Manx Telecom makes major strategic investment in enhanced off-Island links

25th January 2010

Manx Telecom, part of the Telefónica Group of companies, recently made a major strategic investment strengthening the telecoms links between the Isle of Man and the rest of the world. At the same time, it has significantly cut bandwidth costs across the board for its off-Island Ethernet and Internet Protocol solutions

The company has invested in quadruple connections from the Island, via four separate undersea fibre optic circuits, which connect through the UK and Ireland into the main international data hubs.

The new circuit capacity represents a significant enhancement of the Island’s ability to send and receive telecommunications and data traffic, and signals the importance of telecommunications to the Island’s economy, now and in the future. It also highlights the Island’s growing global reputation as a location for eBusiness.

“We already had multiple routes off Island which have proved extremely reliable,” says, Managing Director, Chris Hall, “but we have decided to make a step change in both the resilience and capacity of the links we can offer clients. The decision to make this investment was prompted by what is, in effect, a growing transformation of the Manx economy, particularly around eBusiness, eGaming and eFinance, all of which rely on ultra high capacity and reliable connectivity between our Island and the world’s international data hubs”.

According to Manx Telecom, the reduction in bandwidth costs is closely linked to the newly enhanced connectivity. “As demand for eBusiness solutions on the Island increases, so the capacity and marginal unit cost of utility products such as Internet bandwidth and electricity must fall,” says Chris, “and we wanted to ensure that the maximum number of customers would be able to take advantage of the enhanced reliability and capacity of the new links, so have cut bandwidth costs for our off-Island Ethernet and Internet Protocol solutions. At the same time, we have introduced a simpler pricing structure across a number of products to offer significant savings at all levels of bandwidth usage. It’s all part of our continued focus on reducing the cost of connectivity, and by doing so, underpinning and enhancing the Isle of Man’s position as a global leader in eBusiness.”

Manx Telecom maintains that, in the wider world, the criteria for judging the Island is changing.

“The Isle of Man is now seen as an international business centre with a highly diversified economy,” says Chris “and it’s an absolute and fundamental requirement that we the incumbent wholesale and retail operator deliver ultra reliable, high capacity connectivity linking the Isle of Man to the rest of the world. Failure is not an option. Also, in addition to greater resilience, the enhanced capacity for the new circuits is considerable. The technology used within this network is extremely scalable, and is capable of delivering more and more capacity as the Island’s success as an eBusiness economy continues to gain momentum.”

Recently, PokerStars (a Data Centre client of Manx Telecom) hosted the world’s largest online poker tournament from Manx Telecom’s Isle of Man Data Centre, which saw 149,196 players simultaneously competing online for a top prize of $50,000. The tournament, which took place over six hours, set a new Guinness World Record, with PokerStars seeing a total of 444,037 simultaneous players online at one time – a massive number for what is a highly interactive site.

Gary Hill, Head of Network and Data Centre Operations at PokerStars, commented, “To maintain our competitive advantage, and to run record breaking events of this nature, requires real commitment and a strong partnership with your connectivity and data centre solutions provider. I’m very glad to say it continues to be our strategy to work with Manx Telecom to ensure that the Isle of Man is best serviced with a diverse range of multi-gigabit connectivity solutions and purpose built world class data centres. Players increasingly only want to deal with reputable established companies in well regulated jurisdictions, and being based in the Isle of Man, regulated by Isle of Man Gambling Supervision Commission and supported by Manx Telecom, PokerStars is ideally placed to continue its exponential growth and keep breaking records for the foreseeable future”.

The Isle of Man government has prioritised the development of eBusiness on the Island, and was one of the first jurisdictions in the world to introduce legislation specifically designed to facilitate eBusiness and eGaming companies establishing themselves on the Island. Manx Telecom is also an Isle of Man Government Gambling Supervision approved provider of Disaster Recovery Services to eGaming businesses world wide.

Manx Telecom has frequently pioneered telecoms technologies, and is seen as a leader in converged networks and services. It was one of the first operators in the world to offer broadband ADSL services to customers; in 2001 it became the first company in Europe to launch a live 3G network, and In November 2005 it became the world’s first company to offer a HSDPA (3.5G) service. More recently, its investment in FTTC (fibre to the cabinet) and in ADSL2+ technology has ensured 100% broadband coverage to all lines on the Island, which currently experiences higher average broadband speeds than the UK and many other mainland European countries.

Manx Telecom has invested more than £50 million over the last five years in the development of a world-class telecommunications network, and is committed to a further £30 million investment in the next three years. Part of this investment involved over £25 million designing and building a Next Generation Network (NGN) the digital backbone for the Island’s future development. Based on Internet Protocol (IP), the NGN enables Manx Telecom to offer its personal and business customers on the Isle of Man the ability to access and manipulate voice, data, television, and video, on one seamless converged network – the first community in the world to be able to do so.

Central to the company’s bid for global eBusiness customers has been a 15 million investment in a purpose build Data Centre offering world class data hosting, fully managed outsourced hosting platforms, disaster recovery, offsite data backup services, and global connectivity. The Data Centre’s clients currently include blue chip companies in a wide variety of eBusiness sectors, from eGovernment and eFinance to eMoney, eGaming, eMusic, and eTravel.

According to Manx Telecom, its recent investment in enhanced off-Island circuit capacity is expected to make the Island an even more attractive location for businesses in a global economy, and enable businesses already established on the Island to maximise their potential to trade with the world.