Interoutein the Caspian region – what's new

Istanbul, April 19, 2012

Ljubica Draskic, Regional Director CEE

Unparalleled network reach across Europe…..- still the same

And beyond…

2010 2011

Interoute makes profitability

Interoute named WCA Best Regional Operator

Interoute acquire KPN’s Dark Fibre network in Germany

Interoute selected to be Telefonica’s European network

Interoute acquires Visual Conference Group, adding Video Conferencing to the Interoute Unified Communications portfolio

Interoute acquires Quantix Cloud services application management provider.

Interoute awarded the Frost and Sullivan Best European Unified Communications Provider

NEW

Our customers – more added

Retailers

Financial Services

Service Industry

Government & Government Channels

Service Providers

Industrials

Gaining recognition - continues Best Regional Operator

Best Wholesale Innovation

2011

Interoute’s Unified ICT approach delivering Interoute as a Service

6

Interoute as a Service means making the Cloud work for EuropeThe physical network, Europe’s largest, provides secure private connectivity to enable Infrastructure as a Service (IaaS). Pay as you grow becomes the norm. Computing, Applications and Data are centrally stored. The Portal (Interoute’s Hub) becomes the window to a customer’s IT infrastructure.

UNIFIEDCONNECTIVITYCommon consistent connectivity for all enterprise consumers including mobile, office and data centre based.

•Private cloud services•Integrated security•Public network access

UNIFIED COMPUTING Access to a virtualised, geographically dispersed hosting resource available at the click of a mouse

• Order, fulfil, pay online• Virtual and dedicated

servers • Storage and backup• Disaster Recovery and

Global Load balancing• Application

Management & Professional services

UNIFIED COMMUNICATIONPredictable closed, extended and global community communication for any media

• Voice• Video• Audio conferencing• Hosted PBX• Partitioned switches

UNIFIED TRANSPORT• Packet based network transport• Wavelength, SDH• Network Outsourcing• Optical Private Networks (OPN)• Service Provider Bandwidth

CORE NETWORK SERVICESEurope’s duct and fibre resource, to provide the building blocks for private networks and Clouds.

For Service ProvidersFor Enterprise Customers

Video As A Service (VaaS) - NEW

Meeting Solution

Personal

Meeting Room

Telepresence

Care Package

Care

Care 7-21

Care 24/7

ConnectPackage

Entry

MiXS

Premium

Analyzer Package

Analyzer

Analyzer PRO

Analyzer for CauseFindr

VideoCoach

QuickStart

Boost

Video Promotion

VCG Complete Package

Basic Meeting Solutions

ENTRY

PREMIUM

Meeting SolutionsPersonal Meeting Room

VendorMeeting Room

VCGTelePresence

S Movi S Profile 42” S 1 x 46”2 x 46”

S VCG TP 4 – 60”

M EX 60 M Profile 52” M 1 x 52” 2 x 52”

M VCG TP 6 – 60”

L EX 90 L Profile Dual 52” L 1 x 60” 2 x 60”

L Cisco T3 – 3 x 65”

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• Modern development trends in the Caspian region’s inter-operator market

The “old” model, based on voice trading, is gone, where each carrier had bilateral agreements with all neighboring countries was a lucrative market, no competition, prices regulated.The appearance of mobile carriers, the explosion of mobile data, broadband customers, services for enterprises, have totally changed the model. Everything is or will become IP, you exchange packets, no more minutes. So is becoming essential the services you can provide, the resilience of the network, the type of customers you have, the content that the users can generate. Prices are no more regulated, you need to be connected with everyone else, the concept of proximity looses any meaning, it is more likely that a Facebook user is connected to another Facebook user located in another continent than in the closer country.

What means for any carrier: voice importance is decreasing, data is booming, you need to have an effective IP network reaching with high bandwidth the key peering points. The model changes: from 1:1 to 1 to any   Overland and submarine cable lines: who will win?Both, terrestrial and submarine links must be seen in conjunction, not in opposition. The winning solution is the integration: lower latency, faster deployment for submarine, higher capacity, capillarity, faster repair times for terrestrial

Q&A

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• Transit traffic between Europe and Asia: how operators in the Caspian region can become involvedThere is the general consensus that the route Europe to Asia is the most important in the world, the big majority of the traffic today is flowing through submarine cables, Middle East, Red Sea, Egypt, Mediterranean Sea. Terrestrial routes or combination of submarine and terrestrial have been announced and some are already active. The Caspian region can play an active role provided that there is a regional approach, not different country by country.

The suggestion from an alternative carrier like Interoute, that has built in two years a 30.000 km network in western Europe, is that a group of carriers (to nominate the countries…) offer a single stop solution, ready to integrate their network platforms, offering a single SLA and/or offering schemes of revenues sharing. Content Delivery Networks: a new point of leverage for fixed-line providers

It is true, but you can expect to have CDN nodes if and when the market is really open, regulators bodies set clear rules, fiscal laws are clear and competitive, and you have affordable transit capacity!

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Data processing centers and Cloud Computing: new business catalysts for fixed-line operators

These are the killer applications for the development of the transit market in any greenfield region.Data centers have however two major requirements: competitive cost of energy and availability of skilled technical human resources, so this development is related to a strategic decision of the single country in the energy and education sectors. For cloud computing, carriers can act only as enablers, offering to the Service Providers favorable conditions, keeping in mind that there will be a trade-off between cost and performance. What is sure, is that the more sophisticated users will pretend to have, from their cloud computing suppliers, the same level of service wherever they are, in the heart of Silicon valley as well as in the middle of the Caspian region. Development strategies for fixed-line operators in light of the entry of new players to the market – primarily mobile operatorsIt is not really a question for us, but the message we can give is that mobile carriers are offering tariffs to their roaming customers that also for data are not so different from the domestic ones, so the suggestion to the fixed-line operators is to increase the revenues through an increase of the traffic, not keeping high te cost per Megabyte. To this extent, it is needed a hard work on the optimization of the platforms, go to MPLS as soon as you can, if not already done….  

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Traffic growth with stable revenue: what an operator must do

Decrease the cost, optimize the platforms, automatize the process. What is important is the margin, much more than the revenues.

Managed services and outsourcing: is there a place for them in the business of fixed-line operators?

Of course yes, mainly for carriers are relatively small and cannot reach the critical mass. Platforms are expensive, and the operational costs are high to guarantee 24/7 with adequate SLA.In addition, time to market is essential, so a two steps approach is recommended: start with outsourcing and then, eventually, do by your own