Partnerships to connect the next billion - CTO ... invest/CTO Dubai...Partnerships to connect the next billion Government Strategies for stimulating ICT Demand and investment Graham

Graham Butler – Executive Chairman Bitek Group of Companies © 2017

Partnerships to connect the next billion

Government Strategies for stimulating ICT Demand

and investment Graham Butler

Chairman Bitek Group of Companies

ICT priorities “Broadband, Broadband, Broadband” Mr Shola Taylor, Secretary General

Graham Butler – President and CEO Bitek © 2013

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VoIP Packets (Encrypted Services?)

CLOUD A The World Wide Web CLOUD B National IP Network

2G / 3G / 4G

TDM ‘numbered’ call

SIM Bank PBX/VoIP Switch Media Gateway

IP Gateway IP Gateway

Inbound VoIP / OTT SERVICES Unlicensed / Bypass / Fraud

Diversity and encryption creates a ‘safe haven’ for crime/terrorism

A B

WiFi, WiMax 3G, 4G

VoIP/OTT app call

WiFi, WiMax 3G, 4G

VoIP/OTT app call

SIM Bank PBX/VoIP Switch Media Gateway

2G / 3G / 4G

TDM ‘numbered’ call

Broadband Router

VoIP/OTT app call

(Gaming Console) VoIP/OTT app

Broadband Router

VoIP/OTT app call

(Gaming Console) VoIP/OTT app

The evolution of interception - packet switched networks

?

Stimulating ICT Demand and investment


The diversity of VoIP protocols and applications

PROTOCOLS (6) APPLICATIONS (114) – Commercial VoIP Operators

SIP (93) Astra, Asterisk (PBX), AIM Phone, AllfreeCalls.net, Broadvoice, BT-Yahoo, BuddyTalk, Calleasy, Chamaleon, Deltathree, Dialpad, Dialnow, Cheap calls to India, Cockatoo, Ding-a-Ling, Earthcaller, Ekiga (old GnomeMeeting), Expresstalk, Fonebee, Freeswitch, Fring, FreeCallPlanet, Free calls to Pakistan, Free VoIP International Calls, FWD.Communicator, Gizmocall, Gizmo Project (Gizmo5), Globalinx, GrandCentra, iCall, intervoip, iSkoot, Jajah, Jangl, Jaxtr, Justvoip, KCall, Kphone, Kutecom, Lingo VoIP, Linphone, LowrateVoip, Lycos, MagicJack, MediaRing, Minisip, Mobivox, MrTalk, MSN Messenger, Nettalk, Nonoh, OpenWengo, PacPhone, Packet8, Paltalk, Peerio, Pennytel, OpenSip, PhoneGaim, PhoneGnome, Sgoope, SightSpeed, SIP Communicator, SIP User Agent, SIPCLI, SipXphone, SJPhone, SMSDiscount, Switchspace, Talqer, TalkPlus, Teltub, Tringme,Truphone, Yaka, Yahoo, VD3Delta, Viber, Vivox, Vonage, Voncp, VoIP Buster, VoIP Cheap, Voipraider, Voipwise, VOX, Voixio, Windows Live Messenger, X-Lite, X-Pro-Vonage, Yate , 3XC, 8x8, 12voip

H323 NetMeeting, SJPhone, WebTalk, Open H323, CallGen323, Ekiga (old GnomeMeeting), Freeswitch, Yate

TLS Whatsapp, Skype, SkypeIn, SkypeOut, Viber, ooVoo

Google Google Talk

Net2phone Net2Phone

IAX IAX Phone, Freeswitch, Yate, Kiax, Moziax

OTHER VOIP PROTOCOLS (3)

Megaco (H248), MGCP, Skinny (SCCP)

E-MAIL PROTOCOLS (3)

POP, SMTP, IMAP

IM PROTOCOLS (10)

OSCAR, AIM/ICQ, IRC, iChat, Mac OS X, MobileMe, SightSpeed, Skype, Yahoo! Messenger, XMPP/JABBER

VOIP APPLICATIONS LARGEST VOIP SERVICES (Example: US to Caribbean)

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http://www.viber.com/�


What is on your national IP network?

Example - Viber Media

“Call, text, and send photos to each other, worldwide - for free!”

• 350m downloads / 105m concurrent users / 550k sign ups each day.

• Viber client will not install unless the user allows access to their contacts list.

• Development centre located in Israel - hosting at Amazon Cloud / Akamai Cloud (US).

• Cloud hosting in liberal jurisdictions allows OTT services to bypass national policies.

• Consistent refusal to provide intercept data to courts and LEAs.

What OTT services are on your network? Do they contribute to costs? Are they lawful intercept compliant?

