TAT-12/13 as a Revenue Source
Cost $750M to install and 25 year expected lifetime
Capacity = 300,000 simultaneous voice channels
Assuming $1 per minute revenue per telephone call TAT-12/13 could generate $18M per hour at peak capacity or revenue equal to total installation cost in less than 2 days of operation!
Assuming average of 10% of peak capacity, revenues exceed installation cost within 3 weeks of operation
TAT-12/13 with Competitive Pricing
- Assume 15% return on investment so principle and interest = $115M per year
- Cable maintenance and R&D = $85M per year
- Management of accounts = $50M per year
- Average 10% of peak capacity used = 30,000 simultaneous telephone calls 24 hours per day on average
- Cost of transatlantic portion of telephone call is less than $0.016 per minute!