International Bandwidth Trends Internet2 – ITF Meeting April 24,2006 Peter Barletto Sylvie LaPerrière

Toward optical cable build-out madness  The internet tsunami takes everybody by surprise.  The magic potion of DWDM : by the year 2000, cables of 1000 times the capacity of previous generation were being installed.  Deregulation, easy access to capital, advances in laser and fiber technology, early players gain high valuations and spectacular internet growth creates a new generation of global cable builders: Global Crossing, Level3, FLAG, 360networks, Tyco and results in a cornucopia of transmission capacity.  Internet folly: myth that traffic will double every 90 days forever.  Capacity prices plummet: Trepidation  Capacity providers go under

The big build out of the early 2000’s  Starting shot was given by Atlantic Crossing (AC1) which came on-line in May 1998 and TPC-5 on the Pacific side in December 98.  Level3, Global Crossing, FLAG, 360, TGN networks emerged as the major new generation cable builders.  The final achievements were the terabit level C&W TransAtlantic cable and the Tyco TransPacific cable; both came on line early  The Atlantic has 4 terabit level cables, the Pacific one  A trinity of East-Asia terabit level cables : EAC, C2C and APCN2 and a North Asia terabit loop: FNAL/RNAL

Could there be some oversupply? Very few cable builds likely for the rest of the decade, less willingness to expand lit capacity before demand The gap between lit and design capacity

Lit capacity versus demand  Cost to activate all major unlit capacity is high:  transatlantic capacity (9.6Tb) is estimated at $3.5 bilion and $3.9 billion transpacific (7.9Tb) and $12 billion intra Asia (15.6Tb). (source: Telegeography 2005)  Some additional lit capacity likely needed in  Better equilibrium between supply and demand

Predictions and forecasts revisited  What will fill the capacity and how fast?  Current (2005) transatlantic: voice: 13.3Gb internet 773.2Gb; other (IPL etc): 62.5Gb  TeleGeography predicts for end 2007: a slow growth scenario of 1,570Gb a fast growth scenario of 1,955Gb  This still leaves ample capacity but who would dare this time around to predict it will take 17 years to fill the cable?  Internet represents approx 85% of all transoceanic capacity use and has seen renewed growth (32% in 2004, 52% estimate for 2005).  How fast will internet traffic soak-up excess? Any new international bandwidth hungry internet applications in sight?  Bandwidth prices still keep dropping but at a slower rate—is price stability coming?

Toward gigabit connectivity  First transatlantic gigabit level circuit :  2001: 2.5 gig SURFnet to Chicago Starlight  First transpacific STM-4’s  2001: two Transpac STM-4’s  2002: first transatlantic 10gb  Surfnet leads again  The big R&E scare of 2002:  KPNQwest disappears, Teleglobe reorganizes  Global Crossing, L3 and Tyco become major lambda providers

Continued Technological and Deployment Progress  40G technology coming (?),  Router Ports exist - $$  Terrestrial DWDM available but - $$  Subsea possible but final development, impact to ultimate capacity, and costs are issues.  More options on interfaces in undersea equipment (GigE, 10GigE)  Interest in filling in gaps in undersea footprint, prices still high in some parts of the world.  Suppliers becoming more customer and cost focused

Global Network

Dual stack IPv4 and IPv6 access on 21 access nodes in 15 countries (March 2006)

Network Reach | Leveraging Major Infrastructure Ownership  100% owner in 3 cable systems (Trans-Atlantic, Trans-Pacific, Singapore-Chennai)  Leading investor in another 3 cable systems (Sat3/Safe, SMW3 and SMW4)  206,356 km of global connectivity  Trans-Atlantic and Trans-Pacific data transfer capacity of 1 trillion bits per second  SDH & SONET to support IP, ATM, Gigabit Ethernet  Diverse redundancy and protection capabilities  Greatest diversity to, and within, India.