479 Cyber-currencies Crypto-currencies

268 VoIP/P2P/IM (Chat)

33 Real-Time

Entertainment

105 Mobile Money

Transfer Operators

584 Online Gambling

Operators

73 Online Gaming

Operators

210 Social Networks

OTT Examples

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Criminals evade detection • Italian police identify

widespread use of Skype

• Organised crime

• Arms + drug trafficking

• Prostitution rings

The $30 million toilet ! • Organised crime + money

laundering + human trafficking

• Links to Government officials

• Recordings of tapped calls

• Drugs and guns seized

The $3.6 million bookshelf ! • 40 Pre-paid SIM’s / softswitch

• 3 million call minutes (per month)

• $0.1 per minute charge

• $300,000 p/m / $3.6 million p/a

The link to serious crime and fraud

4



The Effect



373 competitors Unlicensed SIP VoIP (RFC 3261 variants)

aamranetworks.com, Abovenet Communications, Acess Kenya Group, ACN_DSL, Atlantic Broadband, Airtel Broadband, Akamai, ALGX, Amazon.com, AmazonHosting, Angel Drops, Aruba, ASKTel, ASTA Net, 24/7 Real Media ARTNET, AT&T U-verse, AT&T_wireless, Bandcom, Beeline, Beam Telecom, Belgacom Skynet, BellCanada, Bell Mobility, BellSouth, BTS, Bharti Airtel, Bankstown-Clinical-School , BICS, Blast_Comms , Bluewin, Bouygues Telecom, Bright House Networks, Broadvoice, BSNL, BT Italia, Beyond The Network America, Cable 1, Cablecom, Cablevision, Cabel Digital Kabel TV, Cable and Wireless Americas Operations, CANTV services, Century Link, Checkbox, Charter Communications, China Telecom, China Mobile, China Telecom YunNan, China Telecom Jiangsu, China Telecom Sichuan, CJSC Ural Trans Telecom, Completel, Cameroon Telecommunications Ltd, China Tie Tong, CoLoSolutions, Cogent Communications, CommPeak (Amazon Hosted), Canaca.com, China Unicom, Claro Dominican Republic, Claro Peru, Clear Wireless, Comnet, CANL, Choopa, Connexions 4 London, Cogeco Cable, Compass , ComCast, Corgi Tech Ltd, Chunghwa telecom, Consejo Hondureno de Ciencie y Tecnologia, CTBC, Cybercon, CYTA HELLAS, nyc callcenter 1, Datacenter, Dedibox, Dial Telecom, Digital Networks CJSC, Distributel Communications, Dixivox, Deltathree, DIGI Ltd, Digicel Jamaica, Dooel Kavadarci, Donbass Electronic Communications Ltd, DNA Oy, DODO, DTS Ltd, E Networks, Econocall, Ecatel, Ecuador Telecoms, EdgeCast Networks, EGNET, Elion Enterprises GANDI, Eircom, Elisa OYJ Mobile, Emirates Telecom, Enterprise Networks, Entertainment Television, Eweka Internet Services, FibreNet, Fibernetica Corp, FLOW, Fonebee, FORTHnet, Freeport-McMoran, Free SAS, Gateway Communications, Galaxy Communications, Gestora de infraestructursa de telecomm, GetGeorgeMobile, GCA Telecom El Salvador, GCN/DCN Networks, GIO Moblie Ghana, Globalinx, Global Net Access, Global Village, Globe Telecom, googletalk, Godaddy.com, GoandCall, GoGent, Golden Lines Cable, Guandong Molile Communications, Hadara, Haiti Networking Group, Haiti Telecom, Hanaro Telecom, H3G Italy, Home Network Japan, Hong Kong Broadband Networks, Hotwire Communications, Hubei, Hurricane Electric, INDIT Hostings, Infracom Italia, Inphonex, Inei international, Internap Network Services, Icall, IDT Corporation, iweb, Incapsula.com, Inet Limited, Internetcalls/Freecall, Internet Development Company, IPCommunications, Lifeisbetteron, Iscon Internet, Isotropic Networks, Ispro Lietisum, IPTelligentLLC, ITIBITI.COM, Jazz Telecom, Joyent, JSC, JSC Kazakhtelecom, Kabel Deutschland, Kampung Communications, Karib Cable, KEKU (Amazon), Kimsufi.com, Korea Telecom, Krypt Technologies, KPN B>V>, Lankacom, Lbisat, Leaseweb BV, Level 3 Communication, Lexis-nexis, LgDacomCo, Libantelecom, Lightspeed_SBCglobal, Lightyear