Peering, network sharing, interconnects Eckart Zollner September 2014

Internet today: Usage & infrastructure

Current state of the Internet  Usage Globally 1 billion hosts, 3 billion users 50% of mobile phones are smartphones,  Users and trends (2012) Sub Saharan Africa 137 million (2 million fixed), mobile compound annual growth rate is 264% (4 years)  Internet user penetration Europe, US 84%, South Africa 50%, Kenya, Nigeria 39%, majority Africa10-20%Burundi under 2%

African Internet traffic  Distribution across Africa 99% of all traffic is inside Egypt, Kenya, Nigeria and South Africa.  Content locations 99% of content is imported  Exchange points US > 65 IXP Europe > 120 IXP Africa – 43 IXP

What drives the market ?

Technological change driving the market  GSM, 3G,Wi-Fi, and LTE have become global standards  IP is a universal language  Computing power and storage is becomming affordable to majorities  Modern technology allows for sharing (open access and virtualisation)  New technologies (HD voice and 3D HD video) drive bandwidth demand  Machine to machine communication, Big data explosion

Shift in source of revenue  Declining voice revenues Voice is replaced by electronic mail and instant messaging  Separation of transport and services layers Choice of providers leads to competition and innovation  Convergence Voice, data, applications and media all delivered over the same transport layer

Shift in strategic approach  From a national mandate to a national, regional and global imperative Deregulation, privatization and globalization requires new business models  From a static to a dynamic distributed environment Service delivery no longer to fixed locations but to mobile individuals.  From a defined environment to an increasing rate of change Technology has an ever increasing effect on the way business is conducted From a captive national market to an open global opportunity Consumer choice and mobility (nomadic) dictates how products are delivered

Network strategies and trends

Coopetition and the need for Carrier communities  Traffic optimisation Access to global, regional and national hubs to ensure route optimization on transmit and return routes.  Network resilience and service uptime Ability to re-route during POP or link outages  Access to content Content sources are geographically dispersed in ever growing number of locations.  Access to services and applications Most cost effective routes to local and international services and applications at lowest possible latency.

Infrastructure sharing  Address a geographically growing network presence Access to regional and national hubs to ensure route optimisation on transmit and return routes.  Meet new market demand for uninterrupted service levels Multiple redundancy and self healing as well as rapid reconfigurations required.  Provide real time services Most cost effective routes to local and international content at lowest possible latency.  Access to services and applications Service and application hosts are geographically dispersed in ever growing number oflocations..

Infrastructure and services outsourcing  Aggregation brings back affordability Economies of scale are required to ensure short term profitability.  Focus on revenues Fluctuating customer behavior requires more focus on sales, collections, security and combatting fraud  Benefit from faster technology refresh The market expects product and services convergence, the latest features and shorter implementation times  Shift from Capex driven to Opex driven Rapid turnaround times in revenue and expenditure management. Rapid service deployment Benefit from a global presence A successful global deployment requires local, regional and global presence and knowledge.

Peering with other providers  Access to other networks Increasing market reach and opening new opportunities for terminations. Reduce transit layers  Access to cable systems Diversification of transport routes  Access to content Local access to relevant content providers, access to national and regionalInternet sites  Access to Service providers Access to solutions such as storage, server hosting voice switching, applications, etc. Additional traffic routing options Increasing network resilience, route optimization, etc..

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