VSNL India Footprint | Diverse Connectivity to and from India  Comprehensive Cable Redundancy  Capacity on all cables coming into India  Tata Indicom Cable  100% VSNL Owned and Operated  SMW4  Network Administrator  One of the largest Investors  Ring Architecture for redundancy  Most vibrant domestic network in India  NLD Backbone  40,000 Route Km covering 300 major cities  Pan India Coverage with dual line maintenance

Major Cable Investments | Tata Indicom Cable (TIC)  Newest and Highest Capacity Cable System into India (320 GBPs)  Offers Hardware and Wavelength Protection on Wet Segment  Deep Shore-end Burial  Ring-Protected Backhaul in Singapore  Leading SLAs for Service Availability  Linked Directly to VSNL’s Redundant Network in India  Onward Connectivity from Singapore to Hong Kong, Tokyo, and USA

Los Angeles (x2) Seattle Portland Hillsboro (x2) To Tokyo New York (x2) Miami Wall Twp (x2) To London Trans-America | Network Capacity Santa Clara (x2)  City-to-City Connectivity to:  New York City (multiple locations)  Los Angeles  Santa Clara  Portland  Seattle  Miami  Full Range of Service Offerings including:  DS-3, STM-1 through STM-64  Wavelength Services  Fiber Plans  Ethernet Services

London (x2) Paris Amsterdam Groningen Frankfurt (x2) Hunmanby Highbridge (x2) Madrid Lisbon Bilbao European | Network Capacity To New York  European Ring  Supports > 64 10Gb/s waves per fiber pair  City-to-City Connectivity to:  London  Paris  Amsterdam  Frankfurt  Groningen  Full Range of Service Offerings including:  DS-3, STM-1 through STM-64  Wavelength Services  Fiber Pairs  Ethernet Services

SMW- 4 | Asia to Europe ALCATEL FUJITSU ALCATEL AND FUJITSU 1 34  VSNL Network Administrator  16-member Consortium  Hosts Mumbai-based network operating center  1.28 Tera bits per second design capacity  connecting 3 continents over 20,000km  Initially equipped with 160 Giga bits bandwidth (DWDM technology)  640 Gigabits matrix Digital Cross Connect in every station 2 Segments

 8 Fiber Pairs Cable  Supports 96 10Gb/s waves per fiber pair Hillsboro (x2) Los Angeles (x2) Seattle Portland Tokyo (x2) Emi Toyohashi Guam Trans-Pacific | Network Capacity Maruyama Santa Clara (x2) To New York  8 Fiber Pairs Per Cable Ring  Supports 64 10Gb/s waves per fiber pair  City-to-City Connectivity to:  Portland  Seattle  Los Angeles  Santa Clara  Tokyo  Full Range of Service Offerings including:  DS-3, STM-1 through STM-64  Wavelength Services  Fiber Plans  Ethernet Services  8 Fiber Pairs Cable  Supports 96 10Gb/s waves per fiber pair

Japan & Pacific Region | Interconnectivity  Regional Network Interconnectivity  FLAG North Asia Loop (FNAL)  Reach North Asia Loop (RNAL)  FLAG Eur-Asia  C2C Cable Network  Asia Netcom (ANC)  APCN-2  Australia Japan Cable (AJC)  Japan Interconnectivity  Powered Com (PWD)  NTT-E  NTT-C  KVH  Tepco TGN On-Net Locations TGN Interconnect Points

C2C| Fiber Pair  Single Fiber Pair in 8-pair system  On “Main Ring”  960 Gbps of ultimate capacity

Company Overview

The new VSNL International  Two complementary acquisitions …  November 1 st 2004: VSNL India announces purchase of Tyco Communication assets; July 1 st 2005: deal completed  July 25 th 2005 : VSNL announces purchase of Teleglobe; February 14 th 2006: deal completed.  … give VSNL international unparallelled capabilities  Today TGN represents about 36% of lit TransPacific capacity (73% of design capacity) and 20% of both lit and design capacity under the Atlantic  Teleglobe brings a global IP network, a global voice network, TDM and VoIP with 13 billion of voice traffic and global roaming  VSNL International is a leader in EoS (Ethernet over Sonet)