Network, Limelight Networks, Link Egypt, LG Powercom, LG Telecom, LLP Asket, LowRateVoIp, Mana S>A>, Magma, Maroc Telecom, Magyar Telecoms, LINODE, MobileOne, Mainehealth Medical Centre, Mauritius Telecom, Mediaserv, Mediaring network services, Mediacom Communications, Megapath, merkenmarketeers (BICS), MS Hotmail, Microsoft corporation, Microsoft Hosting, MIR Telematiki, M2 Telecomms Group, Microsoft Ltd, Microsoft Internet data center, MTNBusiness (telkom Hosted), Mobitel, Movistar, Multilink, Multiregional Transit Telecom, MWEB Connect, mycingilar.net, N Layer, Nec Biglobe, NC Nummericable, Netvision, Net2Wholesale, Net2Phone, Netzquadrat, NexG, Nexgen Networks, Nextgen tel, NetstreamTechnology, NetTalk, Netia SA, NOC4HOSTS, ntlworld, NTT&Verio, Nymgo, Net 1, OFFRATEL, Open Market, Onavo, Open Computer network, Oi Internet, Oi Velox, OVH SASOOREDOO, OVH Hosting, Orange Espania, Orange Dominica Power phone, Orange France, Orange Home UK, Orange Palastine Group, OJSC Kyrgyztelecom, OJSC Rostelom, OJSC MegaFon, Ortel Communications M/S, Pakistan Telecommunications Company, Palastine, Packet Exchange, Rackspace Pixius Communications, Primus, Paetec, Peer1, Pinger, Peru_S.a.c, PLDT (Philippine Long Distance Telephone), Republican Unitary Telecommunications, RCS & RDS Residential, RNADTA, Quadranet, Reflected Networks, Rodgers Cable, ROM Telecom, Rostelcom Kaluga, RCN, RSL COM Canada, R Cable y telecomuniciones Galicia ServerCentral, Samjung Data Service, SSDN Communications, sakura internet inc, SaudiNet, SFR, Sedel, SK Telecom, SKY Broadband, Singlehop, Smart Broadband, Softbank Telecom Corp, Softlayer, SoftlayerMGBlock, STS, SONATEL, Sprint, Speedclick, Splendor, Spectrmnet, Starnet, Starhub Internet, Subisu Cablenet (pvt ) Ltd, Switchspace, Syrian Telecommunications, TATA Communications, Telefonica USA, Telecommunications Company, Time Warner Cable, T Mobile, Telebec, Telkom Internet, Telstra Internet, Telecom Algeria, telenet N.V., Telio Holdings, Telefonica De Argentina, Telus Communications, TPG Internet Pty, TalkFree, Telenor, TeliaCarrier, Tikona Digital Networks Pvt, Telefonica De Espana, Telia Network Services, Telecom Internet, Telecom Services Trinidad & Tobago, Tiscali, Telecom Malaysia Berhad, Tricom, Talk4Free, Telgua, Telinta VoIP Company, Telefonica Moviles Panama, Tirpitz, Tim Celular S.A. Telecom Indonesia, TOT Public Company Limited, Turk Telecom, UK Rtelecom, Ubiquity Servers, UCOM, UPC AUSTRIA, UPC Polska, Vonage (Leaseweb.B.V), Voyager Internet Limited, Verat DOO, Verizon, Verizon Sweden, Vivacom, VideoTron, VDC, VIVO, VOO, Vosox, voxsun.net, ViVox, Vitelity, Virtustream, Vonage, VolumeDrive, Vaboomz, Voipms, Yahoo, VoX Communications, Voxee, Wave Internet Services, WebNX, Webair, WholeSale Internet, WindTelecom, Windstream Communications, XO_Communications, Xplornet Communications, YahooSIP, YOU Broadband, ZAMTEL, Ziggo, ZON TV cabo, ZSR-ZT Bratislava, 44Direct, 8 x 8


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Regulated Highway Traffic Vs Unregulated Internet traffic management

• Heavy investment in road infrastructure

• Vehicles must be registered and licensed

• Drivers must pay a road license or toll

• Highway owners receive revenues

• Government receives taxes

• Regulator monitors traffic for fraud and tax avoidance – remove bypass fraud

Regulated Highway Traffic

TERRORIST (ENCRYPTED)

BYPASS FRAUD

BANDWIDTH 50—75% UNLICENSED NO TAX

DRUG CRIME (ENCRYPTED)

Non-Managed Internet Traffic

• LICENSING/TAX/USF Who pays a license?

Who pays taxes?

Future Licence fees?

• GREY TRAFFIC BYPASS VoIP, P2P, IM, Chat

Encrypted?

Carrier revenues lost!

