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 Africa 10-20% 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 of locations.

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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 regional Internet 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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THANK YOU