VSNL International | Tata Group Financial Stability & IT Capabilities Tata Group  125-year old largest private sector group  $17.8 billion in revenues  Acquired VSNL in February 2002  Tata Consultancy Services (TCS)  Asia’s largest software & systems integration services company  33 countries across 5 continents  Key player in high-growth international markets

VSNL International | Integrating Key Assets VSNL  India’s #1 Communications Group  Leading provider of International Telecommunications and Internet Services  Largest Enterprise, Wholesale and Retail Broadband services footprint  800,000 strong Internet subscriber base VSNL International  Global presence with operations the US, Europe & Asia  All customer segments, encompassing wholesale and corporate.  Presence in voice, data and mobile services markets TGN  60,000 kilometers of global sub-sea connectivity spanning 3 continents  Bandwidth at all STM/OC levels  Reliable, scaleable and fully redundant Teleglobe  Leading international wholesale voice, data & mobile provider  Over 1400 wholesale customers & 13 billion minutes  100 Gbps connectivity in nearly 80 cable systems  Reach to 240 countries/territories  250 direct and bilateral relationships  Major supplier of voice, internet traffic and signaling conversion  Wholesale services to over 350 mobile operators

Our Strategy | The Building Blocks  17 billion minutes of international voice traffic  415 bilateral agreements  ITFS in over 80 countries  Ownership in 100+ sub sea and terrestrial cable systems  7.68 Terabit system across Trans-Pacific, Trans-Atlantic, Intra-Europe  5.12 Terabit system between Singapore and India  Tier 1 ISP with 67 PoPs in 21 countries  Domestic India network with 37,000km of fiber network  122 PoPs of MPLS core backbone in India  300,000 buildings On-net in India  30 major Indian cities on Ethernet MAN network  IP backbone of 10 gigabits  39 Data centers and co-location facilities across the world  Over 350 mobile customers connected for global roaming

Integrated Network Strategy I Next-Generation Capabilities IP based core network built on owned infrastructure Partnerships and ecosystem Content partners IMS MPLS-NNI using service mediation technology Voice peering IT Infrastructure Services  Hosting  Storage  DR/BC + + Network Related Managed Services  N/W Management  Security Embedded applications for collaboration, security and communication Next Generation Network Capabilities =

Wholesale Data

Wholesale Data | Global Strengths  Tier 1 Global Network  Extensive ownership in over 100 sub-sea and terrestrial cable systems  Scalable bandwidth solutions with effective cost management  Synergy between Teleglobe network infrastructure and scalability of TGN routes  Global Tier 1 ISP with 67 worldwide PoPs in 21 countries  Global IP backbone AS 6453 connected to more than 90 countries  IPv6 leader  Market leader in satellite-based IP services  Diversely routed 10 Gbps and 2.5 Gbps wavelengths or resilient self-healing SONET/SDH ring infrastructure  Connects ISP and content providers through more than 120G of peering and 400G of customer connectivity worldwide.  Greater reach and on-net capacity (EMEA-Africa)  Enhanced service capabilities for hosted applications and managed offerings

Wholesale Data | Key IP Services Strengths  Tier 1 international network focused on services for carriers / ISPS  67 Pops - 60% Outside North America  435 Customers - 69% of Revenue Outside North America  1 AS Number, 1 Operating Center - Reputation for Excellent QoS  435-strong stable customer base  Expansive satellite capability to the developing world  Providing primary or back up service to key growth regions  Unparalleled global reach and local peering  Kuala Lumpur, Manila, Cairo, Riyadh, Sydney, Hong Kong  Middle East IX (MEIX), Egypt IX (EIX) Unique to ASN  Benefit from significant traffic share in several geographies  Canada, India, Spain, France, Middle East, Parts of Asia, Africa  Balanced International Content and Eyeballs  India traffic to enhance global balance  Unique peer-to-peer communities  Strongly positioned as content becomes more regional  Many customers in high growth regions  Unique eyeballs  Tier 1 peering relationships

