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The Naked Truth about Submarine Cables!
By Amr Eid Chief Commercial Officer

Agenda
Covered Geographical Area: West Africa, Europe, Middle East, India, up to the west Coast of Australia

• Key submarines in that region • Highlight of infrastructure upgrading. • Snapshot of new project proposed. • Introducing new opportunities.

Overview
1. MENA Region 2. Africa 3. Europe 4. South Asia and Asia Pacific 5. Planned Submarine Cables 6. The Opportunities 7. Appendix A - Maps

Middle East and North Africa – cables snapshot
Submarine Network Name EUROPA* (Cyprus and Lebanon) ALASIA* (Cyprus Syria) Middle East North Africa (MENA) Cable System/Gulf Bridge International (GBICS) GBICS/MENA Cable System MedNautilus Submarine System Tata TGN-Gulf OMRAN/EPEG Cable System Tamares North Pishgaman Oman Iran (POI) Network Jonah Europe India Gateway (EIG) Saudi Arabia-Sudan-2 (SAS-2) IMEWE The East African Marine System (TEAMS) SEACOM/Tata TGN-Eurasia FLAG FALCON Transworld (TW1) SeaMeWe-4 Kuwait-Iran Qatar-UAE Submarine Cable System Saudi Arabia-Sudan-1 (SAS-1) SeaMeWe-3 Lev Submarine System Fiber Optic Gulf (FOG) FLAG Europe-Asia (FEA) Aletar BERYTAR CADMOS UGARIT Aden-Djibouti CIOS UAE-Iran RFS Year Length (km) 2015 2014 2013 2012 2013 2012 2013 2012 2012 2012 2011 2011 2010 2009 2009 2006 2006 2005 2005 2004 2003 1999 1999 1998 1997 1997 1997 1995 1995 1994 1994 1992 8000 7000 4031 600 345 400 2297 15000 330 12091 4900 15000 10300 1300 20000 380 100 333 39000 2600 1300 28000 787 134 230 239 266 250 170 Lit Capacity (Gbps) 0 0 1180 1000 1340 760 550 70 60 0 700 0 3660 120 0 390 60 3590 2.5 30 10 410 165 60 440 0 0 210 90 0 0 0 Max Capacity (Gbps) 0 0 9800 5280 30400 2560 3200 42000 4800 12800 2880 0 9600 1280 0 6400 1280 6400 480 80 1280 460 540 0 4680 0 0 3200 3200 0 0 0

*Proposed Cables Source: Telegeography 2014

Middle East – cables (1/2)
Submarine Networks • Since 2010, IMEWE, Europe-India Gateway, Hawk, TE North, TGN-Gulf, Gulf Bridge, Jonah, and Loukkos have all boosted the amount of submarine cable capacity serving North African and Middle Eastern countries • Libya International Telecom’s Silphium cable, launched in early 2013, provides additional capacity between Libya and Greece having potential capacity of 1.2Tbps • Launched in February 2012, Tata Communications’ TGN-Gulf cable links Saudi Arabia, Bahrain, Qatar, Oman, Saudi Arabia, and the U.A.E. to a branching unit on the SEACOM/TGN-Eurasia cable • Also in early 2012, Gulf Bridge International extended a leg of its cable to Al-Faw, Iraq. This extension represents Iraq’s first direct connection to an international submarine cable. • Reliance Globalcom landed the older Falcon cable in Al-Faw in July 2012 Proposed Submarine Cables • Algerie Telecom in the process of building a 500-kilometer cable between Oran, Algeria and Valencia, Spain – estimated at $16million • SeaMeWe-5 cable - essentially spanning similar ground as SeaMeWe-3 and SeaMeWe-4, from Southeast Asia to the Middle East and Western Europe • Asia Africa Europe-1 (AAE-1) cable – headed by Telecom Egypt, is a similar project. Like all cables that run from the Mediterranean to the Indian Ocean, these would have a terrestrial span in Egypt • Bay of Bengal Gateway (BBG) cable would avoid Egypt. BBG would run from Malaysia to Oman via Sri Lanka and India and connect in Oman to the terrestrial EPEG system. EPEG would then provide a diverse route to Europe, avoiding Egypt.
Source: Telegeography 2014 AAE-1 Cable (Proposed cable routes) Bay of Bengal Cable

