new challenges for carriers in caspian region
DESCRIPTION
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 PresentationTRANSCRIPT
New Challenges for Carriers in Caspian Region
28th April 2011, Istanbul, Turkey
Alexander StolyarovDeputy of Head, Wholesale Department
22
Agenda
I Telecom market perspectives 3-4
Major wholesale segmentsII
TTK & new challengesIII
5-7
8-11
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 $billion
Source: International Monetary Fund
0
1000
2000
3000
4000
5000
6000
7000
2008 2009 2010 2011 2012 2013 2014 2015
Russia Turkey Iran Ukraine Kazakhstan Others
4
Telecom Markets
Impact of economic crisis was indirect for telecom industry in 2008 - 2009 Development rate of telecom markets decreased, but not stopped in many countries Russian telecom market increased about 10% in 2010
Telecom Markets in CIS & Caspian Regions,$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
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
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
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
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
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
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
11
TTK Services
DWDM 10G&40G
IP MPLS 10GE
SDH
NGN
IP 10GE
• Long-Distance Telephony
• IP VPN
• EPL
• IP Access
• NPL & IPL
8 Testovskaya Str.,
Moscow, Russia, 123317
T: +7 (495) 784 6670
F: +7 (495) 784 6671
www.ttk.ru
Thank you for attention!