new route - «baltic highway»
DESCRIPTION
Baltic Highway is a superior fiber-optic infrastructure that will allow the transmission of data from Russia and Asia via the Baltic States, Poland, and Germany at n*10 Gbps data rates. In order to ensure high-quality data transmission at high data rates, the most up-to-date and widely applied technology DWDM is used.TRANSCRIPT
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
«Baltic Highway»
Opening Event, Riga
September 26, 2012
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
New route - «Baltic Highway»
Juris GULBIS
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
Benefits of the Project for Latvia and Baltics
Juris GULBIS
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
«Baltic Highway» benefits for Latvia
Juris GULBIS
Source: Akamai,1Q,2012
Broadband Internet market
Residential Business
Lattelecom
share44%
Latvia 64%
Lattelecom
share63%
Latvia 85%
Broadband Internet speed
• Increased access speed to International web-based content.
• Infrastructure to develop Internet based e-services in East and West directions.
Source: Lattelecom
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
«Baltic Highway» benefits for Baltics
• To facilitate more than half of growing Lattelecom Internet traffic
• Enables to participate in Internet transit service connecting Russia, Asia, and Europe
Lattelecom International Internet traffic by routes (forecast)
Traffic via MegaFon 28%
Traffic via Deutsche Telekom 36%
Lattelecom International Internet traffic (GBps)
2007 2008 2009 2010 2011 2012
5 1226
46
96
129
Juris GULBIS
Traffic via other routes 36%
Sou
rce:
Lattelecom
Sou
rce:
Lattelecom
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
Role and Benefits of the Project for Western Europe and USA
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)Holger MAGNUSSEN
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
Deutsche Telekom – profile.
Holger MAGNUSSEN
Customers & markets
Customers 130 m mobile
customers 33 m fixed-line
customers/17 m broadband customers
4.6 m (IP) TV customers
About 2 m workstation systems marketed
Markets Presence in 50 countries Germany,
Europe, USA: with own infrastructure
T-Systems: global presence & alliances via partners
Facts & figures
Telekom in figures 2011 Revenue EUR 58.7 bn Adjusted Ebitda
EUR 18.7 bn Free cash flow
EUR 6.4 bn Among the top 100
companies worldwide (#75 in 2011 Fortune 500 list)
Employees & responsibility Employees worldwide:
233,000 9,000 trainees and
cooperative degree students in Germany
Pioneer of social issues (promotion of women, data privacy, climate protection, etc.)
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
Products & services.
Holger MAGNUSSEN
Partner services & platforms
Partner for infrastructure access and network services
Platforms & co-operation projects for innovative services
Business customers
Information & communications technology solutions (ICT)
Outsourcing & cloud services Intelligent networks for
Health, Automotive and Energy
Consumers
Modern mobile &broadband experience
Television Online services Cloud solutions
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
Trends & technologies.
Holger MAGNUSSEN
Roll-out of networks worldwide
Network security becoming more relevant
Source: Symantec Report 2011
Investments worldwide (per Year)
USD 175 bnInvestments in Europe(per year)
USD 65 bn
Direct damage caused by cyber crime 2011 (worldwide)
EUR 85.2 bnTotal volume cyber crime incl. countermeasures
2011 (global)
EUR 290 bn
Source: OECD 2011
Mobile internet booming
Growth with global trend Cloud
2010 2015
950 m
1.890 millionUsers worldwide
currently
1.8 Zettabytesof data volume worldwide
+33%(per year)
Source: MorganStanley/Nielsen
Source: IDC, DTAG
2016
Turnover Worldwide EUR 114 bn
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
Deutsche Telekom – transformation.
Holger MAGNUSSEN
Transformation
Mobile internet & highspeed networks Exponential data traffic growth Network and IT-security Gigabit society
Trends & technologies
Defend/improve market position in core markets
Increase efficiency Develop innovative services & new
business models Expand customer service
Challenges Deutsche Telekom
Traditional telecommunication markets decline
Extreme competition & declining prices Strong influence of regulation &
political broadband targets High investments in modern networks
Industry & markets
From a state-owned telecommunications
company to a service provider:
My First Choice for Connected Life and
Workfor customers
Transformation
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)Holger MAGNUSSEN
Deutsche TelekomInternational Carrier Sales & Solutions (ICSS).
