new challenges for carriers in caspian region

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New Challenges for Carriers in Caspian Region 28th April 2011, Istanbul, Turkey Alexander Stolyarov Deputy of Head, Wholesale Department

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New Challenges for Carriers in Caspian Region. Alexander Stolyarov Deputy of Head, Wholesale Department. 28th April 2011, Istanbul, Turkey. Agenda. I. Telecom market perspectives. 3-4. Major wholesale segments. II. 5-7. TTK & new challenges. III. 8-11. 2. 2. Economy Perspectives. - PowerPoint PPT Presentation

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Page 1: New Challenges for Carriers in Caspian Region

New Challenges for Carriers in Caspian Region

28th April 2011, Istanbul, Turkey

Alexander StolyarovDeputy of Head, Wholesale Department

Page 2: New Challenges for Carriers in Caspian Region

22

Agenda

I Telecom market perspectives 3-4

Major wholesale segmentsII

TTK & new challengesIII

5-7

8-11

Page 3: New Challenges for Carriers in Caspian Region

3

Economy Perspectives

Fast economic development creates the positive future for telecom carriers

CIS & Caspian regions survived the strong impact of economic turbulence in 2008 - 2009 Russian GDP dropped on -7.0% in 2009, while it grew on +4.9% in 2010 All countries will continue stable growth in next five years

Economy Growth in CIS & Caspian Regions,GDP in $billion

Source: International Monetary Fund

0

1000

2000

3000

4000

5000

6000

7000

2008 2009 2010 2011 2012 2013 2014 2015

Russia Turkey Iran Ukraine Kazakhstan Others

Page 4: New Challenges for Carriers in Caspian Region

4

Telecom Markets

Impact of economic crisis was indirect for telecom industry in 2008 - 2009 Development rate of telecom markets decreased, but not stopped in many countries Russian telecom market increased about 10% in 2010

Telecom Markets in CIS & Caspian Regions,$billion

Telecom markets continued the growth in Caspian region in 2010

Sources: Business Monitor, Telecom Administrations

010

203040

506070

8090

2006 2007 2008 2009 2010

Russia Turkey Ukraine Iran Kazakhstan Others

Page 5: New Challenges for Carriers in Caspian Region

Major Market Segments

Source: RosBusiness Consulting 5

Telecom Revenue Structure in Russia Actual change of market structure is not so fast in many countries Voice is still the “King”, including fixed and mobile ones While revenue from fixed voice services is declining Data communications are the fastest growing segment

Voice, data & wholesale transit cover 95% of market revenue

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 2010F

Others

Satellite & radiocommunications

Wholesale transit

Data communications

Mobile communications

Lond-distance telephony

Local telephony

Page 6: New Challenges for Carriers in Caspian Region

International Wholesale Segments

Source: TeleGeography & TTK estimations 6

I. IP Capacity in CIS & Caspian Regions

IP is the major driver for capacity demand Revenue grew 4 times to over $200 million in CIS & Caspian regions Major markets: Russia, Turkey, Ukraine, Kazakhstan Capacity increased 20 times to 1,9 Tbps, while average bandwidth prices decreased 5 times for past 5 years

0,0

0,5

1,0

1,5

2,0

2006 2007 2008 2009 2010

Ca

pa

city

, Tb

ps

0

10

20

30

40

50

60

Ave

rag

e B

an

dw

idth

Pric

e,

$ /

Mb

ps

/ mo

nth

Capacity Average Bandwidth Price

max. $100-150per Mbps

Page 7: New Challenges for Carriers in Caspian Region

International Wholesale Segments

7

II. Voice in CIS & Caspian Regions

Large customer base (2010): main telephone lines > 120 millions mobile subscribers > 470 millions Region absorbs ~ 12 billion minutes of international traffic Incoming traffic essentially prevails outgoing one ~ 30% of outgoing traffic is VoIP

Source: TeleGeography, RCC & TTK estimations

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

2004 2005 2006 2007 2008 2009F 2010F

Outgoing Incoming

International Telecom Traffic,billion minutes

Page 8: New Challenges for Carriers in Caspian Region

Market Challenges

8

Rapid growth of international bandwidth due to increasing demand for IP capacity Relative price per Mbps is still decreasing dramatically Lack of infrastructure and needs for network development in some countries VoIP traffic growth

TTK approach:

Development through technological innovations

Page 9: New Challenges for Carriers in Caspian Region

9

TTK Regional Focus

Major CIS interconnections: Ukraine – 35 Gbps Belorussia – 25 Gbps Kazakhstan – 25 Gbps Azerbaijan – 10 Gbps European IP up-streams 230 Gbps

Page 10: New Challenges for Carriers in Caspian Region

10

Further growth of transit capabilities will be provided by:

10G to 40G migration at main backbone routes Shift of 10G systems to SDH routes with rapidly growing demand Implementation of WDM systems Development 10GE IP MPLS

TTK Transit Capabilities (Central Russia), Gbps

0

200

400

600

800

1000

1200

1400

2006 2007 2008 2009 2010

Growing Capabilities

> 1 Tbps

Page 11: New Challenges for Carriers in Caspian Region

11

TTK Services

DWDM 10G&40G

IP MPLS 10GE

SDH

NGN

IP 10GE

• Long-Distance Telephony

• IP VPN

• EPL

• IP Access

• NPL & IPL

Page 12: New Challenges for Carriers in Caspian Region

8 Testovskaya Str.,

Moscow, Russia, 123317

T: +7 (495) 784 6670

F: +7 (495) 784 6671

E: [email protected]

www.ttk.ru

Thank you for attention!