Middle East – cables (2/2)
Terrestrial Networks • JADI - The Jeddah-Amman-Damascus-Istanbul (JADI) network that links Saudi Arabia and Turkey via Jordan and Syria was launched in July 2010. The cable was reportedly out of service as of early 2013 due to the ongoing civil war in Syria • RCN - The Regional Cable Network (RCN) is another terrestrial link meant to function as an alternative route to the submarine cable networks crossing the Mediterranean and Red Seas. The system, while similar to JADI, will be considerably longer, stretching approximately 4,000 kilometers from the U.A.E. to Istanbul via Saudi Arabia, Jordan, and Syria. RCN is slated to provide 2.4 Tbps of initial capacity. The system was due to begin service by late 2012, but is delayed due to the civil war in Syria • EPEG – Omantel, Telecommunications Infrastructure Company of Iran, Cable & Wireless Worldwide (now Vodafone), Rostelecom, and Delta Telecom developed a new Europe Persia Express Gateway (EPEG) cable which links Frankfurt to Oman via Russia and Iran. The system entered service in January 2013. As part of the project, Omantel built a new submarine cable linking the cities of Barka, Diba, and Khasab in Oman with Jask, Iran • GBICS – Gulf Bridge International (GBI) has integrated a terrestrial link into its submarine network to provide route diversity for its customers. The GBI submarine cable spans the Persian Gulf and links up with the MENA cable to provide connectivity to the Mediterranean via Egypt. In late 2012, however, GBI inaugurated a terrestrial route from its landing at Al-Faw through Iraq and Turkey into Europe. This allows GBI to offer Asia-Europe route diversity that avoids Egypt • MEETS – (proposed) consortium of Middle Eastern operators, including du, Vodafone Qatar, Zajil, and Zain, has announced plans for a terrestrial route connecting to Europe. The system, known as the Middle East-Europe Terrestrial System (MEETS), would initially provide connectivity between the UAE, Qatar, Bahrain, and Kuwait over a fiber pair acquired on the GCC Interconnection Authority’s power grid. The first phase will be ready for service in early 2015 at a cost of $36 million. A second phase of the network would extend connectivity to Turkey via Iraq
Source: Telegeography 2014

Middle East – Traffic Flows
Middle Eastern International Internet Bandwidth by Region Region Gbps Percentage
Middle East Africa Asia Europe U.S. & Canada Middle East Total 242 26 268 3,677 99 6% 1% 6% 85% 2% 4,312

Synopsis: • Majority of Bandwidth from the Middle East continues to flow to Europe (85%) • Turkey’s international Internet bandwidth amounted to 60 percent of the total for the Middle East with 2.6 Tbps • Saudi Arabia and the U.A.E. continued to experience rapid increases, and have emerged as major Internet hubs in the region • Between 2009 and 2013, international Internet capacity increased 10-fold to Saudi Arabia and 7-fold to the U.A.E. Outlook: • New efforts to establish carrier-neutral colocation and internet exchange facilities • With a more vibrant local market for IP transit and local content hosting, a potential reduced dependence on individual pipe and port transactions with Europe • Along with reducing bandwidth prices, these structural changes may foster an IP transit marketplace that simply didn’t exist before in the Middle East.
Source: Telegeography 2014

Table of Contents
1. MENA Region 2. Africa 3. Europe 4. South Asia and Asia Pacific 5. Planned Submarine Cables 6. The Opportunities 7. Appendix A - Maps

Africa – cables snapshot
Submarine Network Name South Atlantic Express (SAEx)* WASACE Africa* South Atlantic Cable System (SACS)* MENA Cable System/Gulf Bridge International Silphium Algeria-Spain Africa Coast to Europe (ACE) West African Cable System (WACS) Loukkos Lower Indian Ocean Network 2 (LION2) Seychelles to East Africa System (SEAS) Libreville-Port Gentil Cable TE North/TGN-Eurasia/SEACOM/Alexandros Europe India Gateway (EIG) Hawk Ceiba-1 Saudi Arabia-Sudan-2 (SAS-2) Eastern Africa Submarine System (EASSy) IMEWE Main One GLO-1 HANNIBAL System Lower Indian Ocean Network (LION) The East African Marine System (TEAMS) SEACOM/Tata TGN-Eurasia Angola Domestic Network System (ADONES) Atlas Offshore FLAG FALCON SeaMeWe-4 Med Cable Network RFS Length Lit Capacity Max Capacity (Gbps) Year (km) (Gbps) 2015 10350 0 0 2015 9934 0 0 2014 6500 0 0 2013 2013 2013 2012 2012 2012 2012 2012 2012 2011 2011 2011 2011 2011 2010 2010 2010 2010 2009 2009 2009 2009 2008 2007 2006 2005 2005 8000 425 500 17000 14916 187 2700 1930 198 3634 15000 3400 287 330 10500 12091 7000 9800 178 1060 4900 15000 1600 1634 10300 20000 1300 1180 70 0 200 500 80 0 0 20 1010 700 100 0 0 190 3660 130 50 40 20 120 0 0 40 390 3590 20 9800 1200 0 5120 5120 1280 1280 640 40 36000 2880 2720 0 0 11800 9600 4960 2560 9600 1280 1280 0 0 320 6400 6400 1280 Submarine Network Name Saudi Arabia-Sudan-1 (SAS-1) SAFE SAT-3/WASC ALPAL-2 Atlantis-2 SeaMeWe-3 Italy-Libya FLAG Europe-Asia (FEA) Aletar Trapani-Kelibia Estepona-Tetouan Aden-Djibouti Eurafrica RFS Length Lit Capacity Max Capacity (Gbps) Year (km) (Gbps) 2003 333 10 1280 2002 13500 440 440 2002 14350 340 340 2002 312 10 160 2000 8500 40 160 1999 39000 410 460 1998 570 40 120 1997 28000 440 4680 1997 787 0 0 1995 209 32.5 42.5 1994 113 63 63 1994 266 0 0 1992 3100 0 0

