Www.vsnlinternational.com International Bandwidth Trends Internet2 – ITF Meeting April 24,2006 Peter Barletto Sylvie LaPerrière

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International Bandwidth TrendsInternet2 – ITF Meeting April 24,2006

Peter BarlettoSylvie LaPerrière


Toward optical cable build-out madness

The internet tsunami takes everybody by surprise. The magic potion of DWDM : by the year 2000, cables of 1000 times

the capacity of previous generation were being installed. Deregulation, easy access to capital, advances in laser and fiber

technology, early players gain high valuations and spectacular internet growth creates a new generation of global cable builders: Global Crossing, Level3, FLAG , 360networks, Tyco and results in a cornucopia of transmission capacity.

Internet folly: myth that traffic will double every 90 days forever. Capacity prices plummet: Trepidation Capacity providers go under


The big build out of the early 2000’s

Starting shot was given by Atlantic Crossing (AC1) which came on-line in May 1998 and TPC-5 on the Pacific side in December 98.

Level3, Global Crossing, FLAG, 360, TGN networks emerged as the major new generation cable builders.

The final achievements were the terabit level C&W TransAtlantic cable and the Tyco TransPacific cable; both came on line early 2003.

The Atlantic has 4 terabit level cables, the Pacific one A trinity of East-Asia terabit level cables : EAC, C2C and APCN2 and a

North Asia terabit loop: FNAL/RNAL


Could there be some oversupply?

Very few cable builds likely for the rest of the decade, less willingness to expand lit capacity before demand

The gap between lit and design capacity


Lit capacity versus demand

Cost to activate all major unlit capacity is high: transatlantic capacity (9.6Tb) is estimated at $3.5 bilion and $3.9 billion

transpacific (7.9Tb) and $12 billion intra Asia (15.6Tb). (source: Telegeography 2005)

Some additional lit capacity likely needed in 2006-2007 Better equilibrium between supply and demand


Predictions and forecasts revisited

What will fill the capacity and how fast? Current (2005) transatlantic: voice: 13.3Gb internet 773.2Gb;

other (IPL etc): 62.5Gb TeleGeography predicts for end 2007: a

slow growth scenario of 1,570Gb a fast growth scenario of 1,955Gb

This still leaves ample capacity but who would dare this time around to predict it will take 17 years to fill the cable?

Internet represents approx 85% of all transoceanic capacity use and has seen renewed growth (32% in 2004, 52% estimate for 2005).

How fast will internet traffic soak-up excess? Any new international bandwidth hungry internet applications in sight?

Bandwidth prices still keep dropping but at a slower rate—is price stability coming?


Toward gigabit connectivity

First transatlantic gigabit level circuit : 2001: 2.5 gig SURFnet to Chicago Starlight

First transpacific STM-4’s 2001: two Transpac STM-4’s

2002: first transatlantic 10gb Surfnet leads again

The big R&E scare of 2002: KPNQwest disappears, Teleglobe reorganizes

Global Crossing, L3 and Tyco become major lambda providers


Continued Technological and Deployment Progress

40G technology coming (?), Router Ports exist - $$ Terrestrial DWDM available but - $$ Subsea possible but final development, impact to ultimate capacity, and costs are issues

.

More options on interfaces in undersea equipment (GigE, 10GigE)

Interest in filling in gaps in undersea footprint, prices still high in some parts of the world.

Suppliers becoming more customer and cost focused


Global Network



Dual stack IPv4 and IPv6 access on 21 access nodes in 15 countries

(March 2006)


Network Reach | Leveraging Major Infrastructure Ownership

100% owner in 3 cable systems(Trans-Atlantic, Trans-Pacific, Singapore-Chennai)

Leading investor in another 3 cable systems (Sat3/Safe, SMW3 and SMW4)

206,356 km of global connectivity Trans-Atlantic and Trans-Pacific data

transfer capacity of 1 trillion bits per second

SDH & SONET to support IP, ATM, Gigabit Ethernet

Diverse redundancy and protection capabilities

Greatest diversity to, and within, India.


