<html><head><meta http-equiv="Content-Type" content="text/html charset=iso-8859-1"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><br><div><div>On 01/08/2012, at 3:12 PM, Martin - StudioCoast <<a href="mailto:martin.sinclair@studiocoast.com.au">martin.sinclair@studiocoast.com.au</a>> wrote:</div><br class="Apple-interchange-newline"><blockquote type="cite">
<meta content="text/html; charset=ISO-8859-1" http-equiv="Content-Type">
<div bgcolor="#FFFFFF" text="#000000">
<div class="moz-cite-prefix"><font size="-1"><font face="Arial">This
raises some interesting questions. Does this indicate a
current oversupply of international capacity in Australia (at
least in the short term)<br>
or was it just the case of poor management?<br></font></font></div></div></blockquote><div><br></div><div>It's never been an issue of a lack of supply. None of the cables out of Australia (SMW3 being an exception) have any real capacity constraints.</div><div><br></div><div>Main issue is demand side:</div><div><br></div><div>TNZ, Telstra, Optus, TPG Telecom, Verizon all own capacity or their own cables. By the time you've taken that amount of demand off the table then it's hard to get backing for another cable. </div><div><br></div><div>MMC</div></div></body></html>