*Proposed Cables Source: Telegeography 2014

Africa – cables (1/2)
Submarine Networks • For years, submarine capacity to West Africa had been provided almost exclusively by the consortium-owned, expensive and limited SAT-3 cable system, stretching from South Africa to Portugal • Main One launched service in July 2010 with a 7,000-kilometer cable connecting Nigeria and Ghana to Portugal • Glo-1 launched in October 2010 and connects Nigeria and Ghana to the United Kingdom • The West African Cable System (WACS) consortium cable entered service in May 2012 and links South Africa to the U.K., connecting several West African countries along the way. • The France Telecom-led Africa Coast to Europe (ACE) cable launched service in December 2012 and connects France and Portugal with Senegal, Gambia, Guinea, Sierra Leone, Liberia, Cote d’Ivoire, Equatorial Guinea, and Sao Tome. The cable may be extended to South Africa in the future with additional landings in the Democratic Republic of Congo, Angola, and Namibia. • Plans finally came to fruition in July 2009 with the completion of the SEACOM cable. • Further capacity became available upon completion of The East African Marine System (TEAMS) in October of the same year. • Another major project, the Eastern African Submarine Cable System (EASSy), came online in July 2010. • The recent submarine cable builds along the East African coast have turned Kenya into a regional submarine cable hub. Four cables now land in Mombasa (SEACOM, TEAMS, EASSy, and LION2 between Kenya and Mayotte). Proposed Cables • With a large number of new cables now in service along both coast of Africa, new projects are focused on alternate routes. Angola Cables and Telebras are planning to build the South Atlantic Cable System (SACS) between Angola and Brazil. Angola Cables is a consortium, comprised of incumbent Angola Telecom, ISPs MSTelcom and Movicel, and mobile operators Unitel and Startel. SACS is scheduled to enter service in the fourth quarter of 2014. • Another cable is planned for the South Atlantic as well. South African investment group eFive is planning the South Atlantic Express (SAEx) cable linking South Africa and Brazil with a branch to St. Helena. eFive hope to have the cable in service by the first quarter of 2015.

South Atlantic Cable System

South Atlantic Express Cable (Proposed cable routes)

Source: Telegeography 2014

Africa – cables (2/2)
Terrestrial Networks • In January 2013, the government of South Sudan stated its intention to deploy a fiber optic network connecting the capital Juba with submarine cables in east Africa. Internet service in the new country is currently provided almost exclusively via satellite, and terrestrial fiber links are expected to vastly reduce costs and improve reliability • In June 2010 a joint declaration was signed by Algeria, Niger, and Nigeria for the rollout of a 4,500-kilometer terrestrial fiber-optic cable from Algiers via Zinder (Niger) to Abuja (Nigeria). It is scheduled for completion in 2013. Construction of a 200-kilometer missing link of the ‘Trans-Sahara Highway’ from Assamaka (Algeria) to Arlit (Niger) is also scheduled to begin in 2013 • Ethiopia – state-owned incumbent (and monopoly) operator Ethio Telecom built a national fiber backbone in 2008. The 10,000-kilometer network fans out from the capital Addis Ababa and connects 78 towns with a capacity of STM-1, 46 towns with a capacity of STM-16, and nine towns with a capacity of 10 Gbps. Ethio Telecom has international connectivity through SEACOM via Djibouti • Tanzania – the government first launched its National Information Communication and Technology Broadband Backbone (NICTBB) in 2010, and finished the last of three terrestrial rings covering the nation in 2012. The NICTBB is the terrestrial continuation of EASSy and provides overland connections to bordering countries Kenya, Uganda, Burundi, and Zambia. Its operational management is handled by fixed line incumbent TTCL • Uganda – The National Information Technology Authority of Uganda (NITA-U) is in the process of building the National Data Transmission Backbone Infrastructure and e-Government Infrastructure (NBI and EGI) projects. These projects aim to connect all major towns in the country through a 1,500-kilometer fiber system with border connections to Kenya, South Sudan, and Rwanda • Kenya – Soliton Telmec of Kenya is managing the system for the Ugandan government • South Africa – Liquid Telecom, owned by Zimbabwe-based Econet, is constructing a large fiber network spanning Zambia, Zimbabwe, Botswana, the DRC, and South Africa, and reaching the border of Mozambique. Liquid Telecom’s network penetrated into southern DRC in 2012, reaching the cities of Lubumbashi and Kolwezi. Liquid Telecom also extended its network footprint by purchasing the East Africa fiber assets of the Altech Group, which includes international submarine cable capacity on SEACOM. These terrestrial assets consist of Kenya Data Networks, Infocom Uganda and Altech Stream Rwanda, and serve to Source: Telegeography 2014 expand Liquid’s presence in Africa from Cape Town to Nairobi

Africa – Traffic Flows
African International Internet Bandwidth by Region Region Gbps Percentage
Africa Asia Europe Latin America U.S. & Canada Africa Total 133 75 1,235 0 13 1,456 9% 5% 85% 0% 1% 100%