Wholesale Data | AS6453 Highlights  Single Global AS  Provides superior connectivity between Middle East and Asia, Europe and Asia and North America and Middle East  Industry Competitive SLAs  Excellent round trip delay (RTD), 0% pack loss, 100% reach  Private Peering With All Tier 1 Carriers  More than 70 Peering Arrangements  67 Internet PoPs in 21 countries Worldwide

Wholesale Data | Key IPL Services Strengths  Global Transmission Services  Fiber (special service )  Wavelength Services  Private Line Services  Half Circuit Services  Largest owned infrastructure and capacities across the Pacific, Atlantic, Intra Europe and Asia  SEA ME WE 4 Network Administrators and Full Circuit Availability  Ability to provision high bandwidth in short time frames  Round the World Global coverage  Diverse and Redundant routes and service options available  Unprotected (largely TGN network or single-leg consortium cables)  Restored  Protected  Premium Protected

Wholesale Voice | Global Strengths  Global Reach  # 1 wholesale international voice player with combined volume of 17b minutes  Over 350 direct and bilateral relations with leading voice operators  Largest wholesale international footprint  Hundreds of carrier interconnects provide us with diverse routing, lowest possible costs  Full global coverage enhanced with India-route strengths  Enhanced quality, stability, competitiveness  Value-Add  Global paradigm of exceptional commercial flexibility  Teleglobe systems and tools leveraged across full India portfolio  Customers benefit from faster time to market and lower costs  Automated, adaptive BestValue RoutingTM enables us to offer multiple service levels with robust quality, aggressive prices, & continuous optimization with lower SG&A

Mobile | Global Strengths  Global Leadership  Market leading position with more than 350 GSM operators worldwide  Mobile operators are supported with the Company’s global signaling network, enhanced roaming services, managed mobile content services, and global voice termination  World signaling conversion leadership with Wireless Global Roaming (WGR)  “Translates” between signaling network standards in North America (ANSI) and the rest of the world (ITU)  Comprehensive Services Portfolio  Enhanced full signaling range and scale from Americas/Europe to include Asia signaling anchor  Basic Signaling: to ~400 wireless operators in more than 165 countries.  > 15 billion message signaling units of value-added signaling services  Managed Roaming: Allows operators to assign roaming subscribers to the visited network of their choice  VTS Prime: Mobile call completion with guaranteed caller line identification transport to more than 35 strategic countries  Continuing mission-critical business support  Next-Generation Applications  Additional leading-edge applications offered as a hosted service offering  Push-to-talk on Cellular  IP Multimedia Subsystem(IMS)  International Prepaid Gateway and CAMEL Gateway

Global Teams | Local Support  VSNL Singapore Pte Ltd. No. 5 Shenton Way UIC Building #22-07 Singapore (Fax)  VSNL America, Inc Reston Parkway - Suite 320 Reston, VA USA (Fax)  VSNL Telecommunications (US) Inc. 90 Matawan Rd Suite 101 Matawan, NJ (Fax)  750 College Road East Princeton, NJ (Fax)  Teleglobe Sunset Hills Road Reston, Virginia (Fax)  VSNL Telecommunications (UK), Ltd 5th Floor, Moorgate London, EC2R 6PJ United Kingdom  Suite - 7th Floor 2 Harbour Exchange Square London, E14 9GE, England (Fax)  VSNL Hong Kong Limited 2402 Bank of America Tower 12 Harcourt Road Central Hong Kong (Fax)  Asia-Pacific - Hong Kong 2508 Two Pacific Place 88 Queensway, Hong Kong (Fax)  Teleglobe 1555 Rue Carrie-Derick Montreal (Québec) Canada, H3C 6W (Fax)  VSNL India Headquarters Lokmanya Videsh Sanchar Bhavan Kashinath Dhuru Marg Prabhadevi, Mumbai India (Fax)

Thank You!