• BANDWIDTH MANAGEMENT

50-75% unlicensed

Traffic Congestion



Types of Universal Service Fund (USF)

1. Percentage of Profit (always fails due continued network expansion)

1. Percentage of Turnover

(International carriers will collect money overseas to avoid taxation)

2. Best and Fairest solution is by calling minute = X cents per minute (Simple, avoids changes in technology i.e. transition to VoIP), levels the playing field and defines “legal taxed calls” against “bypass” (non-taxed).

Advantages • Provides the Regulator with information to make informed decisions. Protects licence holders

and allows the Regulator to offer Tenders back to the carriers to build infrastructure where they might not have done before.

• One country has raised millions of dollars ($2 million per month) through an International inbound tax $0.5 cents per minute for the education tax. Thousands of children now receive education who may have been previously disadvantaged.

• USF could also be used to fund Broadband roll out or for the building of Public Internet access locations across the country.

• Emergency Services, E-Government and gaining improved security services.



Country: Modelling parameters Proposed USF fees Rate of decline of fixed/mobile traffic 8.9% p.a. Incoming international fixed $0.03 per minute Rate of increase of all traffic (incl. VoIP) 10.0% p.a. Incoming international mobile $0.02 per minute

Incoming international VoIP $0.02 per minute Carrier charge rate $0.10 per minute

Incoming International Calls (annual) 2016 2017 2018 2019 2020 TOTAL 2016-20 - International incoming fixed-telephone (minutes) 211,761,115 194,603,896 178,824,180 164,312,597 150,968,338 900,470,126 - International incoming to mobile network (minutes) 239,484,845 216,600,387 195,891,557 177,152,436 160,196,518 989,325,744 Total international traffic excl VoIP (minutes) 451,245,960 411,204,283 374,715,738 341,465,033 311,164,856 1,889,795,870 Estimated VoIP traffic (minutes) 866,404,928 1,038,211,693 1,219,641,837 1,412,328,299 1,618,007,809 6,154,594,566 Estimated total traffic incl VoIP (minutes) 1,317,650,888 1,449,415,977 1,594,357,574 1,753,793,332 1,929,172,665 8,044,390,436

Actual USF revenues to regulator Revenues from fixed telephone (annual) $6,352,833 $5,838,117 $5,364,725 $4,929,378 $4,529,050 $27,014,104 Revenues from mobile telephone (annual) $4,789,697 $4,332,008 $3,917,831 $3,543,049 $3,203,930 $19,786,515 Total actual USF revenues (annual) $11,142,530 $10,170,125 $9,282,557 $8,472,427 $7,732,981 $46,800,619

Potential USF revenues to regulator Revenues from fixed telephone (annual) $6,352,833 $5,838,117 $5,364,725 $4,929,378 $4,529,050 $27,014,104 Revenues from mobile telephone (annual) $4,789,697 $4,332,008 $3,917,831 $3,543,049 $3,203,930 $19,786,515 Revenues from VoIP calls (annual) $17,328,099 $20,764,234 $24,392,837 $28,246,566 $32,360,156 $123,091,891 Total potential USF revenues (annual) $28,470,629 $30,934,358 $33,675,393 $36,718,993 $40,093,137 $169,892,510 Potenital increase in revenues due to VoIP (annual) $17,328,099 $20,764,234 $24,392,837 $28,246,566 $32,360,156 $123,091,891

Percentage of traffic - VoIP 66% 72% 76% 81% 84%

Revenue losses due to bypass traffic (annual) To carriers $86,640,493 $103,821,169 $121,964,184 $141,232,830 $161,800,781 $615,459,457

USF Contributions to support Broadband



T.D.M Mobile

IP Broadband

Satellite &VSAT

Multiple Licensed carriers Multiple Mobil Licensed carriers

Licensed Carriers Un-licensed & Un-regulated

$$$ UNIVERSAL SERVICE FUND

NO USF Contribution

Sub-Sea Connections 85% Full of Free Traffic

Sub-Sea Connections 85% Full of Free Traffic

Sub-Sea Connections

Regulation Control

USF Fees

Tax Control

USF Fees Numbers/SIM/Contr

ol

Generating Millions of $$$$$$ dollars through USF Collection

Connect the next One Billion Fiscal Tax collection system


Solution Model for lawful data capture and access

11


Graham Butler – Executive Chairman Bitek Group of Companies © 2017

Thank you for your attention Graham Butler

BITEK GLOBAL LIMITED

www.bitek.com

UK Mobile +44 (0) 7787 150055 Email [email protected]

Documents

Partnerships to connect the next billion - CTO ... invest/CTO Dubai...Partnerships to connect the next billion Government Strategies for stimulating ICT Demand and investment Graham