Synopsis: • Traffic flow is similar to the Middle East, with the majority of bandwidth from Africa flowing to Europe (85%) • The launch of SEACOM, TEAMS, and EASSy submarine cable systems on the East African Coast, and Main One, Glo-1, WACS, and ACE on the West Coast have spurred sub-Saharan Africa‘s rapid growth, increased market competition, and lowered prices • These new cables have also encouraged operators to establish PoPs for IP transit in sub-Saharan African countries: • SEACOM offers IP services in South Africa, Mozambique, Tanzania, and Kenya • Main One Cable offers IP services in Nigeria and Ghana • Telecom Italia, Level 3 and Saudi Telecom among a host of companies establishing Djibouti as a large regional IP transit hub Outlook: • New connections have helped make communications more affordable with wet capacity prices falling as competition increases. • Cross-border terrestrial networks are expanding rapidly in Africa but carriers still largely use intra-African capacity to interconnect with submarine cable stations for onward transit to Europe, rather than to facilitate the exchange of African traffic

Source: Telegeography 2014

Table of Contents
1. MENA Region 2. Africa 3. Europe 4. South Asia and Asia Pacific 5. Planned Submarine Cables 6. The Opportunities 7. Appendix A - Maps

Europe – main cables snapshot
Submarine Network Name Arctic Fibre* EUROPA* Russian Optical Trans-Arctic Cable System (ROTACS)* WASACE Europe* Hibernia Express* ALASIA* Emerald Express* MedNautilus Submarine System MENA Cable System/Gulf Bridge International Silphium Algeria-Spain Balkans-Italy Network (BIN) Tamares North Jonah Africa Coast to Europe (ACE) West African Cable System (WACS) TE North/TGN-Eurasia/SEACOM/Alexandros Europe India Gateway (EIG) Hawk Pencan-8 IMEWE GLO-1 Caucasus Cable System SHEFA-2 GO-1 Mediterranean Cable System Atlas Offshore High-capacity Undersea Guernsey Optical-fibre (HUGO) BCF-1 SeaMeWe-4 Med Cable Network Janna Lit Capacity Max Capacity RFS Year Length (km) (Gbps) (Gbps) 2015 15167 0 2015 0 2015 2015 2014 2014 2014 2013 2013 2013 2013 2013 2012 2012 2012 2012 2011 2011 2011 2011 2010 2010 2008 2008 2008 2007 2007 2005 2005 2005 2005 16373 6583 4600 5200 7000 8000 425 500 276 345 2297 17000 14916 3634 15000 3400 1400 12091 9800 1200 1000 290 1634 425 391 20000 1300 634 0 0 0 0 0 1340 1180 70 0 100 70 0 200 500 1010 700 100 0 3660 50 100 20 40 40 0 40 3590 20 0 Submarine Network Name 0 FARICE-1 0 Svalbard Undersea Cable System 0 Vodafone Malta-Sicily Cable System (VMSCS) 0 Greece-Western Europe Network (GWEN) 25600 INGRID 0 Apollo 0 Tata TGN-Western Europe 30400 SAT-3/WASC ALPAL-2 9800 FLAG Atlantic-1 (FA-1) 1200 0 Tata TGN-Atlantic Hibernia Atlantic 0 TAT-14 42000 12800 SeaMeWe-3 5120 Columbus-III Atlantic Crossing-1 (AC-1) 5120 FLAG Europe-Asia (FEA) 36000 2880 2720 0 9600 2560 1280 570 480 320 0 21760 6400 1280 0 RFS Length Lit Capacity Max Capacity Year (km) (Gbps) (Gbps) 2004 1395 100 7000 2004 2714 40 5120 2004 260 20 960 2004 700 1600 0 2004 64 0 0 2003 13000 3650 38400 2002 3578 1260 19200 2002 14350 340 340 2002 312 10 160 2001 14500 2840 26400 2001 13000 2810 20480 2001 12200 2950 15360 2001 15295 1870 8960 1999 39000 410 460 1999 9833 160 320 1998 14301 1760 4480 1997 28000 440 4680

*Proposed Cables Source: Telegeography 2014

Europe – cables (1/2) • Europe is the most ‘developed’ telecommunication market in the world, being the first user of subsea cables. This in mind, European markets have achieved a ‘peak’ and now International Internet capacity growth in Europe continued to steadily contract in 2013

• International Internet capacity grew 32 percent in 2013 to reach nearly 76 Tbps, compared to 40 percent growth in 2012 and 49 percent growth in 2011

• Intra-regional capacity comprised almost 80 percent of all international Internet connectivity connected to Europe The trans-Atlantic route’s share of international capacity connected to Europe fell slightly to 12 percent. Internet capacity grew most rapidly between Europe and Africa, rising 71 percent between 2012 and 2013

• This said however, Europe has continued to grow as an interregional Internet hub for various sub regions of the globe. For instance, in the past decade, interregional Internet capacity to Europe has grown dramatically for the Middle East, North Africa, Sub-Saharan Africa, and South Asia (see Figure: Changes in Sub regional Capacity Connected to Europe, 2003-2013). North Africa and the Middle East, in particular, are dependent on Europe for more than 80 percent of their international Internet bandwidth connectivity