VSNL India Footprint | Diverse Connectivity to and from India

Comprehensive Cable Redundancy

Capacity on all cables coming into India

Tata Indicom Cable

100% VSNL Owned and Operated

SMW4

Network Administrator

One of the largest Investors

Ring Architecture for redundancy

Most vibrant domestic network in India

NLD Backbone 40,000 Route Km covering

300 major cities Pan India Coverage with

dual line maintenance


Major Cable Investments | Tata Indicom Cable (TIC)

Newest and Highest Capacity Cable System into India (320 GBPs)

Offers Hardware and Wavelength Protection on Wet Segment

Deep Shore-end Burial

Ring-Protected Backhaul in Singapore

Leading SLAs for Service Availability

Linked Directly to VSNL’s Redundant Network in India

Onward Connectivity from Singapore to Hong Kong, Tokyo, and USA


Los Angeles (x2)

Seattle

PortlandHillsboro (x2)

To Tokyo

New York (x2)

Miami

Wall Twp (x2)

ToLondon

Trans-America | Network Capacity

Santa Clara (x2)

City-to-City Connectivity to: New York City (multiple locations) Los Angeles Santa Clara Portland Seattle Miami

Full Range of Service Offerings including: DS-3, STM-1 through STM-64 Wavelength Services Fiber Plans Ethernet Services


London (x2)

Paris

Amsterdam

Groningen

Frankfurt (x2)

Hunmanby

Highbridge (x2)

MadridLisbon

Bilbao

European | Network Capacity

ToNew York

European Ring Supports > 64 10Gb/s waves per fiber

pair City-to-City Connectivity to:

London Paris Amsterdam Frankfurt Groningen

Full Range of Service Offerings including: DS-3, STM-1 through STM-64 Wavelength Services Fiber Pairs Ethernet Services


SMW- 4 | Asia to Europe

ALCATEL FUJITSU

ALCATEL AND FUJITSU

134

VSNL Network Administrator 16-member Consortium Hosts Mumbai-based network operating

center 1.28 Tera bits per second design capacity connecting 3 continents over 20,000km Initially equipped with 160 Giga bits

bandwidth (DWDM technology) 640 Gigabits matrix Digital Cross Connect

in every station

2Segments


8 Fiber Pairs Cable Supports 96 10Gb/s

waves per fiber pairHillsboro (x2)

Los Angeles (x2)

Seattle

Portland

Tokyo (x2) Emi

Toyohashi

Guam

Trans-Pacific | Network Capacity

Maruyama

Santa Clara(x2)

ToNew York

8 Fiber Pairs Per Cable Ring Supports 64 10Gb/s waves per fiber pair City-to-City Connectivity to:

Portland Seattle Los Angeles Santa Clara Tokyo

Full Range of Service Offerings including: DS-3, STM-1 through STM-64 Wavelength Services Fiber Plans Ethernet Services

8 Fiber Pairs Cable Supports 96 10Gb/s

waves per fiber pair


Japan & Pacific Region | Interconnectivity

Regional Network Interconnectivity FLAG North Asia Loop (FNAL) Reach North Asia Loop (RNAL) FLAG Eur-Asia C2C Cable Network Asia Netcom (ANC) APCN-2 Australia Japan Cable (AJC)

Japan Interconnectivity Powered Com (PWD) NTT-E NTT-C KVH Tepco

TGN On-Net Locations

TGN Interconnect Points


C2C| Fiber Pair

Single Fiber Pair in 8-pair system On “Main Ring” 960 Gbps of ultimate capacity


Company Overview


The new VSNL International

Two complementary acquisitions …

November 1st 2004: VSNL India announces purchase of Tyco Communication assets; July 1st 2005: deal completed

July 25th 2005 : VSNL announces purchase of Teleglobe; February 14th 2006: deal completed.