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
Bridge for Western Europeto Baltic states, Russia and Asia.
Holger MAGNUSSEN
• Baltic Highway provides a robust, high-capacity and low latency bridge to Baltic states, Russia and Asia supported by reliable partners.
• These factors are critical for financial institutions, wholesale carriers or large corporate customers from WE and US for their transactional environments and disaster recovery solutions.
Source: TeleGeography
20092010
20112012
20132014
20152016
20172018
0
5,000
10,000
15,000
20,000
25,000 Capacity Europe-Asia
Total Used Capacity …for Internet …for switched voice …for private networks
Gbps
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
Extended Accessto Baltic & Russian markets.
Deutsche Telekom & Affiliates• Deutsche Telekom ICSS offers
services to the carrier and corporate segments in Baltic countries and Russia.
• New DWDM infrastructure and established partnerships will enable Deutsche Telekom ICSS to offer additional flexibility and new services in the markets covered by Baltic Highway.
Holger MAGNUSSEN
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
Baltic Highway - New opportunities for Russian and Asian markets
Svetlana SMIRNOVA
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)Svetlana SMIRNOVA
83
The highest net income among Russian mobile Big-3 The highest revenue from mobile data transmission in Russia The highest investing rating in Russian Telco market (Baa3, Moody`s)
Full coverage of All Russian regions
63,99 Million subscribers
75%of Russian population live on the territory, covered by Megafon’s 3G network
13% Revenue growth in 2011
About MegaFon in brief
5,85 6,06 7,18 8,09
Revenue, $ bln
5,85
2008
6,06
2009
+ 11%
7,18
2010
8,09
2011
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)Svetlana SMIRNOVA
MegaFon`s business markets in Russia
Residential clients
Wholesale business
Governmental agencies
Enterprise business
• #2 in mobile overall• #1 in mobile data• 28% total mobile revenue market share
• #3 in mobile• 9% overall revenue market share
• #2 operator overall• 8% overall revenue market share
• #3 in IP connectivity• #3 in Data transmission services• 17% overall revenue market share
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)Svetlana SMIRNOVA
MegaFon in Baltic Highway Project
Possibility to connect telco services in Russia and CIS based on MegaFon`s and it`s partners` networks
Direct routes to Moscow and St. Petersburg with minimum latency
“Ring” back up for each route
Riga
Saint Petersburg
Moscow
Smolensk
Pskov
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)Svetlana SMIRNOVA
2011 2012
+ 40%
2013 2014
IP traffic growth rate in Russia
2011 2012
+ 5%
2013 2014
Multinational companies market growth rate in Russia
«Baltic Highway». Benefits for Russia
New level of internet access quality (less signal response time) based on the shortest route
More possibilities for latency critical corporate services for international companies with offices in Russia and Europe
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)Svetlana SMIRNOVA
«Baltic Highway» responds to Europe – Asian Market demand
2011
2016
2012
+ 25%
2013
Europe – Asia traffic volume growth rate Europe – Asia Traffic traffic distribution
2014 2015
Europe-Asia leased bandwidth will triple by the end of 2016 up to 1,5 Tbps
The terrestrial route through Russia are getting more demanded. By 2016 its share in Euro-Asian traffic will double
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)Svetlana SMIRNOVA
«Baltic Highway» in DREAM project
High quality alternative to existing terrestrial routes
Significant decrease of latency in the European part of Eurasian transit
Completed Nx10G capacity for fast growing traffic volume between Europe and Asia
Moscow
Riga
DREAM North Route
DREAM South RouteFrankfurt
”Baltic Highway” – potential additional route to Frankfurt in DREAM”
«Lattelecom» (Latvia)«Deutsche Telekom» (Germany) «MegaFon» (Russia)
Thank You!