SEACOM Connecting East Africa to the world

Transcription

1 Jean-Louis Parmentier SEACOM Connecting East Africa to the world Chief Operating Officer, SEACOM Ltd Partager le Savoir Jordan, Marsh 3 rd, Feb 2010

2 Iden4fying the need Africa has been starved of a key founda4on to social and economic growth - high capacity, cheap broadband Where is Africa now? Africa is the least penetrated concnent in the world East Africa has been solely dependent on oven costly and high latency satellite, uncl now Broadband for Africa Every 10% increase in high- speed Internet conneccons in developing countries resulted in an increase of 1.3% in economic growth 1 Broadband is to the 21 st Century what railways were to the 20 th Century 1 Broadband is the foundacon of economic growth Africa must move fast, despite the excitement of SEACOM, the digital divide is gemng larger, not smaller Source: Broadband penetracon WBIS WorldBank Q Feb 2010

3 SEACOM snapshot SEACOM is a privately funded African company, offering a 1.28Tb/s submarine fiber op4c cable system linking Africa to Europe and Asia via the Middle East SEACOM is open for business and ready to supply complete solu:ons for Africa s Broadband on Demand needs SEACOM s drivers Wholesale provider of bandwidth Fibre topography Deliver infrastructure support for the growth of the ICT sector, e.g. BPO, call centers, educacon Be commized to the principles of open and equitable access to broadband Facilitate the development of high volume, low cost market encouraging new industries to emerge, scmulacng further demand Compliment GSM and fixed line naconal carriers by providing low cost high capacity bandwidth and addiconal redundancy Be fully funded & majority African owned (76.25%) 3 Feb 2010

4 Raising capital SEACOM sought funding for the cable project through a combina4on of debt and equity Equity 76.56% African Industrial PromoCon Services 26.56% Venfin 25% Convergence Partners 12.5% Shanduka 12.5% No naconal telecommunicacons operators Strategic value add Sector knowledge and relaconships Financial backing - Proven access to equity and debt funding 23.44% InternaConal Herakles Telecom Venture/Seed Capital Mega- Project Developers Management expercse Venture capital funded in 2006 & 2007 for development and long lead items Debt Nedbank and Investec Fully and irrevocably funded in November 2007 for project capital and debt (provided by Nedbank Capital and Investec Bank) and operaconal actualizacon; Project ran on budget and schedule 1month delay in South- East Africa. 4 Feb 2010

5 Defining the product In order to address Africa s broadband needs, SEACOM s business case had to focus on an open access, low cost service that travels right to the point of need not just the shoreline 1 2 Affordability Accessibility Core ideas behind SEACOM s business case Target those in need East coast Ensuring open access policy consistent with the Kigali protocol Under no circumstances hinder the progress of healthy compectors The Death of distance through a single price Providing services to medical & educaconal insctucons, partnering with Ubuntunet & TENET True end- to- end solucon from London to Johannesburg, from Mumbai to Nairobi Focus in gemng backhaul to landlocked countries in need Working in harmony with exiscng channels and building redundancy Applying best praccce risk management & disaster recovery across the full value chain & 24 hour global support Without true open access, Africa will limit the poten:al of tomorrow s unkown innovators 5 Feb 2010

6 Our approach to overcoming the barriers ATer financial closure, but prior to construc4on of the cable, SEACOM had to develop a strategy for addressing the various challenges SEACOM s approach to the various challenges Regulatory Socio- policcal Working with governments to find solucons to problems, sharing knowledge and best praccce across the sovereign nacons Obtaining permits from countries who have never dealt with an undersea cable before Each decision and signed document impacted mulcple countries with various tax laws that impacted each leg of the cable differently Ensuring the highest precauconary measures were in place at our landing stacons and along the ship s fiber cable laying routes, at the expense of Cme where needed Environ- mental SEACOM completed all marine and onshore survey work to ensure that best of class environmental praccces were being implemented during construccon (e.g. porcons of the cable were carefully laid by hand to ensure no damage to coral reefs [Equator principles]) 6 Feb 2010

7 Construc4on phase SEACOM was the first to complete construc4on on the eastern Africa route to Europe and India Branching Unit 1 (Off Maputo) Entering the Water Off the Stern of Tyco Resolute 10 Feb 2009 Dar Es Salaam Cable Landing at Silver Sands Sta4on 17 Feb 2009 Mtunzini Sta4on Modules Being Placed on Founda4on - 16 Feb 2009 The Third and Final Cable Ship Tyco Responder Loaded and Steaming to Mumbai to Begin Cable Lay 17 Feb Feb 2010

8 Deployment Underway: Field activities in Mtunzini, South Africa Maputo Landing- February 2009 Mombasa station January 2009 Horizontal Drilling at the Mtunzini landing station- February Feb 2010

9 Construc4on phase View on the inside of a cable landing sta4on Mumbai Landing Sta4on Installa4on 16 Jan 2009 Mumbai Power Feed Equipment 18 Jan 2009 Mumbai Terminal Equipment Being Installed 18 Jan 2009 Mombasa Sta4ons In Place - 17Jan 09 Djibou4 Terminal Equipment Being Installed 9 Feb 2010

10 Construc4on planning Progress Dec 2009 Network Schematic Deployment Information RFCS 23 rd July 2009 are the accve parts of the network in South east Africa : Currently over direct Mumbai- Marseilles SMW4 capacity CompleCon Med & Red Sea Q Feb 2010

11 Achievements & challenges Jan 2010 Activated Capacity More than 160 Gb/s lighted over the various segments More than 37 Gb/s sold More than 27 Gb/s activated Europe Africa More than 0,5 Gb/s Africa-Africa Availability Wet cable : 100% Terrestrial backhaul : Fiber over power lines : > 99,9% Underground fibers non redundant Worst 3 months >97,8% Other > 99% With route protection : > 99,9% 11 Feb 2010

12 Abundant Bandwidth Will Bring Near-term Change to Africa Educational program SEACOM has strong company and shareholders commitments to Educational program initiative in Africa Thanks to broadband access, information, specifically Educational content, is widely and freely available SEACOM is offering reduced cost of international bandwidth for Universities and Research Institutions SEACOM has extended the below cost bandwidth offer to the NREN of Southern and Eastern African Universities as well as to ubhuntunet Tenet Kenet Provision University Dar Es Salaam (5 000% cost reduction in South Africa) for non commercial and Acceptable Usage purposes 12 Feb 2010

13 Immediate impacts of SEACOM: Kenya in focus 13 Feb 2010

14 Immediate impacts of SEACOM on Mozambique 14 Feb 2010

15 Immediate impacts of SEACOM: Uganda in focus 15 Feb 2010

16 SEACOM s coverage and impact on Tanzania 16 Feb 2010

17 Immediate impacts of SEACOM: Rwanda in focus 17 Feb 2010

18 Immediate impacts of SEACOM: South Africa 18 Feb 2010

19 SEACOM way forward SEACOM s strategy going forward will be to con4nue to pursue various business areas in order to fulfill Africa s unmet broadband needs Addressing the needs of bandwidth hungry African economies Removing na4onal and interna4onal infrastructure bodlenecks Facilita4ng research & educa4on through discounted bandwidth Suppor4ng the east and southern African economic growth by significantly lowering communica4ons costs Broadband demand is not going to taper out.it is going to concnue on this curve The full value chain will be opened up allowing for low cost access right from the internaconal long haul to the last mile to all Internet Service Providers There will be significant M&A accvity as more services get bundled in the quest to customize solucons and minimize churn SEACOM is commized to share this journey 19 Feb 2010

20 Thank You 20 Feb 2010