1. Peering, network sharing, interconnects Eckart Zollner September 2014

2. Internet today: Usage & infrastructure

3. 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%

4. 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

5. What drives the market ?

6. 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

7. 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

8. 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

9. Network strategies and trends

10. 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.

11. 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..

12. 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.

13. 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..

14. THANK YOU