1 T E N E T Update on TENET Duncan Martin CEO: TENET iWeek September 2010

2 T E N E T What is TENET? Non-profit (Section 21 company) Operates the South African NREN –Currently: 96 campuses of 46 institutions –Some remote campuses serviced by Telkom Recovers costs from institutions –Around R130m per year –No donations or government grants Member of ISPA –Settlement-free peering at CINX and JINX

3 T E N E T International b/w cost to institutions Start DatePlatform Charge per Mbps Bandwidth ratio Satellite R 52, SAT-3 R 60, SAT-3 R 21, SAT-3 R 20, SAT-3 R 21, SAT-3 R 15, SAT-3 R 14, SAT-3 R 13,3751, SEACOM R 1,

4 T E N E T International b/w history Quarter Mbps ordered by institutions 2008 Q Q Q Q Q Q Q Q Q Q36000 ?

5 T E N E T This is thanks to… UbuntuNet’s formation and London ops SEACOM’s special 10 Gbps deal for TENET DST’s SANReN backbone deployment ICASA’s issuing of ECNS and ECS licenses –Following Altech Autopage Cellular’s celebrated court cases However: high capacity backhaul still has to reach many campuses

6 T E N E T What is UbuntuNet?

7 T E N E T UbuntuNet Alliance for Research and Education Networking The regional REN in eastern and southern Africa Non-profit association Head office in Lilongwe, Malawi Incorporated in 2006 in the Netherlands Now also incorporating in Malawi

8 T E N E T UbuntuNet Members DRC EthERNet, Ethiopia KENET, Kenya MAREN, Malawi MoRENet, Mozambique RwEdNet, Rwanda SomaliREN, Somalia SUIN, Sudan TENET, South Africa TERNET, Tanzania RENU, Uganda ZAMREN, Zambia

9 T E N E T UbuntuNet’s London PoP Located in Telecity, London –since March 2008 Member NRENs connect to the POP UbuntuNet interconnects with –Géant (The European regional REN) –More than 300 peers at the London Internet Exchange (LINX) –Transit purchased from NTT TENET operates the PoP for UbuntuNet

10 T E N E T What is SANReN?

11 T E N E T South African National Research Network –DST funds capital cost –CSIR (Meraka) contracts with suppliers and “owns” it –TENET operates it –Institutions bear operating costs 10 Gb/s Backbone ring –Commissioned 1 Dec 2009 –Extensions planned to remote PoPs Metropolitan access networks: –Johannesburg –Soon in Cape Town, Durban, Pretoria PTA JNB BFN CPT PE DBN EL

12 T E N E T TENET’s SEACOM deal

13 T E N E T Mid 2007 Current Telkom contract nearing its end Change is in the air… –Electronic Communications Act replaces Telecoms Act –2 nd network operator licensed (Neotel); ISPs gearing up –UbuntuNet Alliance establishes London hub –Government envisages deploying national research network TENET decides to –acquire engineering and service management capacity –operate its own routing infrastructure –call for tenders for underlying network capacity –Interconnect internationally via UbuntuNet

14 T E N E T Sept 2007 SEACOM offers TENET 10 Gb/s circuit between Johannesburg and Sicily Indefeasible Right of Use for 20 years Commissioning planned for June 2009 –20 months away $23 million, payable upon commissioning Annual O & M charge of 3%.

15 T E N E T How do we find $23 million? Tried to raise loans from bigger universities –Complete failure Idea: Exploit the recurring bandwidth budgets! –$5.8 million p.a. being spent on international b/w –Can we pay for the IRU over 6 years? SEACOM says OK! –Option to pay in 6 equal annual payments –14% p.a. financing charge SEACOM asks: What guarantees can TENET provide?

16 T E N E T Oct 2007 TENET calls for “SEACOM CIR Bids” –Invitation to all institutions –Hey Mr. IT Director! How many “SEACOM Bid Units” would you like? Each “Bid Unit” entailed –Preferential ordering rights for 10 Mb/s on SEACOM –Obligation to pay six annual amounts of $7,000 –(Works out at < $60 per Mb/s per month) TENET obliged to repay in services or cash Breakeven point: 750 Units

17 T E N E T Outcome of Bid Process A NO-BRAINER! –950 CIR Units bid –$29 million committed by 27 institutions

18 T E N E T Final contract SEACOM accepted the 27 Bids as sufficient guarantee Meanwhile negotiations continued… –Endpoints: Mtunzini and Telecity, London –Price: Drops to $20 million Capacity Purchase Agreement signed on 2 November 2007

19 T E N E T Later (just before commissioning) Loan from the DBSA Development Bank of Southern Africa grants TENET loan of R154 million (equivalent to $20m). DBSA also accepted the 27 Bids as sufficient guarantee. Loan enabled TENET to fully pay SEACOM. Institutions’ annual obligations converted from US dollars to SA Rand.

20 T E N E T The advent of dark fibre 1 st Mtunzini Backhaul –IRU purchased from Dark Fibre Africa –160 km; 6 dark fibre pairs –3 lambdas in use on one fibre pair –Signal amplification at Umhlanga Rocks –Was ready for SEACOM launch in Jul 2009 TENET had required EC licenses –Just in time –Thanks to Altech Autopage court rulings

21 T E N E T Mtunzini Backhaul PTA JNB BFN CPT PE DBN Mtunzini (landing station) SEACOM cable 1 st Backhaul: DFA EL 2 nd Backhaul: Neotel

22 T E N E T Further dark fibre projects nearing completion UZULU Main Campus (kwaDlangezwa) –30 kms south to Mtunzini UNISA Campus in Florida –Redundant routes to Wits and Rosebank Wits Main - Wits Baragwanath – UJ Soweto –Spur shared by Wits and UJ Monash SA (Roodepoort) –Redundant routes to Wits and Rosebank –Amplification at UNISA Florida

23 T E N E T TENET needs Access networks in –Bloemfontein –East London –Nelspruit –Polokwane –Port Elizabeth –Vanderbijlpark Co-build partners….

24 T E N E T