using unconventional materials, and these metal products are found in the gears of automobiles, as well as printing and medical equipment. The companys other product lines include semiconductor and optical components, industrial assembly parts and various surface treatments such as electroplating. To develop new products and boost local and global sales, Parts Seiko set up its wholly-owned Hong Kong subsidiary, Hong Kong Parts, in 2000, followed by its first China factory in Shenzhen a year later to capitalize on the countrys cost-effective labor force, to meet its accelerating production demand. The expansion was initially to support the export sales of domestic customers, but Japanese companies that had entered the East Asia and Southeast Asia markets were subsequently included. In May 2008, the company grew its footprint in China by building a second plant in Shenzhen to keep up with demand.
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Challenges
As with any company expanding abroad, Parts Seiko was aware of the importance of efficient connectivity to ensure reliable communications and fast data access between its branch offices and its headquarter. That prompted the company to develop a proprietary Enterprise Resource Planning (ERP) system linking its Japan and China sites. Consolidated information is critical to our production efficiency, which is why our remote sites must be supported by a reliable international telecommunications network that will ensure the availability of our production management system, said Satoshi Okuyama, Assistant Manager, Systems Department, Parts Seiko. The ERP system manages the companys inventory and production information using an efficient production model and processes large volumes of data. That is why we need a powerful network capable of scaling bandwidth capacity according to our business demands and secures our connectivity. Adequate bandwidth is also necessary to support our real-time communication tools and bandwidth-hungry Computer-Aided Design (CAD) applications, Mr Okuyama explained.
The Future
Parts Seiko will continue its business expansion in China and plans to tap its enhanced production model to support both domestic and global demands. The company is looking to deploy an enterprise-wide accounting system linking its Japan, China and Hong Kong operations next, Mr Okuyama said. Pacnet is positioned to continue to support the companys Asian market expansion through its extensive IP network solutions.
Pacnet Greater China Managing Director Alice Ting (left) presenting the Diamond Partner Award to Ravi Nagdev of Dual Layer IT Solutions Ltd
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Product Updates
the 17th largest economy in the world with nominal GDP of $436 billion and nominal GDP per capita of $4,357 by 2025. PricewaterhouseCoopers in 2008 forecast that Vietnam will be the fastest growing of emerging economies by 2025 with a potential growth rate of almost 10% per annum in real dollar terms, to about 70% of the size of the UK economy. The 2000 signing of Bilateral Trade Agreement (BTA) between the US and Vietnam has been an important milestone in the countrys march for long-term sustainable growth. The agreement paved the way for the entry of Vietnamese goods in the US market, which is expected to accelerate the countrys transformation into a manufacturing-based, exportoriented economy and attract more foreign investments to the country. Pacnet formally established presence in Vietnam in 2010 when the company deployed a Point of Presence (PoP) in Ho Chi Minh City, offering IP VPN and IPL services to the country via a terrestrial North-bound link from Hong Kong. Having two routes to Ho Chi Minh City not only enhances network redundancy but also allows Pacnet to provide lower-latency connectivity to Vietnam through a shorter South-bound Singapore route. Anticipating the countrys increased international connectivity demand, Pacnet has deployed a new Layer 1 PoP in Ho Chi Minh City early this year, which enabled Pacnet to provide full E1 (2048bkps) IPL services with two different route options for protected services. Having two routes to Ho Chi Minh City also results in dramatic latency enhancements for our IP VPN service to Vietnam.
Tech Q&A
Future-Proofing Networks with 10 Gigabit Ethernet LAN PHY
Network infrastructures are under tremendous pressure as exploding Internet traffic volumes consume bandwidth capacity fast. To maneuver this challenging landscape, enterprises and service providers are now turning to more cost-effective solutions, such as the 10 Gigabit Ethernet Local Area Network Physical Layer (10GbE LAN PHY). This growing preference is reflected in the dramatic increase in recent shipments of LAN PHY ports. What exactly is 10GbE LAN PHY and why are customers opting to future-proof their network with it? Hui Chun Yim, Pacnets Senior Manager, Product Strategy and Management Carrier, weighs in. Pacnet News (PN): What is 10GbE LAN PHY? How does it differ from 10GbE WAN PHY? Hui Chun Yim (CY): LAN PHY and WAN PHY are networking specifications that allow data transfer of 10 Gigabits (10G) per second in LANs and Wide Area Networks (WANs) respectively. They are among different PHY specifications of the IEEE 802.3ae 10GbE standard ratified in 2002, which is part of the 10G transport. LAN PHY is commonly used in aggregated switches, operates at line rate of 10.3 Gbps, and is 10 times faster than a Gigabit Ethernet interface. It encapsulates Ethernet data using 64B/66B line coding. WAN PHY, differentiated from LAN PHY only by the WAN Interface Sublayer (WIS), provides a simplified Synchronous Digital Hierarchy (SDH)/ (Synchronous Optical Network ) SONET framer function. It is commonly used for core routers, operates at line rate of 9.95 Gbps, and is compatible with OC-192c/SDH VC-4-64c interfaces.
