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Update on TENET

iWeek 15 -17 September 2010. Update on TENET. Duncan Martin CEO: TENET. What is TENET?. Non-profit (Section 21 company) Operates the South African NREN Currently: 96 campuses of 46 institutions Some remote campuses serviced by Telkom Recovers costs from institutions

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Update on TENET

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  1. iWeek 15 -17 September 2010 Update on TENET Duncan Martin CEO: TENET

  2. What is TENET? • Non-profit (Section 21 company) • Operates the South African NREN • Currently: 96 campuses of 46 institutions • Some remote campuses serviced by Telkom • Recovers costs from institutions • Around R130m per year • No donations or government grants • Member of ISPA • Settlement-free peering at CINX and JINX

  3. International b/w cost to institutions

  4. International b/w history

  5. This is thanks to… • UbuntuNet’s formation and London ops • SEACOM’s special 10 Gbps deal for TENET • DST’s SANReN backbone deployment • ICASA’s issuing of ECNS and ECS licenses • Following Altech Autopage Cellular’s celebrated court cases However: high capacity backhaul still has to reach many campuses

  6. What is UbuntuNet?

  7. UbuntuNet Alliance for Research and Education Networking • The regional REN in eastern and southern Africa • Non-profit association • Head office in Lilongwe, Malawi • Incorporated in 2006 in the Netherlands • Now also incorporating in Malawi

  8. UbuntuNet Members Eb@le, DRC EthERNet, Ethiopia KENET, Kenya MAREN, Malawi MoRENet, Mozambique RwEdNet, Rwanda SomaliREN, Somalia SUIN, Sudan TENET, South Africa TERNET, Tanzania RENU, Uganda ZAMREN, Zambia

  9. UbuntuNet’s London PoP • Located in Telecity, London • since March 2008 • Member NRENs connect to the POP • UbuntuNet interconnects with • Géant (The European regional REN) • More than 300 peers at the London Internet Exchange (LINX) • Transit purchased from NTT • TENET operates the PoP for UbuntuNet

  10. What is SANReN?

  11. PTA JNB BFN DBN CPT EL PE • South African National Research Network • DST funds capital cost • CSIR (Meraka) contracts with suppliers and “owns” it • TENET operates it • Institutions bear operating costs • 10 Gb/s Backbone ring • Commissioned 1 Dec 2009 • Extensions planned to remote PoPs • Metropolitan access networks: • Johannesburg • Soon in Cape Town, Durban, Pretoria

  12. TENET’s SEACOM deal

  13. Mid 2007 • Current Telkom contract nearing its end • Change is in the air… • Electronic Communications Act replaces Telecoms Act • 2nd network operator licensed (Neotel); ISPs gearing up • UbuntuNet Alliance establishes London hub • Government envisages deploying national research network • TENET decides to • acquire engineering and service management capacity • operate its own routing infrastructure • call for tenders for underlying network capacity • Interconnect internationally via UbuntuNet

  14. Sept 2007 • SEACOM offers TENET 10 Gb/s circuit between Johannesburg and Sicily • Indefeasible Right of Use for 20 years • Commissioning planned for June 2009 • 20 months away • $23 million, payable upon commissioning • Annual O & M charge of 3%.

  15. How do we find $23 million? • Tried to raise loans from bigger universities • Complete failure • Idea: Exploit the recurring bandwidth budgets! • $5.8 million p.a. being spent on international b/w • Can we pay for the IRU over 6 years? • SEACOM says OK! • Option to pay in 6 equal annual payments • 14% p.a. financing charge • SEACOM asks: What guarantees can TENET provide?

  16. Oct 2007 • TENET calls for “SEACOM CIR Bids” • Invitation to all institutions • Hey Mr. IT Director! How many “SEACOM Bid Units” would you like? • Each “Bid Unit” entailed • Preferential ordering rights for 10 Mb/s on SEACOM • Obligation to pay six annual amounts of $7,000 • (Works out at < $60 per Mb/s per month) • TENET obliged to repay in services or cash • Breakeven point: 750 Units

  17. Outcome of Bid Process • A NO-BRAINER! • 950 CIR Units bid • $29 million committed by 27 institutions

  18. Final contract • SEACOM accepted the 27 Bids as sufficient guarantee • Meanwhile negotiations continued… • Endpoints: Mtunzini and Telecity, London • Price: Drops to $20 million • Capacity Purchase Agreement signed on 2 November 2007

  19. Later (just before commissioning)Loan from the DBSA • Development Bank of Southern Africa grants TENET loan of R154 million (equivalent to $20m). • DBSA also accepted the 27 Bids as sufficient guarantee. • Loan enabled TENET to fully pay SEACOM. • Institutions’ annual obligations converted from US dollars to SA Rand.

  20. The advent of dark fibre • 1st Mtunzini Backhaul • IRU purchased from Dark Fibre Africa • 160 km; 6 dark fibre pairs • 3 lambdas in use on one fibre pair • Signal amplification at Umhlanga Rocks • Was ready for SEACOM launch in Jul 2009 • TENET had required EC licenses • Just in time • Thanks to Altech Autopage court rulings

  21. 2nd Backhaul: Neotel 1st Backhaul: DFA Mtunzini Backhaul SEACOM cable PTA JNB Mtunzini (landing station) BFN DBN CPT EL PE

  22. Further dark fibre projects nearing completion • UZULU Main Campus (kwaDlangezwa) • 30 kms south to Mtunzini • UNISA Campus in Florida • Redundant routes to Wits and Rosebank • Wits Main - Wits Baragwanath – UJ Soweto • Spur shared by Wits and UJ • Monash SA (Roodepoort) • Redundant routes to Wits and Rosebank • Amplification at UNISA Florida

  23. TENET needs • Access networks in • Bloemfontein • East London • Nelspruit • Polokwane • Port Elizabeth • Vanderbijlpark • Co-build partners….

  24. Thanks for listening!

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