Digital Content & IP Transit Growth

Konstantin Novikov Wholesale, CIS countries

Caspian Telecoms, Istanbul, Turkey, 24 th April 2014

GLOBAL LOCATION OF DIGITAL CONTENT

Worldwide Datacenter Distribution Total Datacenter Space, mln sq m

Source: www.datacentermap.com

Source: DCD Intelligence  Total datacenter space has reached 31 million sq.m.

 Over 7 million of them is available for commercial lease  Most of digital content is located in USA and Europe  Caspian region will require a good IP connectivity to Europe

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IP TRAFFIC DRIVERS IN CENTRAL & EASTERN EUROPE

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Source: Cisco, 2012  For past five years IP grew 4.6 times in Central & Eastern Europe  Private customers consume over 80% of total IP traffic  Mobile data grow fast, but it is still on enfant stage in traffic volume  Video is the contributor №1 in traffic volume 3

BROADBAND SERVICES IN CIS COUNTRIES

BB Users in the Region, thousand

Source: ITU  Total number of broadband users has reached over 33 million in CIS countries & Georgia  Major markets: Russia, Ukraine, Belorussia, Kazakhstan and Azerbaijan  Economy strength has a strong influence on broadband penetration (by population)

BB Penetration vrs. GDP per Capita

Source: J’son & Partners Consulting

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WIKI AS A MIRROR OF GLOBAL CONTENT LOCATION

Average number of references in all languages in Wikipedia

Source: New Scientist, April 2013

Russia is among major “sources” of digital content in the Internet Eurasia Highway

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BROADBAND SERVICES IN RUSSIA

Russia: MB per Minute for Internet Video

High-Definition Video Standard-Definition Video Short-Form Video

2009 2010 2011 2012 2013

11 6 3 13 6 3 14 7 3 16 7 4 18 8 5 Source: Cisco Source: IKS Consulting  Penetration of broadband services will reach ~58% of total households that is closed to top limit  While number of broadband subscribers is going to saturation, a “heavy” video supports total traffic growth  As a result telecom carriers have to transit more and more IP traffic

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IP TRANSIT VIA RUSSIA

Datacenter Space Distribution in Russia

Source: TeleGeography Moscow St.-Petersburg Others Source: J’son & Partners Consulting     IP transit demand is fast growing segment, CAGR 80% in 2009 - 2013 Russia generates 65% of total international IP uplinks in CIS ~ 50% of CIS countries uplinks (excluding Russia) go through Russia Commercial datacenter space exceeds 100 thousand sq m in Russia

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TTK AT GLANCE

    

Largest Fiber-Optic Backbone in Russia

length — 75 000 km transmission capacity — up to 3200 Gbps over 1000 access nodes in 78 Russian regions 20 cross-border interconnections telecom bridge between Europe & Asia     

Comprehensive Telecom Solutions

layout of enterprise networks based on advanced technologies full spectrum of fixed voice services network security & monitoring building of telecom infrastructure wholesale services  

Own Access Infrastructure

local access networks in more than 180 Russian cities international gateways in London, Frankfurt, Amsterdam, Stockholm, Hong Kong, Tokyo

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  

Guaranteed Quality

certified services information security SLA 8

MARKET POSITIONS

Europe – Asia Transit (via Russia)

Market Share in the Russian Market

Telecom Carrier Non-Voice Services Enterprise Networks Enterprise Long-Distance Voice Services Source: Direct Info, 2013

TTK is fifth largest telecom operator in Russia - CNews Analytics 2013 Eurasia Highway

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TTK BACKBONE Eurasia Highway

       Transmission Capacity (ULH DWDM) —

up to 9 Tbps

Multiple ring topology & high service availability –

up to 0.9995

Automatic restoration switch for redundant services <

55 ms

Service restoration time

< 4 hours

Maintenance team - every

200 km

22 international gateways:

Finland, Estonia, Lithuania, Latvia, Poland, Belarus, Ukraine, Azerbaijan, Kazakhstan, Mongolia, China, North Korea, Japan

International nodes:

London, Stockholm, Amsterdam, Frankfurt, Hong Kong, Tokyo Eurasia Highway

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TTK CAPABILITIES

TTK Transit Capabilities (Central Russia), Gbps 4500 4000 3500 3000 2500 2000 1500 1000 500 0

> 4 Tbps

2009 2010 2011 2012 2013

 Today TTK offers both IP transit and clear channels from the Russian border to major European destinations:  London  Amsterdam  Frankfurt  Stockholm    Hong Kong Tokyo Capacity – up to 10GE or 10G  Total transit TTK capabilities are exceeded 4 Tbps in Central Russia due to implementation of 10&40G&100G DWDM systems and development 10GE IP MPLS

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Thank you for attention!

8 Testovskaya St., Moscow, RUSSIA tel.: +7 (495) 784-66-70 fax: +7 (495) 784-66-71 www.ttk.ru

email: [email protected]

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