FierceTelecom: With all of the military bases going up, what does that mean for GTA Teleguam? Is the military a big customer?
Moffat: The military is a big customer. We have varied fiber DWDM rings throughout the island and they lease a lot of circuits from us. We lease circuits to the military, to the government, and businesses on the island.
We also connect all three of the submarine cable landing stations. As such we're the on island transport for all of the cables coming in and out of here. We had 8 cables that landed in 3 submarine cabling stations, but now we have added three more with rumors of adding another one. There's another cable from Malaysia Telecom and AT&T called AAG which is coming in as we speak. Then, there's another cable coming from Quajaline, which is an island out in the Pacific where we do a lot of missile testing. You could argue we are geographically remote, but we're one of the most connected places on earth. There's a lot of submarine cable capacity coming through here. We started getting more connectivity through here from that cable cut that happened in the Taiwan straits.
FierceTelecom: So you're seeing a lot of action in submarine cabling?
Moffat: If Parsons comes to the island and do a project for the Navy or the Air Force, we'll run the capacity between the bases.
FierceTelecom: Okay, the economy continues to be relatively weak. Has that slowed down your business customers from purchasing new services or canceling others?
Moffat: We've seen some retrenching and trimming extra lines. The general push is for more business to come on the island and prepare for the buildup. We're in a unique situation because we're seeing some attrition in our existing customer base, but we're also seeing new customers come in for business and residential services. We have a lot of growth on the wireless and the TV side. The economy in Guam is relatively flat. It has not declined much. We have seen tourists drop off, but the pre-build-up has been happening which is causing our business to actually do well.
FierceTelecom: Taking a page from AT&T U-Verse and other carriers, GTA is offering IPTV service. How has that rollout gone thus far?
Moffat: It's very much like U-Verse with the exception of the Greenfield areas. In the Greenfield areas we're doing FTTH. We've also been using the U-Verse strategy, which is to move the fiber out into the network and use the copper loops.
What we're moving to next year is an aerial fiber overbuild. Out of 40,000 homes we have about 1,000 that are Fiber to the Home, and we're growing that number. The rest are served via copper, but we're going to start overbuilding this quarter. What we're going to do is leave the copper in the ground for basic telephone service, but we'll be using the fiber for Internet and TV.