Source: Telegeography 2014

Europe – cables (2/2) • Germany continued to be the largest consumer of international bandwidth in Europe, followed by the United Kingdom and France coming in third • Europe’s four Internet hubs (Frankfurt, London, Paris, and Amsterdam) continued to amass high bandwidth and traffic levels in 2013, though notably, average network utilization levels have edged slightly down in each of those cities over the past five years. Marseille and Kiev have seen more rapid international bandwidth and traffic growth in the last five years than any other major European cities, with compounded annual growth in excess of 100 percent
Country Germany United Kingdom France Netherlan ds Sweden Spain Russia Italy Belgium Austria Poland Denmark Czech Republic Hungary Ukraine 2013 28,644 20,268 18,322 15,339 6,013 4,995 4,768 4,381 3,568 2,981 2,924 2,723 2,526 1,990 1,613 CAGR 2009-13 44% 39% 44% 43% 39% 35% 57% 34% 73% 43% 57% 41% 55% 44% 89%

International Internet Bandwidth

Rank Route Netherlands 1 United Kingdom Germany 2 Netherlands 3 France - Germany United Kingdom United States 4 France - United 5 Kingdom 6 France - Spain Germany - United 7 Kingdom France - United 8 States 9 Germany - Poland 10 Germany - Sweden

2013 4,593 4,581 4,150 4,118 3,670 2,732 2,475 2,161 2,138 1,833
Source: Telegeography 2014

Top Bandwidth Routes for Europe

Europe – Traffic Flows
European International Internet Bandwidth by Region Region Gbps Percentage
Africa Asia Europe Latin America U.S. & Canada Total Europe 1,235 5,599 60,066 72 8,949 75,921 2% 7% 79% 0% 12% 100%

Synopsis: • While the U.S. remains a prominent hub of interregional Internet traffic, Europe now hosts a vibrant IP transit market in its own right, attracting international buyers from Africa, the Middle East, and Asia. • As in North America, prices in Europe continued to decline over the past year, but at a more moderate rate than the longer term trend. • Carriers dropped prices for full 10 GigE ports an average of 14 percent across the region between Q2 2012 and Q2 2013, and 29 percent compounded annually since 2010. The lowest 10 GigE prices quoted in Europe were found in hubs such as Frankfurt and London at $0.49 per Mbps. • Prices have become uniform among major hubs in western, northern, eastern, and southern Europe. • The rate of annual price declines ranged from 31 percent in Madrid to 37 percent in Amsterdam and Copenhagen.
Source: Telegeography 2014

Table of Contents
1. MENA Region 2. Africa 3. Europe 4. South Asia and Asia Pacific 5. Planned Submarine Cables 6. The Opportunities 7. Appendix A - Maps

South Asia – main cables snapshot
Submarine Network Name Australia-Singapore Cable (ASC)* APX-West* Asia Pacific Gateway (APG)* Southeast Asia Japan Cable (SJC) GBICS/MENA Cable System Asia Submarine-cable Express (ASE)/Cahaya Malaysia Dhiraagu Cable Network Europe India Gateway (EIG) IMEWE PGASCOM Tata TGN-Intra Asia (TGN-IA) Asia-America Gateway (AAG) Cable System Batam Dumai Melaka (BDM) Cable System JAKABARE SEACOM/Tata TGN-Eurasia Matrix Cable System WARF Submarine Cable Dhiraagu-SLT Submarine Cable Network FLAG FALCON Transworld (TW1) Bharat Lanka Cable System SeaMeWe-4 Tata TGN-Tata Indicom EAC-C2C i2i Cable Network (i2icn) SAFE APCN-2 SeaMeWe-3 FLAG Europe-Asia (FEA) RFS Year 2015 2014 2014 2013 2012 2012 2012 2011 2010 2010 2009 2009 2009 2009 2009 2008 2007 2007 2006 2006 2006 2005 2004 2002 2002 2002 2001 1999 1997 7500 1253 15000 12091 264 6700 20000 353 1330 15000 1055 680 850 10300 1300 325 20000 3175 36500 3200 13500 19000 39000 28000 Length (km) 4800 4600 10400 8900 Lit Capacity (Gbps) 0 0 0 1200 1000 0 0 700 3660 160 1900 1880 80 160 0 170 10 20 390 60 20 3590 640 3260 320 440 3840 410 440 Max Capacity (Gbps) 0 0 0 28800 5280 0 0 2880 9600 0 9600 6000 1280 1280 0 2560 1280 160 6400 1280 960 6400 47200 30550 8400 440 21120 460 4680

*Proposed Cables Source: Telegeography 2014

South Asia – cables • South Asia derives most of its international bandwidth through submarine cables. These cables provide both intra-Asia connectivity and links to the United States and Europe. Between 2008 and 2012, the lit capacity of intra-Asia submarine cables increased at a compounded annual growth rate of 28 percent, from 5.4 Tbps to 14.4 Tbps

• India, which has exhibited some of the largest bandwidth growth rates in Asia, saw rapid price declines over the past year. Between 2011 and 2012, the median monthly STM-1 lease price for Mumbai–Singapore fell 43 percent to $11,000 and 39 percent compounded annually since 2009. Chennai-Singapore saw prices decrease 24 percent over the past year to $15,000 and 43 percent compounded annually since 2009. These sharp reductions continue to narrow the price discrepancies between eastern and southern Asia. Mumbai-Singapore is now only 2.8 times the price of a connection on Hong Kong-Singapore, compared to 4.5 times in Q4 2009. Similarly, Chennai–Singapore is now 4.7 times as expensive as Hong Kong-Tokyo, compared to 11 times in 2009