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PN: What is 10GbEs biggest advantage over traditional 10G network? CY: Its ability to lower significant equipment cost and ongoing maintenance. Customers are adopting 10GbE service for traffic aggregation. However, 10GbE is not necessarily a replacement for Wavelength as there are customers that still prefer 10G Wavelength for its transparency and manageability. PN: Why do enterprises achieve better return on investment (ROI) on LAN PHY than WAN PHY? CY: Since most companies have an existing Ethernet-based network, the LAN PHY interface is more cost-effective for network upgrades. WAN PHYs cost is significantly higher as it uses more proprietary technologies, equipment and interfaces produced by limited vendors. LAN PHY, however, uses more open systems supported by a growing number of equipment and interface vendors. For instance, a 24-port 10GbE LAN PHY switch costs about $4,000, while a 10G-port core router costs $70,000. PN: Which type of companies will benefit most from LAN PHY? Why? CY: Content Delivery Networks and Internet Service Providers that need to aggregate large traffic volumes. They are also the early adopters of LAN PHY. Multinational companies and large corporations will follow when their traffic volume exceeds their network capability. PN: Where do you see a demand for LAN PHY? CY: Asia. It is leading the adoption of 10GbE LAN PHY, as Asian countries are separated by water and aggregating 10G traffic requires the extension of LANs over subsea cable networks. US and European customers are also looking for a similar solution using their terrestrial networks. Building a LAN PHY network is challenging for subsea cable operators as additional equipment, or major network enhancements, may be required. Pacnet has the advantage in this area, because we have full ownership and control of our network. We can upgrade and configure our network to support our customers requirements, if necessary. PN: Tell us more about Pacnets 10GbE LAN PHY offering? CY: It is the latest addition to our 10G portfolio, created to address the demands of our customers that are looking for a cost-effective way to upgrade their networks. We also offer 10G Wavelengths and end-to-end Ethernet through our WAN PHY services. Different types of customers have varying business needs, but all of them demand speedier transport. We offer customers more choices to support their growing bandwidth requirements and our key differentiator across all our 10G services is the ability to offer highavailability and protected bandwidth.
PN: What drives the demand for 10GbE? CY: Traffic growth in corporate and carrier networks. The latest statistics from TeleGeography indicate that Intra-Asia and Trans-Pacific bandwidth will increase at a compound annual growth rate (CAGR) of 77% and 50% respectively, between 2010 and 2016. Carriers need 10G transport to support and monetize video and other bandwidth-hungry applications, while enterprises need high-speed transport to support increasingly complex internal applications and increasing server and storage workload.
Australia
Tel: 1300 PACNET (722 638)/ +61.3.9674.7559 Fax: 1300 555 076/ +61.3.9698.4875 Melbourne Office Level 1, 1 Southbank Boulevard Southbank VIC 3006 Sydney Office Level 11, 17 York St. Sydney, NSW 2000 Brisbane Office Plumridge House, Suite 22, 36 Agnes Street Fortitude Valley QLD 4006 Newcastle Office 123 Scott Street Newcastle NSW 2300
India
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Malaysia
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Netherlands
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Philippines
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China
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Singapore
Headquarters 10 Eunos Road 8 #08-01, Singapore Post Centre Singapore 408600 Tel: +65.6872.2638 Fax: +65.6591.9868
Taiwan
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Indonesia
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Thailand
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United States
California Office 435 Harriet Street, 2nd Floor San Francisco, California 94103 Tel: +1.415.287.2500 Fax: +1.415.287.2522 New York Office 90 Broad Street, Suite 1903 New York, NY 10004 Tel: +1.212.248.2800 Fax: +1.212.248.2288
Hong Kong
Headquarters 18/F, Cityplaza Three 14 Taikoo Wan Road Taikoo Shing, Hong Kong Tel: +852.2121.2828 Fax: +852.2121.2929
Korea
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Vietnam
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