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New Challenges for Carriers in Caspian Region. Alexander Stolyarov Deputy of Head, Wholesale Department. 28th April 2011, Istanbul, Turkey. Agenda. I. Telecom market perspectives. 3-4. Major wholesale segments. II. 5-7. TTK & new challenges. III. 8-11. 2. 2. Economy Perspectives.
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New Challenges for Carriers in Caspian Region Alexander StolyarovDeputy of Head, Wholesale Department 28th April 2011, Istanbul, Turkey
Agenda I Telecom market perspectives 3-4 Major wholesale segments II 5-7 TTK & new challenges III 8-11 2 2
Economy Perspectives Economy Growth in CIS & Caspian Regions, GDP in $billion • CIS & Caspian regions survived the strong impact of economic turbulence in 2008 - 2009 • Russian GDP dropped on -7.0% in 2009, while it grew on +4.9% in 2010 • All countries will continue stable growth in next five years Fast economic development creates the positive future for telecom carriers Source: International Monetary Fund 3
Telecom Markets Telecom Markets in CIS & Caspian Regions, $billion • Impact of economic crisis was indirect for telecom industry in 2008 - 2009 • Development rate of telecom markets decreased, but not stopped in many countries • Russian telecom market increased about 10% in 2010 Telecom markets continued the growth in Caspian region in 2010 Sources: Business Monitor, Telecom Administrations 4
Major Market Segments Telecom Revenue Structure in Russia • Actual change of market structure is not so fast in many countries • Voice is still the “King”, including fixed and mobile ones • While revenue from fixed voice services is declining • Data communications are the fastest growing segment Voice, data & wholesale transit cover 95% of market revenue Source: RosBusiness Consulting 5
International Wholesale Segments I. IP Capacity in CIS & Caspian Regions max. $100-150 per Mbps • IP is the major driver for capacity demand • Revenue grew 4 times to over $200 million in CIS & Caspian regions • Major markets: Russia, Turkey, Ukraine, Kazakhstan • Capacity increased 20 times to 1,9 Tbps, while average bandwidth prices decreased 5 times for past 5 years Source: TeleGeography & TTK estimations 6
International Wholesale Segments II. Voice in CIS & Caspian Regions • Large customer base (2010): • main telephone lines > 120 millions • mobile subscribers > 470 millions • Region absorbs ~ 12 billion minutes of international traffic • Incoming traffic essentially prevails outgoing one • ~ 30% of outgoing traffic is VoIP International Telecom Traffic, billion minutes Source: TeleGeography, RCC & TTK estimations 7
Market Challenges • Rapid growth of international bandwidth due to increasing demand for IP capacity • Relative price per Mbps is still decreasing dramatically • Lack of infrastructure and needs for network development in some countries • VoIP traffic growth TTK approach: Development through technological innovations 8
TTK Regional Focus • Major CIS interconnections: • Ukraine– 35 Gbps • Belorussia – 25 Gbps • Kazakhstan – 25 Gbps • Azerbaijan – 10 Gbps • European IP up-streams230 Gbps 9
Growing Capabilities Further growth of transit capabilities will be provided by: • 10G to 40G migration at main backbone routes • Shift of 10G systems to SDH routes with rapidly growing demand • Implementation ofWDM systems • Development 10GEIP MPLS > 1 Tbps 10
NGN IP MPLS 10GE IP 10GE SDH DWDM10G&40G TTK Services • Long-Distance Telephony • IP VPN • EPL • IP Access • NPL & IPL 11
Thank you for attention! 8 Testovskaya Str.,Moscow, Russia, 123317T:+7 (495) 784 6670F:+7 (495) 7846671E: internationalsales@ttk.ruwww.ttk.ru