… give VSNL international unparallelled capabilities

Today TGN represents about 36% of lit TransPacific capacity (73% of design capacity) and 20% of both lit and design capacity under the Atlantic

Teleglobe brings a global IP network, a global voice network, TDM and VoIP with 13 billion of voice traffic and global roaming

VSNL International is a leader in EoS (Ethernet over Sonet)


VSNL International | Tata Group Financial Stability & IT Capabilities

Tata Group

125-year old largest private sector group

$17.8 billion in revenues

Acquired VSNL in February 2002

Tata Consultancy Services (TCS) Asia’s largest software & systems

integration services company 33 countries across 5 continents Key player in high-growth international

markets


VSNL International | Integrating Key Assets

VSNL India’s #1 Communications Group Leading provider of International Telecommunications and Internet

Services Largest Enterprise, Wholesale and Retail Broadband services

footprint 800,000 strong Internet subscriber base

VSNL International Global presence with operations the US, Europe & Asia All customer segments, encompassing wholesale and corporate. Presence in voice, data and mobile services markets

TGN 60,000 kilometers of global sub-sea connectivity spanning 3

continents Bandwidth at all STM/OC levels Reliable, scaleable and fully redundant

Teleglobe Leading international wholesale voice, data & mobile provider Over 1400 wholesale customers & 13 billion minutes 100 Gbps connectivity in nearly 80 cable systems Reach to 240 countries/territories 250 direct and bilateral relationships Major supplier of voice, internet traffic and signaling conversion Wholesale services to over 350 mobile operators


Our Strategy | The Building Blocks

17 billion minutes of international voice traffic 415 bilateral agreements ITFS in over 80 countries Ownership in 100+ sub sea and terrestrial cable systems 7.68 Terabit system across Trans-Pacific, Trans-Atlantic, Intra-Europe 5.12 Terabit system between Singapore and India Tier 1 ISP with 67 PoPs in 21 countries Domestic India network with 37,000km of fiber network 122 PoPs of MPLS core backbone in India 300,000 buildings On-net in India 30 major Indian cities on Ethernet MAN network IP backbone of 10 gigabits 39 Data centers and co-location facilities across the world Over 350 mobile customers connected for global roaming


Integrated Network Strategy I Next-Generation Capabilities

IP based core network built on owned infrastructure

Partnerships and ecosystem

Content partners IMS

MPLS-NNI using service mediation technology

Voice peering

IT Infrastructure Services

Hosting Storage DR/BC

+

+ Network Related Managed Services

N/W Management Security

Embedded applications for collaboration, security and communication

Next GenerationNetwork Capabilities

=


Wholesale Data


Wholesale Data | Global Strengths Tier 1 Global Network

Extensive ownership in over 100 sub-sea and terrestrial cable systems

Scalable bandwidth solutions with effective cost management

Synergy between Teleglobe network infrastructure and scalability of TGN routes

Global Tier 1 ISP with 67 worldwide PoPs in 21 countries

Global IP backbone AS 6453 connected to more than 90 countries

IPv6 leader

Market leader in satellite-based IP services

Diversely routed 10 Gbps and 2.5 Gbps wavelengths or resilient self-healing SONET/SDH ring infrastructure

Connects ISP and content providers through more than 120G of peering and 400G of customer connectivity worldwide.

Greater reach and on-net capacity (EMEA-Africa)

Enhanced service capabilities for hosted applications and managed offerings


Wholesale Data | Key IP Services Strengths

Tier 1 international network focused on services for carriers / ISPS 67 Pops - 60% Outside North America 435 Customers - 69% of Revenue Outside North America 1 AS Number, 1 Operating Center - Reputation for Excellent QoS

435-strong stable customer base Expansive satellite capability to the developing world

Providing primary or back up service to key growth regions Unparalleled global reach and local peering

Kuala Lumpur, Manila, Cairo, Riyadh, Sydney, Hong Kong Middle East IX (MEIX), Egypt IX (EIX) Unique to ASN

Benefit from significant traffic share in several geographies Canada, India, Spain, France, Middle East, Parts of Asia, Africa

Balanced International Content and Eyeballs India traffic to enhance global balance

Unique peer-to-peer communities Strongly positioned as content becomes more regional Many customers in high growth regions Unique eyeballs Tier 1 peering relationships


Wholesale Data | AS6453 Highlights

Single Global AS Provides superior connectivity between Middle East and Asia,

Europe and Asia and North America and Middle East

Industry Competitive SLAs Excellent round trip delay (RTD), 0% pack loss, 100% reach

