Transcript VSNL International [Generic Sales Presentation v2]

International Bandwidth Trends
Internet2 – ITF Meeting April 24,2006
Peter Barletto
Sylvie LaPerrière
www.vsnlinternational.com
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
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The big build out of the early 2000’s
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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
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Could there be some oversupply?
The gap between lit and design
capacity
Very few cable builds likely for the rest of the decade, less
willingness to expand lit capacity before demand
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Lit capacity versus demand
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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
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Predictions and forecasts revisited
 What will fill the capacity and how fast?
 Current (2005) transatlantic: voice: 13.3Gb
other (IPL etc): 62.5Gb
 TeleGeography predicts for end 2007:
slow growth scenario of 1,570Gb
growth scenario of 1,955Gb
internet 773.2Gb;
a
a fast
 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?
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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
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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
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 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
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Global Network
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Dual stack IPv4 and IPv6
access on 21 access
nodes in 15 countries
(March 2006)
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Network Reach | Leveraging Major Infrastructure Ownership
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www.vsnlinternational.com
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
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Comprehensive Cable
Redundancy
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Capacity on all cables
coming into India
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SMW4
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Network
Administrator
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One of the largest
Investors
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Tata Indicom Cable
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100% VSNL
Owned and
Operated
NLD Backbone
40,000 Route Km covering
300 major cities
Pan India Coverage with
dual line maintenance
Ring Architecture for
redundancy
Most vibrant domestic
network in India
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
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Trans-America | Network Capacity
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City-to-City Connectivity to:
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Seattle
Hillsboro (x2)
Portland
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Full Range of Service Offerings including:
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To Tokyo
New York City (multiple locations)
Los Angeles
Santa Clara
Portland
Seattle
Miami
DS-3, STM-1 through STM-64
Wavelength Services
Fiber Plans
Ethernet Services
New York (x2)
Wall Twp (x2)
Santa Clara (x2)
Los Angeles (x2)
Miami
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To
London
European | Network Capacity
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European Ring
Supports > 64 10Gb/s waves per fiber pair
City-to-City Connectivity to:
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Hunmanby
Full Range of Service Offerings including:
Groningen
London (x2)
To
New York
Amsterdam
Highbridge (x2)
Frankfurt (x2)
Paris
Bilbao
Lisbon
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Madrid
London
Paris
Amsterdam
Frankfurt
Groningen
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DS-3, STM-1 through STM-64
Wavelength Services
Fiber Pairs
Ethernet Services
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SMW- 4 | Asia to Europe
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Segments
4
3
2
ALCATEL
1
FUJITSU
ALCATEL AND FUJITSU
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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
Trans-Pacific | Network Capacity
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8 Fiber Pairs Cable
Supports 96 10Gb/s
waves per fiber pair
Seattle
Hillsboro (x2)
Portland
Santa Clara
(x2)
Tokyo (x2)
Toyohashi
Emi
Maruyama
Los Angeles (x2)
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8 Fiber Pairs Cable
Supports 96 10Gb/s
waves per fiber pair
8 Fiber Pairs Per Cable Ring
Supports 64 10Gb/s waves per fiber pair
City-to-City Connectivity to:
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Guam
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Portland
Seattle
Los Angeles
Santa Clara
Tokyo
Full Range of Service Offerings including:
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To
New York
DS-3, STM-1 through STM-64
Wavelength Services
Fiber Plans
Ethernet Services
Japan & Pacific Region | Interconnectivity
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Regional Network Interconnectivity
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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)
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Japan Interconnectivity
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TGN On-Net Locations
TGN Interconnect Points
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Powered Com (PWD)
NTT-E
NTT-C
KVH
Tepco
C2C| Fiber Pair
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Single Fiber Pair in 8-pair system
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On “Main Ring”
960 Gbps of ultimate capacity
Company Overview
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The new VSNL International
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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.
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… 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)
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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)
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Asia’s largest software & systems
integration services company
33 countries across 5 continents
Key player in high-growth international
markets
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VSNL International | Integrating Key Assets
VSNL International
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Global presence with operations the US, Europe & Asia
All customer segments, encompassing wholesale and corporate.
Presence in voice, data and mobile services markets
Teleglobe
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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
TGN
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60,000 kilometers of global sub-sea connectivity spanning 3
continents
Bandwidth at all STM/OC levels
Reliable, scaleable and fully redundant
VSNL
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www.vsnlinternational.com
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
Our Strategy | The Building Blocks
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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
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Integrated Network Strategy I Next-Generation Capabilities
Partnerships and ecosystem
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Content partners
MPLS-NNI using
service mediation
technology
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IMS
IP based core network Embedded applications for
collaboration, security and
built on owned
communication
infrastructure
Voice peering
Network Related
Managed Services
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IT Infrastructure
Services
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N/W Management
Security
Hosting
Storage
DR/BC
Next Generation
Network
Capabilities
Wholesale Data
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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
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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
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Strongly positioned as content becomes more regional
Many customers in high growth regions
Unique eyeballs
Tier 1 peering relationships
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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
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Wholesale Data | Key IPL Services Strengths
 Global Transmission Services
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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
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Unprotected (largely TGN network or single-leg consortium cables)
Restored
Protected
Premium Protected
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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
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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
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Global Teams | Local Support
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VSNL Singapore Pte Ltd.
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No. 5 Shenton Way
UIC Building #22-07
Singapore 068808
+65 637 22 574
+65 642 30 315 (Fax)
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VSNL Telecommunications
(UK), Ltd
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Teleglobe
1555 Rue Carrie-Derick
Montreal (Québec)
Canada, H3C 6W2
+1 514 868 7272
+1 514 868 7234 (Fax)
5th Floor, 30-34 Moorgate
London, EC2R 6PJ
United Kingdom
+44 20 7519 4610
+44 20 7519 4609
VSNL America, Inc.
2100 Reston Parkway - Suite 320
Reston, VA 20191
USA
+1 703 547 5900
+1 703 547 6555 (Fax)
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VSNL Telecommunications
(US) Inc.
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90 Matawan Rd
Suite 101
Matawan, NJ 07747
+ 1 732 203 3000
+ 1 732 203 3003 (Fax)
750 College Road East
Princeton, NJ 08540
+1 609 750 3333
+1 609 419 1511 (Fax)
Teleglobe
12010 Sunset Hills Road
Reston, Virginia 20190
+1 703 766 3100
+1 703 766 3102 (Fax)
www.vsnlinternational.com
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Suite - 7th Floor
2 Harbour Exchange Square
London, E14 9GE, England
+44 207 519 4610
+44 207 519 4609 (Fax)
VSNL Hong Kong Limited
2402 Bank of America Tower
12 Harcourt Road
Central
Hong Kong
+852 3693 8888
+852 3690 2022 (Fax)
Asia-Pacific - Hong Kong
2508 Two Pacific Place
88 Queensway, Hong Kong
+852 2530-8500
+852 2537 7417 (Fax)
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VSNL India Headquarters
Lokmanya Videsh Sanchar Bhavan
Kashinath Dhuru Marg
Prabhadevi, Mumbai 400028
India
+91 22 5652 6400
+91 22 5652 6401(Fax)
Thank You!
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