• Price erosion between India and East Asia is enabled by the relatively low incremental cost of supply available on the i2i Cable Network, TGN-Tata Indicom Cable, and SeaMeWe-4, as well as by growing competition between service providers

Source: Telegeography 2014

South Asia – Bandwidth Consumption and Proposed Cables • China was the largest consumer of international bandwidth in South Asia, followed by Japan and Singapore coming in third • The intra-Asian bandwidth market is characterized primarily by submarine cable capacity and includes routes between both mature and developing markets. Key cities such as Tokyo, Hong Kong, and Singapore have long been hubs where carrier networks interconnect, while growing cities in India and South Asia are becoming more competitive as service providers extend to them a greater level of international connectivity • Cable upgrades and an increased amount of competition have resulted in price erosion throughout the region in 2012. Wavelength prices on major routes saw significant reductions, falling an average of 33 percent between 2011 and 2012 and ranging from $23,250 on Hong Kong-Tokyo to $185,000 on MumbaiSingapore. • Two major intra-Asia systems are slated to enter service by 2014: the Southeast Asia Japan Cable (SJC) and Asia Pacific Gateway (APG) consortium cables. These systems will have similar designs to the TGN-IA cable, which utilizes a trunk-and-branch configuration as opposed to the ring structure used in the previous generation of systems. • Several Asian carriers and Google built the 8,900-kilometer SJC system. The cable links Brunei, China, Japan, the Philippines, and Singapore. SJC was launched in June 2013 at a cost of approximately $400 million. • The APG cable, which is being built by a consortium of eleven Asian carriers and Facebook, will connect China, Hong Kong, Japan, South Korea, Malaysia, Taiwan, Thailand, Vietnam, and Singapore. The cable will cover 10,400 kilometers and is expected to enter service in the third quarter of 2014.
Rank 1 2 3 4 5 6 7 8 9 10 Country China Japan Singapore Hong Kong Taiwan India Korea, Rep. Malaysia Philippines Vietnam 2011 3,606.6 3,239.0 1,793.1 1,868.1 928.0 697.2 706.3 476.6 253.1 209.4 2008-12 2012 CAGR 5,177.5 4,538.9 2,748.8 2,724.3 1,235.6 1,064.6 961.9 727.1 421.6 354.0 Subsea Cable APCN-2 FLAG/REACH North Asia Loop EAC-C2C Tata TGN-Intra Asia Asia Submarine-cable Express (ASE) FLAG Europe-Asia SeaMeWe-3 Total Intra-Asia APCN 2011 2012 3,840 3,840 2,660 2,820 1,900 3,780 3,260 1,900

53% 44% 73% 52% 45% 83% 37% 71% 66% 89%

800 440 440 400 410 12,060 14,430 Source: Telegeography 2014

International Internet Bandwidth

Top Intra – Asian Bandwidth Routes

Asia Pacific – main cables snapshot
Submarine Network Name Australia-Singapore Cable (ASC) APX-East Hawaiki Cable APX-West Asia Pacific Gateway (APG) Solomons Oceanic Cable Network Southeast Asia Japan Cable (SJC) Interchange Cable Network (ICN) Tonga Cable GBICS / MENA Cable System Asia Submarine-cable Express (ASE)/Cahaya Malaysia Dhiraagu Cable Network Europe India Gateway (EIG) IMEWE Honotua PGASCOM HANTRU1 Cable System Tata TGN-Intra Asia (TGN-IA) Asia-America Gateway (AAG) Cable System American Samoa-Hawaii (ASH) SEACOM/Tata TGN-Eurasia Pipe Pacific Cable-1 (PPC-1) Matrix Cable System Telstra Endeavour Gondwana-1 WARF Submarine Cable Dhiraagu-SLT Submarine Cable Network Batam-Rengit Cable System (BRCS) Max Length Lit Capacity Capacity RFS Year (km) (Gbps) (Gbps) 2015 4800 0 0 2015 12500 0 0 2015 0 0 2014 4600 0 0 2014 10400 0 0 2014 900 0 0 2013 8900 1200 28800 2013 1238 20 3200 2013 827 20 320 2012 1000 5280 2012 7500 2012 1253 2011 15000 2010 12091 2010 4500 2010 264 2010 3500 2009 6700 2009 20000 2009 4250 2009 15000 2009 6900 2008 1055 2008 9125 2008 2151 2007 680 2007 850 2007 63 0 0 700 3660 20 160 0 1900 1880 1.1 0 500 170 160 20 10 20 10 0 0 2880 9600 640 0 0 9600 6000 1.1 0 0 2560 1280 640 1280 160 0 Max Length Lit Capacity Capacity Submarine Network Name RFS Year (km) (Gbps) (Gbps) FLAG FALCON 2006 10300 390 6400 Transworld (TW1) 2006 1300 60 1280 Bharat Lanka Cable System 2006 325 20 960 Australia-Papua New Guinea-2 (APNG-2) 2006 1800 0 0 SeaMeWe-4 2005 20000 3590 6400 Tata TGN-Tata Indicom 2004 3175 640 47200 Thailand-Indonesia-Singapore (TIS) 2003 968 30 320 EAC-C2C 2002 36500 3260 30550 i2i Cable Network (i2icn) 2002 3200 320 8400 SAFE 2002 13500 440 440 APCN-2 2001 19000 3840 21120 Australia-Japan Cable (AJC) 2001 12700 640 4000 Southern Cross Cable Network (SCCN) 2000 30500 2600 9600 SeaMeWe-3 1999 39000 410 460 SeaMeWe-3 1999 39000 410 460 FLAG Europe-Asia (FEA) 1997 28000 440 4680

