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Emerging trends of Broadband Internet and the critical infrastructure requirements Alaa Talaat Sales Director / Middle East and Africa FLAG Telecom ARABCOM June 2004. www.flagtelecom.com. Agenda. About FLAG Telecom Demand for Broadband, FALCON and the FLAG Global Network

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slide1
Emerging trends of Broadband Internet

and the critical infrastructure requirements

Alaa Talaat

Sales Director / Middle East and Africa

FLAG Telecom

ARABCOM June 2004

www.flagtelecom.com

agenda
Agenda
  • About FLAG Telecom
  • Demand for Broadband, FALCON and the FLAG Global Network
  • FLAG Telecom Virtual Point Of Presence (VPOP)
about flag telecom
About FLAG Telecom
  • FLAG is a leading independent provider of international network transport, connectivity and data services to the wholesale communications & Internet communities
  • FLAG owns and manages a unique network that fully encircles the globe, connecting key markets in Asia, Europe, the Middle East and the USA
  • FLAG is owned by The Reliance group, which is India’s largest corporation, with total revenues in the financial year 2003 of US$ 16.8 billion,and market capitalisation of US$ 21.7 billion, with activities spanning across Telecommunications, Oil, Petrochemicals, Textiles, Financial Services, Insurance, and Power
  • Our customers include the world’s major carriers, ISPs, content providers and other broadband operators, including all of the top 10 international carriers
the flag global optical network
The FLAG Global Optical Network

A highly reliable, fibre-optic network that we fully own and manage, providing seamless connectivity between four continents

the flag global ip network
The FLAG Global IP Network

A high-speed, low packet-loss global MPLS based IP network, enabling superior content transport and advanced data networking

agenda6
Agenda
  • About FLAG Telecom
  • Demand for Broadband, FALCON and the FLAG Global Network
  • FLAG Telecom Virtual Point Of Presence (VPOP)
key drivers of broadband access
Key Drivers of Broadband Access
  • Global Broadband Access
  • 62m broadband subscribers worldwide of which 41m are DSL
  • DSL lines grew by 90% in 2002
  • Online content through downloading and swapping multimedia files, multi player gaming and video
  • Electronic Business
  • Electronic Government
  • Wireless Penetration: “More than 1.5 billion handsets, personal digital assistants and Internet appliances are expected to be equipped with wireless capabilities by the end of 2004.”

*Source: ITU/Point Topic Ltd/ Jupiter Research

example of asian demand for broadband
Example of Asian Demand for Broadband

China Telecom

6m broadband subscribers

21 Gb IP traffic

Softbank - Japan

3m broadband subscribers

40Gb of IP traffic

ONSE - South Korea

0.5m broadband subscribers

16GB of IP traffic

middle east g etting r eady for g rowth
Growing penetration of mobile and rapid adoption of the internet have been driving an increase in the need for international bandwidth out of the Middle East

As liberalization of telecommunications markets takes place,the market growth and penetration of International connectivity sets a high pace of increased demand.

Middle East – Getting Ready for Growth
the flag global optical network11
The FLAG Global Optical Network

A highly reliable, fibre-optic network that we fully own and manage, providing seamless connectivity between four continents

agenda12
Agenda
  • About FLAG Telecom
  • Demand for Broadband, FALCON and the FLAG Global Network
  • FLAG Telecom Virtual Point Of Presence (VPOP)
flag global mpls ip network peering
FLAG Global MPLS/IP Network&Peering

Our VPOPs -such as Egypt (Cairo), Iran (Teheran) and Pakistan (Karachi)- have been seamlessly integrated into FLAG Telecom’s global IP network

the flag telecom vpop
The FLAG Telecom VPOP
  • FLAG provides the international capacity and our local partners provide “in-country” connectivity.
  • The VPOP makes it easier for local customers to buy international services, helping to stimulate growth in the local market
  • The VPOP makes it easier for international operators to buy services into the country, attracting revenue opportunities from outside the local market
how the vpop would work
How the VPOP Would Work
  • Country X is considered as the location of the VPOP
  • Customers in Country X purchase full circuit service from the local partner
  • Customers outside Country X purchase full circuit service from FLAG

End-to-end private line for customer

Country Y

Country X

Country X VPOP

Customer site

Customer site

Cable station

FLAG

Country Y PoP

FLAG

Cable station

MBS circuit

MBS circuit

ADM

ADM

Local tail

Local tail

Backhaul

Backhaul

FLAG Cable

IP circuit

IP circuit

Local tail

Local tail

IP Router

IP Router

Global

Internet

Provided by FLAG

Provided by The Local Partner

what flag would provide
What FLAG Would Provide
  • Installation of Add-Drop Multiplexers in the VPOP
  • Installation of IP routers in the VPOP
  • International capacity from VPOP to major cities world-wide
  • Marketing and sales of the VPOP service outside of VPOP country
  • Assistance to VPOP partner for sales and marketing activities
  • End-to-end network management and customer support
benefits to the vpop partner and its customers
Benefits to the VPOP partner and its Customers
  • International private circuit services to major cities worldwide
  • High quality internet access/transit
  • ATM/Frame, Global Ethernet services
  • Other future international services developed in partnership between FLAG and the VPOP partner

“one-stop shop” for the following services

opportunity for the vpop partner
Opportunity for The VPOP partner
  • Rapid growth in Internet users, adoption of broadband access technologies as well as the need for enhanced applications are driving demand for international connectivity
  • The growing ISP community and the corporate community at large are demanding more sophisticated, flexible IP and data services
  • Through the VPOP alliance The VPOP partner could further enhance its range of international products and services to meet this potential demand

In FLAG’s experience, the VPOP alliance can be a strong driver of demand and generate substantial financial benefits to both partners

vpop success stories
VPOP - Success Stories
  • Egypt:

- Before the VPOP, Egypt had a total of 20Mbs International Connectivity, 1999

- Today, Egypt has more than 1.4 Gbps of International Connectivity

- VPOP enabled rapid provision of new high capacity IP services

- VPOP deal with FLAG gave Telecom Egypt more flexibility to reduce prices

- TE/FLAG VPOP has 88% market share

  • Pakistan:

- VPOP service started in Q2 2003

- Today, more than 20 ISPs are connected

- VPOP has about a 65% market share

The VPOP offer redundancy and SLA which enabled high bandwidth/quality applications to be rolled out in the country

thank you
Statements contained in this presentation that are not historical facts may be 'forward-looking' statements as the term is defined in the Private Securities Litigation Reform Act of 1995 or statements of fact dependent on current circumstances that may change. To identify these forward-looking statements look for words like 'believes', 'expects', 'may', 'will', 'should', 'seeks', 'intends', 'plans', 'projects', 'estimates', or 'anticipates' and similar words and phrases. These, and all forward-looking statements, and the statements of fact dependent on current circumstances are based on current expectations and necessarily are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors which include, but are not limited to, our ability to achieve our objectives and the ability to maintain our leading market position. More detailed information about these risks is contained in our Annual Report on the Form 10-K for the year ended December 31, 2002 filed with the Securities and Exchange Commission. We caution readers not to rely on forward-looking statements, and we disclaim any intent or obligation to update these forward-looking statements. The information in this presentation is provided for information purposes only. No representation or warranty is given by any person as to its accuracy or completeness and it should not be relied upon.

Thank You

www.flagtelecom.com

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