Eastern Africa Submarine Cable System (EASSy)

1. Eastern Africa Submarine Cable System (EASSy) CLOSING THE FINAL LINK AROUND AFRICA

2. Overview • Introduction • Current Scenario • The Opportunity • System Configuration and Global Connectivity • Potential Investors • Key features of the proposed System • Benefits to Africa • Project Costs • Project Status • Planned Project Milestones

3. Introduction • Liberalisation of the telecommunications sector has led to evolution of internet, VOIP, mobile market & integrated network solutions. • It is therefore necessary that an appropriate infrastructure is developed to carry the rapidly increasing traffic. • The Eastern Africa Submarine Cable System has been conceived in this context. Eastern Africa Submarine Cable System

4. Current Scenario • West Africa covered by SAT-3/WASC & Atlantis-2 • Currently no other cable initiative for East Africa • Eastern Africa Region exclusively reliant on Satellite • Limited satellite capacity, earth station and terrestrial infrastructure in region • Increase in demand for intra-regional and global connectivity, data services and VOIP • Low demand for telecommunications systems globally – buyers-market in submarine cable industry!

5. Current Scenario • NEPAD has identified and endorsed the East African cable as a priority project. • The proposed East African Submarine Cable will provide the last link to completely encircle Africa by high capacity optic fibre telecommunications networks Eastern Africa Submarine Cable System

6. The Opportunity • Hi quality broadband international connectivity reaching Madagascar, Eastern & Southern Africa • Restoration for EASSy via existing submarine cables such as SAFE, Sea-Me-We-3, SAT-3 • Access to untapped emerging markets in voice, mobile and Internet traffic • Reduce Region’s dependency on Satellite • Lower network costs at higher bandwidth Eastern Africa Submarine Cable System

7. Eastern Africa Submarine Cable System (EASSy) Zanzibar Mahajanga Mtunzini Eastern Africa Submarine Cable System

8. Malaba Zanzibar Eastern Africa Submarine Cable System

9. Global Connectivity SEA ME WE 3 20 SAT-3/WASC SAFE 1 2 3 4 16 23 8 7 17 6 5 9 25 10 22 24 21 11 19 15 14 18 13 12 Eastern Africa Submarine Cable System

10. Japan Germany Portugal Egypt Malaysia India Senegal Brazil Australia South Africa Strategic Global Coverage 56 Countries SEA-ME-WE-3 (35Countries) ATLANTIS-2 (6 Countries) EASSy (11 Countries) SAFE (5 Countries) SAT-3 / WASC (11 Countries)

11. Investment Interest • The following (11) parties have signed the Memorandum of Understanding (MOU) for the development of the system: • Telkom Kenya • Zanzibar Telecom • Uganda Telecom • MTN Uganda • TDM Mozambique • Telkom South Africa • Djibouti Telecom • Sentech • Telecom Malagasy • Rwanda Telecom • Botswana Telecom Eastern Africa Submarine Cable System

12. Signed LOI & C&NDA Swaziland Lesotho Ethiopia Not Signed LOI&C&NDA Zambia Zimbabwe Eritrea Sudan Seychelles Burundi DR Congo Somalia Comoros Potential Participants from other African Countries Eastern Africa Submarine Cable System

13. Potential International Investors The following International Carriers among others have shown interest in the project and their participation is expected in the form of investment. • Belgacom – Belgium, BT - UK • Teleglobe – Canada ,Telenor - Norway • AT&T & MCI - USA • France Telecom ,KPN - Netherlands • Cable & Wireless and Telekom Malaysia Eastern Africa Submarine Cable System

14. Key Features of the System • The completion of an optic fibre ring around Africa in conjunction with other optic fibre submarine cable systems • The first optic fibre connectivity between Eastern Africa and the global optic fibre network • A superior optic fibre connectivity utilizing Synchronous Digital Hierarchy, direct Optical Amplification and Wavelength Division Multiplexing technology • High capacity • Superior quality • Cost-effective alternative transmission medium • Provides excellent diversity and restoration options for the users Eastern Africa Submarine Cable System

15. Djibouti Mogadishu (Somalia) Optional Branch and BU Mombasa (Kenya) Repeaterless Optional link Zanzibar (Tanzania) Repeaterless Optional link Mahajanga (Madagascar) Maputo (Mozambique) Mtunzini (South Africa) Configuration Dar Es Salaam (Tanzania)

16. Technical Description • System length 8 840 km • Dense Wavelength Division Multiplexing Technology (DWDM) • Direct Optical Amplification Technology • Additional feeder network through repeaterless festoon systems, if required • 2 fibre pair system configured as a collapsed ring • Proposed ultimate capacity per fiber pair • 16 or 32 wavelengths at 10 Gbit/s • Total capacity of 320 or 640 Gb/s • Initial equipage: 1 or 2 wavelengths per fiber • System design life of 25 years. Eastern Africa Submarine Cable System

17. Benefits to Africa • Improved high capacity optic fibre connectivity within Africa and the rest of the world. • Enables new services and products not possible before due to bandwidth restrictions • Contributes towards the socio-economic development of the region • Reduced unit costs (capital and operational) for global connectivity, leading to increased profits • Reduced out payments to foreign telecommunications (satellite) facility providers. • Direct routes through own infrastructure obviate the need for transits through Third Parties - reduced out payments. • Expansion in inter-Africa trade, facilitated by better communication in the region. Eastern Africa Submarine Cable System

18. Project Costs • Project cost for a system from SA to Djibouti estimated at US$200 Million • This includes US$170 million for the System Supply and US$30 million for project management • The above excludes the cable station building and ancillary services which is estimated at US$2Million each. • There are planned 8 cable stations at Mtunzini - South Africa, Mahajanga - Madagascar, Maputo-Mozambique, Dar es Salaam and Zanzibar –Tanzania, Mombasa – Kenya, Mogadishu – Somalia and Djibouti – Djibouti. Eastern Africa Submarine Cable System

19. Project Status • Initial feasibility study completed • MOU signed by eleven (11) parties. • Project Management Committee (PMC) and Working Groups formed. • PMC chairman and Working Group Team Leaders appointed. • Tasks in the next phase are as follows: • Carrying out detailed feasibility study • Developing the project financing model • Drafting of Construction & Maintenance Agreement • Invitation of tenders for supply of System Eastern Africa Submarine Cable System

20. Project Management Committee • PMC Chairman – Telkom Kenya • Project Secretariat - Telkom Kenya • Project Coordinator - Zanzibar Telecom • Commercial &Finance WG Leader - Uganda Telecom • Interim Procurement WG Leader – Telkom South Africa • Construction &Maintenance Agreement WG Leader – TDM Mozambique • Backhaul Coordination WG - NEPAD Eastern Africa Submarine Cable System

21. Planned Project Milestones • Sign MOU Q4 2003 • Agree on Configuration Q2 2004 • Issue Invitation to Tender Q3 2004 • Financial Closing Q4 2004 • Sign Supply Contract & C&MA Q2 2005 • Cable RFCS Q4 2006 Eastern Africa Submarine Cable System

22. Conclusion The successful implementation of the East African Submarine Cable System is expected to make significant contribution to the development and provision of ICT services and facilitate the intra-regional as well as international trade. Eastern Africa Submarine Cable System

23. The End Eastern Africa Submarine Cable System