SJC Entitlement/IRU on Sales

Available Capacity Entitlement:

Multiple 100Gbps wavelengths on following segments of SJC cable system are available

• China (Shantou CLS) to Japan (Chikura CLS)    
• China  (Shantou CLS) to Hong Kong (Mega-I PoP) 
• Hong Kong (Mega-I PoP) to Japan (Chikura CLS)
• Entitlement/IRU on other segments are subject to further confirmation.

Agreement Term:  the remaining life-time of SJC cable system which was ready for service in June 2013. 

Price Compositions

• Entitlement Cost, NRC, to be paid upon execution of agreement or order.
• Light-Up Cost, NRC, to be paid during the next phase of SJC upgrade.
• O&M Cost, annual recurring charge, to be paid annually in advance. 

How to Light-Up the Capacity Entitlement

To light up the Capacity Entitlement (dark wavelengths), the selling party will undertake its ‘Consortium Member’ status to:

• Carry out the capacity light-up on behalf of the Customer, following Consortium process and cycle time (e.g. collation, billing milestones payment, acceptance, delivery).
• Make available the corresponding “Backhaul” bandwidth to match with the Wet Segment submarine wavelengths.

Light-Up Cost for  Capacity Entitlement

Current indicative costs for Light Up of 100Gbps wavelength for one segment is USD 250,000.

The selling party will charge the Customer based on actual capacity light up cost plus a mutually agreed markup, no more than 15%.

Lighting-up of Capacity Entitlement (dark wavelengths) to the Consortium PoPs / MMR will be at mutually agreeable cost plus basis.

O&M Cost

To maintain the capacity for the life of the SJC cable system, the annual O&M Cost will be charged in advance at 3.5% of the Purchase Price (Entitlement Cost + Light-Up Cost ).

Upgrade Rights

SJC cable system is now operating with 100Gbps DWDM technology, upgradable to 400Gbps DWDM technology.

If Technology upgrade is made available through the Consortium (e.g. if the same wavelength can subsequently accommodate 400Gbps at some point in future) and the Customer is entitled to implement it, while the associated light-up costs will be similarly borne by the customer at Actual Cost-plus basis.