Building Integrated ICT Infrastructure

Byron Clatterbuck Chief Commercial Officer SEACOM

April 16, 2014

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The African Telecoms / Bandwidth Landscape Has Been Transformed Over The Past 5 Years
The Arrival Of Submarine Systems And Rapid Terrestrial Fibre Development Has Launched An African Data Revolution
Sub-Saharan Africa Internet Bandwidth (Gbps)
650

Throughput (kbps)
2008 2011

521 448 363 251 160 184 85 207 233

492
380

80

38 2008
Source: Global Internet Geography, 2013

2013

Ghana

Kenya

Mozambique

Nigeria

South Africa

Tanzania

Source: PingER, March 2012

Internet Usage Is Increasing Rapidly

Percentage of Individuals using the Internet 40% 30% 20% 10% 0%
Kenya Tanzania Uganda

Pilot Schemes And Full Scale VAS Propositions Are Being Launched Across The Region

2009
Source: ITU

2012
Note: Illustrative examples

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But Various Bottlenecks Continue To Negatively Impact Latency And Service Quality
Access Speeds Lag BRIC Nations
2011 Throughput (kbps)
1,278
865

Whilst Quality Still Has Room For Improvement

2011 Inter Packet Delay Variation (ms)
7.2

921
521

448

521 251
207

492

3.2 1.4
1.5

380

1.8 0.8 0.3 0.3

0.4

1.2

0.8

1.4

1.3

Source: PingER, March 2012

Source: PingER, March 2012

Overall User Experience Levels Remain Lower Than The Rest Of The World Despite Recent Improvements
A Mean Opinion Score (MOS) of greater than 3.5 can generally support VoIP services such as Skype
2008 2011

3.6 2.8
3.1

3.4

3.7 3.9
3.2 3.2

4.0 4.0

4.0 4.1

4.4 4.4 3.6 3.8

3.9 4.0

4.3 4.3

4.3 4.2

2.6
1.7 1.0 1.7

South Africa

Kenya

Tanzania Mozambique

Nigeria

Ghana

Brazil

Russia

India

China

US

Japan

UK

Note: MOS provides a numerical indication of the perceived quality from the users' perspective of received media after compression and/or transmission. The MOS is expressed as a single number in the range 1 to 5, where 1 is lowest perceived audio quality, and 5 is the highest perceived audio quality measurement Source: PingER, March 2012
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Given These Latency Issues, International Bandwidth Alone Is Yet To Fully Unlock Demand For Internet Based Services
Until content in all its forms is brought to Africa, and the tools to create local content are made available, Africa will continue to lag in creativity, efficiency and revenue generating potential from the Internet
Major Internet Applications Are Still Largely Unavailable In Africa Given The Limited Content Hosted Locally Within The Region

Africa Kenya South Africa BRICs Brazil Russia China

India
Selected Developed Markets Japan France

Germany
United Kingdom Canada Japan United States
Peering locations in mid-2013

New peering locations added since mid-2009

Source: Telegeography, 2013

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Bringing Rich Content And Services To Africa Will Drive New Demand And Usage To Levels In Line With Other Regions
Peak Period Mobile Internet Traffic Composition
Monthly Consumer Consumption (Mb):

21

348

358

444

1,100

100%

5% 5%

14% 23%

11% 22%

80% 39% 60% 26% 38% 32% 47%

40%

16% 24% 19% 7% 18% 10% Latin America Tunneling Web Browsing Marketplaces

25% 15% 23% 6% 5% 9% APAC Communications

20%

9%

6% 8% 14% Europe Filesharing Social Networking

9% 9% 8% North America

0% Africa Outside Top 5 Gaming

Real-Time Entertainment

Delivering this internet experience to African enterprises and consumers requires multiples of the current levels of bandwidth in the region
Source: Sandvine, 2H 2013, Aggregate of upstream and downstream traffic
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Thereby Unlocking Africas Internet Potential

Africa today Africa in 2025

~50% Internet penetration

600m Internet users

16% Internet penetration

167m Internet users

>50% urban residents online

67m smartphones

$300bn Internet GDP contribution

360m smartphones

52m Facebook users

$18bn Internet GDP contribution

$75bn in e-commerce sales

Source: McKinsey

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SEACOMs IP Network Focused on quality!

Multiple Tier-1 Upstream Providers & EU IX Peers
Amsterdam

London Marseille

Multiple Tier-1 Upstream Providers & EU IX Peers

Global Internet routes through interconnection with multiple Tier-1 networks

SEACOM IP Transit network Peers at multiple IXs: LINX AMS-IX France-IX

ASIA/EU Tier-1 Upstream via Mumbai

Mumbai Djibouti

Kampala

Nairobi Mombasa

Built in resiliency through diverse West & East Cable Systems (including own terrestrial fibre networks in South Africa between WACS CLS, CT, JHB & SEACOM CLS)
SEACOM Router SEACOM WACS
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Dar Es Salaam

Low latency content from leading CDN nodes deployed on SEACOM MPLS Network on African continent.

3
Maputo Johannesburg

African networks & content

Mtunzini
Cape Town

Building Integrated ICT Infrastructure

Thank you

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