1. Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.comwww.telegeography.com Global Internet Capacity and Pricing Trends Alan Mauldin Research Director, TeleGeography Caspian Telecoms – Istanbul April 20, 2012

2. Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.comwww.telegeography.com Operators Are Rapidly Adding New Capacity

3. Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.comwww.telegeography.com Pace of Regional Growth Varies Notes: Data reflect Internet bandwidth connected across international borders including links between countries in each region. Data is the compound annual growth rate between mid-2007 and mid-2011.

4. Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.comwww.telegeography.com How the World Connects

5. Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.comwww.telegeography.com Continued Decentralization

6. Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.comwww.telegeography.com A Broad Range of Prices Exist Notes: Shaded area represents price range between low and high price by individual carrier; line shows median High, Low, Median London GigE IP Transit Prices by Carrier

7. Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.comwww.telegeography.com IP Transit is Not Always Cheap

8. Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.comwww.telegeography.com IP Transit Prices Are Under Pressure, Especially in Asia

9. Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.comwww.telegeography.com Trends in the Caspian/CIS Region Major global backbone operators may expand their IP backbones from Eastern Europe into the Caspian/CIS region, bringing new competition and cheaper prices. The majority of content will continue to be located outside of the region due to more favorable regulatory environments and lower power/space costs in Western Europe. Rich peering and interconnection opportunities in Western Europe will remain a major attraction for carriers — there is no equivalent of DE-CIX or AMSIX in the Caspian/CIS region.

10. Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.comwww.telegeography.com Appetite for Bandwidth Should Remain Strong We are here

11. Carlsbad, CA | Washington, DC | Exeter, UK | Singapore | www.telegeography.com | info@telegeography.comwww.telegeography.com Thank You Alan Mauldin Research Director TeleGeography amauldin@telegeography.com +1 202 470 0135