1. Local Loop (Access) ADSL

2. What was the problem (Prior to introduction of DSL) ? Why ADSL is a/the Solution ADSL Deployment within Gulf States ADSL Deployment in Bahrain Issues to address when deploying DSL (Problems/Solutions) Conclusion & Recommendation Presentation Overview

3. Bill Gates "gave his vote toward digital subscriber line (DSL) technology as the next big step in bandwidth" in his keynote address at the Comdex/Fall '97 trade show. - (Source: COMTEX Newswire dated November 11, 1997) "We're sucking information through a straw when what we really need is a fire hose.” -Eckhard Pfeiffer, President and Chief Executive Officer, Compaq (Source: Comdex Keynote Presentation, December 1997.) "The new DSL technologies are expected to drive a wide variety of applications in education, health care and telecommuting... allow(ing) consumers in homes and businesses to have access to high-speed services normally requiring expensive fiber optic line connections.” -Vinton Cerf, MCI's Executive Vice President of Internet Architecture. - (Source: interview published April 22, 1997 in the CyberTimes on-line version of The New York Times) "We want to get more bandwidth and capacity out of our existing copper loop using ADSL.” -Duane Ackerman, President and CEO of BellSouth (Source: interview published March 31, 1997 in CommunicationsWeek, p. 14) What was the problem (Prior to introduction of ADSL)

4. Why ADSL is a/the Solution - 1

5. Providers: Cost effectiveness (relative to fiber) Marketability of Applications Off-load Internet Traffic from Switches Users: Economical Bandwidth Always on Connectivity Used for more than one service Security Quality Why ADSL is a/the Solution - 2

6. What can I use ADSL for? High-speed Internet access Corporate Local Area Network (LAN) access E-Commerce Telecommuting / Virtual Private Network (VPN) Distance learning Video-On-Demand Voice over Internet Protocol (VoIP) / IP dialtone Video conferencing Medical imaging Real-time information exchange Entertainment - online gaming

7. Gulf StateDSL Supplier BahrainAlcatel UAEEricsson, Lucent, Juniper, Cisco SaudiAlcatel, Lucent KuwaitAlcatel QatarAlcatel, Cisco Oman ADSL Deployment within Gulf States - 1 Suppliers of DSL

8. ADSL Deployment within Gulf States - 2

9. ADSL Deployment within Gulf States - 3 GCC average: 2.8% Note: GCC average is calculated based on total DSL Customers divided by total Internet Customers within GCC.

10. ADSL Deployment in Bahrain - 2

11. How do we connect our Speednet customers? PSTN ATM ATM NODE DSLAM Inet Platform ADSL Deployment in Bahrain - 3

12. e BRAS Internet e DSLAM Video Server Management Controller Encoder DSLAM ATM PC for Internet Access e 1 Splitter Amulet ADSL STB TV PC for Internet Access e 1 Splitter Amulet ADSL STB TV PC for Internet Access e 1 Splitter Amulet ADSL STB TV ADSL Deployment in Bahrain - 4 LAN

14. Worldwide Broadband Connections DSL Continues to Dominate Worldwide BB to reach 225 million connections in 2006 DSL largest market worldwide, and expected to remain so to 2006: Relies on current infrastructure, self installation as high as 70% in US Cable modem most viable in markets with already installed cable systems FWB not suitable for mass market deployment: costs, not suited for wet or mountainous geographies, high license fees in Europe

15. Local Loop Unbundling - Doomed to failure? Efforts to loosen incumbent grip on local loop by regulators generally fruitless in Europe, US, A/P Incumbent NSPs protecting their competitive advantage (sole access to local loop) Forcing incumbents to permit competitive NSPs access to local loop misguided: Lack of information on condition of local loop to competitive NSPs (sometimes, even to incumbent) Technical & logistical complexity: outdated technologies Time: Long legal challenges by incumbent detrimental to competitive NSP business models

16. Wholesale Network Access - The only viable solution? Experts believe creating equitable wholesale market (most practical solution). Regulators must: Ensure incumbent offers wholesale service Bring down wholesale prices in rapid timeframe Proper & equitable wholesale price controls is a must Avoid cross-subsidization by incumbent through transparency and accounting separation of incumbent wholesale & retail operations

17. Conclusion & Recommendation Conclusion & Recommendation ADSL provides a new way to use existing phone lines. It’s faster! It’s always on! Voice and data on one line at the same time! DSL leading the way in broadband deployments Cable modem is limited by low CATV installed base Broadband Satellite & Metro Ethernet sporadic and limited ADSL is the best way to get online! Development on ADSL is still progressing e.g. ADSL II+ We Should think of peering and local content

18. To be or not to be DSL As an interim solution Using existing copper wire for broadband access Very quick deployment Very cost effective Standardised already

19.  Thank You

20. Appendix

21. Tariff Bahrain ADSL Tariff - 1

22. Qatar & UAE ADSL Tariff - 2

23. Kuwait Tariff – 3.a

24. Kuwait Tariff – 3.b

25. Saudi Tariff – 4

26. DSL History Bell Labs discovers a new way to make traditional copper wires support new digital services Phone companies start deploying High-Speed DSL (HDSL) to offer T1 service on copper lines without the expense of installing repeaters. Phone companies begin to promote ADSL as a way to enter the video market. Innovative companies begin to see ADSL as a way to meet the need for faster Internet access ADSL is being deployed for fast Internet access in the United States, Europe, East Asia, South America and across the globe Singapore Network launched the first commercial ADSL 1985 - 1990 - 1995 - 1996 - 1997 - Now -