1 Feb 2010

Jean-Louis Parmentier

Chief Operating Officer, SEACOM Ltd

Parmentier@seacom.mu

SEACOM Story Update FEAST Workshop

Bruxelles, February 25th, 2010

2 Feb 2010

SEACOM is a privately funded African company, offering a 1.28Tb/s submarine fiber optic cable system linking Africa to Europe and Asia via the Middle East

“SEACOM is open for business and ready to supply complete solutions for Africa’s Broadband on Demand needs”

Wholesale provider of bandwidth

Deliver infrastructure support for the growth of the ICT sector, e.g. BPO, call centers, education

Be committed to the principles of open and equitable access to broadband

Facilitate the development of high volume, low cost market encouraging new industries to emerge, stimulating further demand

Compliment GSM and fixed line national carriers by providing low cost high capacity bandwidth and additional redundancy

Be fully funded & majority African owned (76.25%)

SEACOM snapshot

Fibre topographySEACOM’s drivers

3 Feb 2010

Defining the product

In order to address Africa’s broadband needs, SEACOM’s business case had to focus on an open access, low cost service that travels right to the point of need not just the shoreline

Affordability Accessibility1 2

Core ideas behind

SEACOM’s business

case

Core ideas behind

SEACOM’s business

case

Target those in need – East coast

Ensuring ‘open access’ policy consistent with the Kigali protocol

The “Death of distance” through a single price

Providing services to medical & educational institutions, partnering with Ubuntunet & TENET

True end-to-end solution from London to Johannesburg, from Mumbai to Nairobi…

Focus in getting backhaul to landlocked countries in need

Working in harmony with existing channels and building redundancy

Applying best practice risk management & disaster recovery across the full value chain & 24 hour global support

Without true open access, Africa will limit the potential of tomorrow’s unkown innovators

4 Feb 2010

• RFCS 23rd July 2009

• are the active parts of the

network in South east Africa :

• Currently over direct Mumbai-

Marseilles SMW4 capacity

• Completion Med & Red Sea Q2

2010

Network Schematic Deployment Information

Activation progress

Progress Dec 2009

5 Feb 2010

Achievements & challenges Jan 2010

Activated Capacity between Africa to :

• Europe 91%

• India 6%

• Africa 2%

• South East Regional 1%

Traffic breakdown Capacity

Wet cable : 100% ✔

Terrestrial backhaul :

• Fiber over power lines : > 99,9% ✔

• Underground fiber with route protection : > 99,9% ✔

• Underground fibers non redundant ☹

– Worst 3 months >97,8%

– Other > 99%

Availability

Activity figures

6 Feb 2010

SEACOM has strong company and shareholders commitments to Educational program initiative in Africa

Thanks to broadband access, information, specifically Educational content, is widely and freely available

SEACOM is offering reduced cost of international bandwidth for Universities and Research Institutions

• for non commercial and Acceptable Usage purposes

Educational program

SEACOM has extended the below cost bandwidth offer to the NREN of Southern and Eastern African Universities as well as to uBhuntuNet

• Tenet

• Kenet

• University Dar Es Salaam

Provision

Abundant Bandwidth Will Bring Near-term Change to Africa

7 Feb 2010

Immediate impacts of SEACOM: Kenya in focus

Went operational on 23 July 2009Went operational on 23 July 2009

Within 14 days of launch Safaricom Within 14 days of launch Safaricom CEO reported 200% increase in data CEO reported 200% increase in data

traffictraffic

Within 3 days Kenya reports 3-5 times Within 3 days Kenya reports 3-5 times increase in internet speedsincrease in internet speeds

International bandwidth supply International bandwidth supply increase of 700%increase of 700%

Impacts on Kenya include:Impacts on Kenya include:

8 Feb 2010

Immediate impacts of SEACOM on Mozambique

Went operational on 23 July 2009Went operational on 23 July 2009

One ISP customer doubled bandwidth One ISP customer doubled bandwidth from September 2009 for same price, from September 2009 for same price,

while others now offer end user while others now offer end user choice (double bandwidth for same choice (double bandwidth for same

price OR same bandwidth for half the price OR same bandwidth for half the price)price)

International bandwidth supply International bandwidth supply increase of 850%increase of 850%