Private Peering With All Tier 1 Carriers

More than 70 Peering Arrangements

67 Internet PoPs in 21 countries Worldwide


Wholesale Data | Key IPL Services Strengths

Global Transmission Services Fiber (special service ) Wavelength Services Private Line Services Half Circuit Services

Largest owned infrastructure and capacities across the Pacific, Atlantic, Intra Europe and Asia

SEA ME WE 4 Network Administrators and Full Circuit Availability Ability to provision high bandwidth in short time frames Round the World Global coverage Diverse and Redundant routes and service options available

Unprotected (largely TGN network or single-leg consortium cables) Restored Protected Premium Protected


Wholesale Voice | Global Strengths

Global Reach # 1 wholesale international voice player with combined volume of 17b minutes

Over 350 direct and bilateral relations with leading voice operators

Largest wholesale international footprint

Hundreds of carrier interconnects provide us with diverse routing, lowest possible costs

Full global coverage enhanced with India-route strengths

Enhanced quality, stability, competitiveness

Value-Add Global paradigm of exceptional commercial flexibility

Teleglobe systems and tools leveraged across full India portfolio

Customers benefit from faster time to market and lower costs

Automated, adaptive BestValue RoutingTM enables us to offer multiple service levels with robust quality, aggressive prices, & continuous optimization with lower SG&A


Mobile | Global Strengths Global Leadership

Market leading position with more than 350 GSM operators worldwide Mobile operators are supported with the Company’s global signaling network, enhanced roaming

services, managed mobile content services, and global voice termination World signaling conversion leadership with Wireless Global Roaming (WGR)

“Translates” between signaling network standards in North America (ANSI) and the rest of the world (ITU)

Comprehensive Services Portfolio Enhanced full signaling range and scale from Americas/Europe to include Asia signaling anchor Basic Signaling: to ~400 wireless operators in more than 165 countries.

> 15 billion message signaling units of value-added signaling services Managed Roaming: Allows operators to assign roaming subscribers to the visited network of

their choice VTS Prime: Mobile call completion with guaranteed caller line identification transport to more

than 35 strategic countries Continuing mission-critical business support

Next-Generation Applications Additional leading-edge applications offered as a hosted service offering

Push-to-talk on Cellular IP Multimedia Subsystem(IMS) International Prepaid Gateway and CAMEL Gateway


Global Teams | Local Support

VSNL Singapore Pte Ltd. No. 5 Shenton WayUIC Building #22-07Singapore 068808+65 637 22 574+65 642 30 315 (Fax)

VSNL America, Inc.2100 Reston Parkway - Suite 320Reston, VA 20191USA+1 703 547 5900+1 703 547 6555 (Fax)

VSNL Telecommunications (US) Inc.90 Matawan RdSuite 101Matawan, NJ 07747+ 1 732 203 3000 + 1 732 203 3003 (Fax)

750 College Road EastPrinceton, NJ 08540+1 609 750 3333+1 609 419 1511 (Fax)

Teleglobe12010 Sunset Hills RoadReston, Virginia 20190+1 703 766 3100+1 703 766 3102 (Fax)

VSNL Telecommunications (UK), Ltd5th Floor, 30-34 Moorgate London, EC2R 6PJUnited Kingdom+44 20 7519 4610+44 20 7519 4609

Suite - 7th Floor2 Harbour Exchange SquareLondon, E14 9GE, England+44 207 519 4610+44 207 519 4609 (Fax)

VSNL Hong Kong Limited2402 Bank of America Tower12 Harcourt RoadCentralHong Kong+852 3693 8888+852 3690 2022 (Fax)

Asia-Pacific - Hong Kong2508 Two Pacific Place88 Queensway, Hong Kong+852 2530-8500 +852 2537 7417 (Fax)

Teleglobe1555 Rue Carrie-Derick Montreal (Québec)Canada, H3C 6W2 +1 514 868 7272+1 514 868 7234 (Fax)

VSNL India HeadquartersLokmanya Videsh Sanchar BhavanKashinath Dhuru MargPrabhadevi, Mumbai 400028India+91 22 5652 6400+91 22 5652 6401(Fax)


Thank You!

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Www.vsnlinternational.com International Bandwidth Trends Internet2 – ITF Meeting April 24,2006 Peter Barletto Sylvie LaPerrière