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TASIM Trans Eurasian Super Information Highway Summary Presentation

October 2010. TASIM Trans Eurasian Super Information Highway Summary Presentation. 41%. 34%. 30%. Digital Divide in Eurasia. 11%. 9%. 9%. 6%. 4%. 0%. 0%. Sweden. U.K. Bulgaria. Russia. Georgia. Uzbek. Kyrgyz. Kazakh. Malaysia. S.Korea.

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TASIM Trans Eurasian Super Information Highway Summary Presentation

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  1. October 2010 TASIM Trans Eurasian Super Information Highway Summary Presentation

  2. 41% 34% 30% Digital Divide in Eurasia 11% 9% 9% 6% 4% 0% 0% Sweden U.K Bulgaria Russia Georgia Uzbek. Kyrgyz. Kazakh. Malaysia S.Korea The TASIM initiative was launched in 2008 by the government of Azerbaijan to bridge the Eurasian digital divide TASIM Overview Eurasian Digital Divide and TASIM Country Scope - Broadband Penetration 2009, Subscribers % - • TASIM: Trans Eurasian Super Information Highway • Project launched in 2008 by Government of Azerbaijan • Objective: Bridge the digital divide in Eurasia • Approach: Construct a regional Internet backbone • Significant support at Bakutel 2008 and from the UN General Assembly in 2009 • Status Quo: Preparing implementation and approaching potential network operators to seek partner agreements Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Frame TASIM Idea Generate InternationalBuy-In Develop TASIM Business Model Partner with Network Operators Prepare TASIM Launch 2008 2010 2012 Today Sources: ITU, Booz & Company analysis

  3. TASIM can act as a broker mediating between operators, provide IP transport services or position itself as a service exchange BUSINESS MODELS ARE COMPLEMENTARY TASIM Business Models Details ServiceExchange 3 Business Model Framework ServiceExchange 3 Unified IP Transport Underlying TransportNetwork Unified IP Transport Total Asset Intensity1 2 2 Broker 1 Broker 1 1) For the Service Exchange Business Model including the required underlyingtransport network (which could be provided by a third party)

  4. TASIM may act as a trusted negotiator between operators with different visions, strategies and business styles 1 Broker Business Model: Overview • Objective: Improve regional operators’ contacts by enabling deals between operators, some of them wouldn’t be possible otherwise due to political, geographical or commercial issues • Approach: TASIM’s role is to deploy a smart negotiation approach to become a trusted deal broker for the majority of operators in the region serving as a “enabler” for operator-to-operator deals • Infrastructure: TASIM doesn’t need to own or operate any technical infrastructure. The actual network/service interconnection will be handled by the operators • Optionally TASIM can act as a financial clearing house optimizing payments between operators Operator 1 Operator N Operator 2 negotiates TASIM negotiates Operator 4 Operator 3 Newly established network route - TASIM acted as a mediator between involved operators and therefore enabled construction of the route

  5. The Unified IP Transport business model aims at establishing and operating an own transport and transit network in Eurasia Unified IP Transport Business Model: Overview 2 Moscow Envisioned Endgame • Objective: Establish a regional transport and transit network for IP traffic which is wholesaled to international and regional operators • Approach: • TASIM leases fiber or capacity from several operator partners, creates an interconnected backbone and wholesales the network back to the partners and other operators • TASIM creates value by • Providing connectivity to 2nd/3rd level countries (countries without direct border to the operator home country) • Consolidating capacity and therefore creating scale effects • Committing capacity so that new routes can be built or existing ones upgrade • Infrastructure: TASIM owns and operates own active infrastructure in its network China (Shanghai) Turkey(Istanbul) UAE(Dubai) Possible TASIM Transport & Transit Network Routes Backbone Network in Surrounding Regions

  6. Key concepts • Own active infrastructure, one network • Passive infrastructure by consortium members, when available • Wholesale business only

  7. In the Service Exchange model TASIM can help operators to jointly provide services 3 Service Exchange Business Model: Overview • TASIM’s objective is to improve regional operators’ national and international footprint by facilitating the exchange of services between operators • For example, if an international company wants to interconnect offices in several countries, TASIM can help operators to avoid each-to-each contacts by becoming a single point of contact for all • TASIM’s role is to simplify service integration between operators by introducing single point of contacts, and common standard on parameters of services Client VPN EXAMPLE Operator 1 Client VPN Operator N Operator 2 Client VPN TASIM Service Exchange Operator 4 Operator 3 Client VPN Client VPN Client VPN(HQ) Operator1 TASIMSE Operator2 ClientVPN(remote) EXAMPLE Underlying network connectivity Client’s VPNs connected via TASIM service exchange One-stop shop client payment Service exchange fee Network usage fee

  8. In each business model operators will connect to TASIM on different layers ILLUSTRATIVE TASIM Network Operator 1 Operator 2 Service Exchange TASIM acts as intermediary connecting services of different operators, e.g. P2P, video, VPN Transport TASIM provides IP connectivity for participating operators via the TASIM network based on rented fiber/capacity Brokering TASIM negotiates route deals between multiple operators, but does not own or operate any infrastructure Existing Fiber Infrastructure Owned by operators Network equipment (e.g. node)

  9. Impact on regional carrier market • New business model for regional transit • Win/win for participating operators • Service Exchange as added value • Improved regional connectivity

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