After connection to SEACOM, ISP After connection to SEACOM, ISP verified a rapid increase in bandwidth verified a rapid increase in bandwidth

usage, and is now connecting their usage, and is now connecting their aditionnal STM-1 circuit in order to aditionnal STM-1 circuit in order to respond to their customers’ needsrespond to their customers’ needs

Impacts on Mozambique include:Impacts on Mozambique include:

9 Feb 2010

Immediate impacts of SEACOM: Uganda in focus

Went operational on Spetember 2009Went operational on Spetember 2009

Favorable comments from Uganda Favorable comments from Uganda Telecom on speed of the network and Telecom on speed of the network and

the IP Transit servicethe IP Transit service

Impacts on Uganda include:Impacts on Uganda include:

10 Feb 2010

SEACOM’s coverage and impact on Tanzania

Went operational on 23 July 2009Went operational on 23 July 2009

Vodacom MD stated that margins Vodacom MD stated that margins increased 30% the day they switched increased 30% the day they switched

from satellite to SEACOMfrom satellite to SEACOM

Pre-SEACOM international Pre-SEACOM international bandwidth supply= 300Mb/s. bandwidth supply= 300Mb/s.

Post-SEACOM international Post-SEACOM international bandwidth supply= 3000Mb/s, bandwidth supply= 3000Mb/s,

1000% increase1000% increase

University of Dar Es Salaam University of Dar Es Salaam increased capacity 1000%+ through increased capacity 1000%+ through

SEACOM relationship, 1SEACOM relationship, 1stst truly truly “wired” university in East Africa“wired” university in East Africa

Impacts on Tanzania include:Impacts on Tanzania include:

11 Feb 2010

Immediate impacts of SEACOM: Rwanda in focus

Went operational on Sept 2009Went operational on Sept 2009

““After a full connection to the under After a full connection to the under sea cable [i.e. SEACOM], Rwandatel’s sea cable [i.e. SEACOM], Rwandatel’s internet subscriber base is projected internet subscriber base is projected

to increase by 10% in the first 12 to increase by 10% in the first 12 months” (AllAfrica.com news, Jan 14, months” (AllAfrica.com news, Jan 14,

2010) 2010)

““After signing a contract with After signing a contract with SEACOM connectivity last year, SEACOM connectivity last year,

Rwandatel acquired 155 Mbps of Rwandatel acquired 155 Mbps of capacity….The deal is expected to capacity….The deal is expected to

help Rwandatel consolidate its help Rwandatel consolidate its position as Rwanda’s leading Internet position as Rwanda’s leading Internet Service Provider” (AllAfrica.com news, Service Provider” (AllAfrica.com news,

Jan 14, 2010) Jan 14, 2010)

Impacts on Rwanda include:Impacts on Rwanda include:

12 Feb 2010

Immediate impacts of SEACOM: South Africa

Went operational on 23 July 2009Went operational on 23 July 2009

MTN announced a 50% increase in MTN announced a 50% increase in capacity for certain corporate clients capacity for certain corporate clients

in South Africa while Telkom and in South Africa while Telkom and Mweb also announced similar Mweb also announced similar

increasesincreases

Monthly lease cost for a STM-1 circuit Monthly lease cost for a STM-1 circuit declined by over 50%, from 2.1M ZAR declined by over 50%, from 2.1M ZAR (USD 283,090) per month in 2006 to (USD 283,090) per month in 2006 to 0.8M ZAR (USD107,844) per month 0.8M ZAR (USD107,844) per month

currently. currently.

International bandwidth supply International bandwidth supply increase of 700%increase of 700%

Impacts on South Africa include:Impacts on South Africa include:

13 Feb 2010

SEACOM way forward

SEACOM’s strategy going forward will be to continue to pursue various business areas in order to fulfill Africa’s unmet broadband needs

Removing national and international infrastructure

bottlenecks

Facilitating research & education through

discounted bandwidth

Supporting the east and southern African economic

growth by significantly lowering communications

costs

Addressing the needs of bandwidth hungry African economies

A commercial dynamic is engaged

Broadband demand is not going to taper out….it is going to continue on this curve

The full value chain will be opened up allowing for low cost access right from the international long haul to the last mile to all Internet Service Providers

There will be significant M&A activity as more services get bundled in the quest to customize solutions and minimize churn

SEACOM is committed to share this journey…

14 Feb 2010

Thank You