*Proposed Cables Source: Telegeography 2014

Asia Pacific – cables • Lit capacity on submarine cables connected to Australia rose in 2012, after remaining constant from 2010 to 2011. Southern Cross, already the largest cable by lit capacity in the sub region, has upgraded its network in several phases • The Australia-Japan Cable (AJC) doubled its lit capacity to 640 Gbps by upgrading to 40 Gbps technology • Pipe Pacific Cable-1 (PPC-1), which currently has a lit capacity of 200 Gbps, plans to upgrade the system with 100 Gbps technology, which will dramatically increase the cable’s lit capacity to 3 Tbps. • Even with the flurry of upgrades, the Australia & Pacific subregion is a hotbed of potential new submarine cables. There is strong interest in an additional cable from western Australia to Southeast Asia since only SeaMeWe-3 connects these two regions. • The western coast of Australia is home to two similar but unrelated cable projects: Australia Singapore Cable (ASC) and APX-West. ASC hopes to enters service by Q1 2015. APX-West was announced at the beginning of 2013 and would connect Perth, Jakarta, and Singapore. APX-West has a target in-service date of Q4 2014. Even with strong interest adding diversity to this route, there is likely not enough demand to support more than one new cable on the route • Trident Subsea Cable hopes to link western Australia to Singapore via Indonesia by Q2 2015. Trident plans to interconnect with existing dark fiber pairs on the Matrix Cable to create a seamless link. • Both APX-East and Hawaiki hope to enter service in 2015, and aim to connect Sydney, Auckland, Hawaii, and the west coast of the United States. Hawaiki also plans to install several branching units to enabling future connections to various South Pacific islands. • In addition to APX-East and Hawaiki’s plans to connect Australia and New Zealand across the Tasman sea, one other project is focused purely on the transTasman route. The Tasman Global Access (TGA) cable, announced in February of 2013, would connect Sydney and Auckland. Funded by Telecom New Zealand, Telstra, and Vodafone, the cable is expected to enter service in 2015. The prospects for the TGA cable going forward appear positive since all three owners have significant capacity needs on their own, decreasing the need for outside capacity sales to help fund the system.
Source: Telegeography 2014

Asia Pacific – Pricing • Growing international bandwidth demand between Australia, New Zealand, and the U.S. has been fulfilled primarily through capacity upgrades to existing systems • Price reductions reflect integration of newer transmission equipment and a declining cost of incremental capacity. Nevertheless, geographic isolation, distance, and the relatively small number of providers that offer international capacity between the countries still keep prices high and the observed rate of decline less than on other submarine cable routes

Source: Telegeography 2014

South Asia and Asia Pacific – Traffic Flows
Outlook Asian: • The outlook for bandwidth prices on intra-Asian routes portends steep decline • Demand is robust and shifting towards higher capacities, evidenced by the number of system upgrades and the number of planned cables in development • On routes where new builds and upgrades are both undertaken, price declines will likely be more rapid, similar to what was seen in 2012 • Construction of new intra-Asian cables does not reflect a pending capacity shortage on existing cables. Rather, it shows that providers are increasingly interested in owning their own capacity directly instead of incrementally buying it in the wholesale market. This is evidenced in the shift towards consortium cables, which allow carriers to achieve diversity and take advantage of current low unit costs. Capacity owners on existing cable systems will likely price match their competitors, furthering price declines into 2013 and beyond Asia Pacific: • Price declines have been enabled by the lower unit costs that continued capacity upgrades to cables linking to Australia over the past few years brought • With bandwidth demand continuing to grow, further upgrades to current systems connecting Australia to Asia and the U.S. are underway. Between the U.S. and Australia price declines will remain more moderate than other submarine cable routes until a new cable system is constructed, and greater competition is introduced.

Source: Telegeography 2014

Table of Contents
1. MENA Region 2. Africa 3. Europe 4. South Asia and Asia Pacific 5. Planned Submarine Cables 6. The Opportunities 7. Appendix A - Maps

Planned Submarine Cables
Region/Cable Name Sub-Saharan Africa South Atlantic Cable System (SACS) South Atlantic Marine System (SAMS) TechTeleData (TTD) Cable Europe-Asia SeaMeWe-5 Asia Africa Europe (AAE)-1 Asia Malaysia-Cambodia-Thailand Cable Owner(s) Angola Cables SEACOM TechTeleData Consortium Consortium Ezecom, Telekom Malaysia Construction Cost (millions USD) RFS Length Capacity (Initial/Potential)Landing Countries 6,500 2,500 2,500 n.a. n.a. 1,425 800 Gbps/40 TbpsAngola, Brazil n.a.South Africa n.a.South Africa n.a.n.a. n.a.n.a. n.a.Cambodia, Malaysia, Thailand China, Hong Kong, Japan, Korea, Rep., Malaysia, Singapore, Taiwan, n.a./54.8 Tbps Thailand, Vietnam India, Malaysia, Oman, Sri Lanka, n.a. UAE Supplier n.a. n.a. n.a. n.a. n.a. n.a.

