1. 1 IPT market Development in the Caucasus Region

2. 2 Europe and Caucasus Region

3. 3 Caucasus and Central Asia

4. 4 Caucasus Region Georgia 4,5 mil. – Population 12,6 billion $ - GDP 30% of Internet Users Azerbaijan 8,3 mil. - Population 44,3 billion $ - GDP 44% of Internet Users Armenia 3 mil. - Population 8,8 billion $ - GDP 47,1 % of Internet Users

5. 5 Key Player ISP’s in Region Georgia Silknet Foptnet Caucasus Cable System GRT (Georgian Railway Telecom ) Azerbaijan Delta Telecom (main wholesale ISP) TEC - Trans Euro Com (Alternate FO network owner) Armenia Armentel Fibernet GNC Alfa

6. 6 FO development - stage 1 Foptnet (TAE project fiber optic cable) – Cable installation finished in 2000 – DWDM in 2010-11, – 40 Gbps Transferring Capacity – Length 433 km

7. 7 TAE (Trans Asia Europe) MAP

8. 8 FO development - stage 2 Georgian Railway Telecom – GRT (TRACECA project) – Cable installation finished in 2003 – CWDM in 2007, – 60 Gbps Transferring Capacity – Length 620 km

9. 9 TRACECA MAP (Caucasus region)

10. 10 TRACECA MAP (Caucasus region)

11. 11 FO Cable resource owners in region Silknet (former State Telephone Network Operator) – Uses the same infrastructure as GRT (TRACECA project FO Trunk) – DWDM in 2007-2008, – 80 Gbps Transferring Capacity – Length 620 km

12. 12 FO Cable resource owners in region Caucasus Cable System (Poti – Balchik Black Sea FO cable) – Cable installation finished in 2008 – DWDM equipment, – 1920 Gbps Maximum Transferability – Length - 1200 km – In Poti interconnected with GRT Infrastructure

13. 13 Negative Factors in Region Luck of redundancy in region from one ISP; Non-equal business environment in Georgia- Armenia-Azerbaijan; Partially closed market for non-local wholesale ISPs. Difficult political situation between Armenia- Azerbaijan

14. 14 Positive Factors in Region Alternate routs to penetrate in region Only 40% average Internet users in region 58-60 milliseconds time delay from Europe Opportunity to penetrate Iran market

15. 15 Iran Market Iran 77 mil. – Population 863.5 billion $ - GDP 43.2% of Internet Users Telecommunication Company of Iran (TCI) – Leading Iranian ISP TCI Prices for Global IP resource 1024 kbps – 10,800,000 Rials = 1,031 USD 2048 kbps – 27,000,000 Rials = 2,579 USD (source: http://www.tci.ir/s19/page2.aspx?lang=En)http://www.tci.ir/s19/page2.aspx?lang=En

16. 16 Internet in India India 1,173 mil. – Population 4.046 trillion $ - GDP 8.5% of Internet Users

17. 17 Submarine Cable Map 2011

18. 18 Global Internet Map 2009

19. 19 Used Sources www.telegeography.com www.internetworldstats.com www.wikipedia.org www.itu.int www.tci.ir www.grt.ge http://business.mapsofindia.com/india-gdp Ministry of Economics of Georgia Georgian National Commission of Communications The CIA World Factbook TRACECA project documents TAE project documents www.transeurocom.az www.rozvytok.com

20. 20 George Gotoshia - “Quantum Group” ltd - Tel.: +995 77 22 22 88 E-mail: george@gotoshia.com