n.a. Q2 2015 n.a. Q4 2014 n.a. Q4 2014 n.a. 2016 n.a. Q1 2016 $80 2015

Asia Pacific Gateway (APG) Bay of Bengal Gateway Trans-Atlantic Hibernia Express Emerald Express Trans-Pacific New Cross Pacific (NCP) Cable System Australia and South Pacific Interchange Cable Network (ICN) Australia-Singapore Cable (ASC) Tasman Global Access (TGA) Cable

Consortium Consortium

$500 Q3 2014 10,400 n.a. 2014 8,000

NEC Alcatel

Hibernia Networks Emerald Networks

$250 $300

2014 2014

4,600 5,200

n.a./25.6 TbpsCanada, United Kingdom n.a./40 TbpsIceland, Ireland, United States China, Korea, Rep., Japan, Taiwan, n.a. United States

TE Subcom TE Subcom

Consortium

n.a. Q4 2015 15,000 January 2014 March 2015 $160 $31 $60 2015

n.a.

Interchange Holdings, Nambawan Super, Vanuatu Post ASC International Telecom New Zealand, Telstra, Vodafone

1,238 4,800 2,300

450 Mbps/3.2 TbpsFiji, Vanuatu n.a./24 TbpsAustralia, Indonesia, Singapore n.a./30 TbpsAustralia, New Zealand

Alcatel Alcatel n.a.

Source: Telegeography 2014

Planned Submarine Cables
Region/Cable Name APX-West APX-East Hawaiki Owner(s) SubPartners, Indosat SubPartners Hawaiki Cable Limited Construction Cost (millions USD) RFS Length Capacity (Initial/Potential)Landing Countries 4,600 n.a./32 TbpsAustralia, Indonesia, Singapore n.a./19.2 TbpsAustralia, New Zealand, United States n.a./20 TbpsAustralia, New Zealand, United States Australia, Indonesia, Singapore (via fiber pairs on n.a./16 Tbps Matrix Cable System) Supplier TE Subcom TE Subcom TE Subcom $200 Q1 2015

$300 Q4 2015 12,500 $350 Q4 2015 10,200

Trident Subsea Cable Latin America and Caribbean

Trident Subsea Cable

$400 Q2 2015

n.a.

n.a.

America Movil Submarine Cable System-1 (AMX-1) America Movil

$1,100

Jul-09 17,500

Brazil, Colombia, Dominican Republic, Guatemala, n.a./50 Tbps Mexico, United States

Alcatel

Pacific Caribbean Cable System (PCCS) Polaris Seabras-1 Cable of the Americas Mediterranean Algeria-Spain Didon Other Arctic Fibre

Consortium LinkBermuda Seaborn Networks Angola Cables Algerie Telecom Orange Tunisia, Tunisiana

n.a. Q3 2014 n.a. Q1 2015

6,000 n.a.

Aruba, Ecuador, Panama, Puerto Rico, United States, n.a./80 Tbps U.K. Virgin Islands Alcatel n.a.Bermuda, Canada n.a. n.a./40 TbpsBrazil, United States n.a./20 GbpsBrazil, United States n.a.Algeria, Spain n.a.Italy, Tunisia Alcatel n.a. n.a. Alcatel

n.a. Q1 2015 10,500 n.a. n.a. $20 2015 10,900 2014 April 2014 500 170

Arctic Fibre, Inc.

$640 Q4 2015 15,167 $980 Q4 2015 16,373

1.04 Tbps/32 TbpsCanada, Japan, United Kingdom, United States n.a./60 TbpsJapan, Russia, United Kingdom

n.a. TE Subcom

Russian Optical Trans-Arctic Cable System (ROTACS) Polarnet

Source: Telegeography 2014

Table of Contents
1. MENA Region 2. Africa 3. Europe 4. South Asia and Asia Pacific 5. Planned Submarine Cables 6. The Opportunities 7. Appendix A - Maps

Africa: Virgin Market • The continent of Africa is the world's second largest continent after Asia. • Africa is home to six of the ten fastestgrowing countries in the world • The projected economy growth rate of 5.3% next year, from 4.8% in 2013. • Spending time on the internet could add US$300Billion to the economy by 2025 • More than 720million have mobile phones. • 167million already use the internet • 52 million are already on Facebook • Internet penetration is low at 16% of the one billion people on the continent.
Source McKinsey & Co.

Neutral Infrastructure

• Operator Agnostic Cable System • Transit Landing Stations

Table of Contents
1. MENA Region 2. Africa 3. Europe 4. South Asia and Asia Pacific 5. Planned Submarine Cables 6. The Opportunities 7. Appendix A - Maps

Appendix A - Maps

MENA

Appendix A - Maps

AFRICA

Appendix A - Maps

EUROPE

Appendix A - Maps

SOUTH ASIA/FAR EAST

Appendix A - Maps

AUSTRALIA

The Naked Truth about Submarine Cables!
By Amr Eid Chief Commercial Officer

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