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Jean-Louis Parmentier Chief Operating Officer, SEACOM Ltd Parmentier@seacom.mu

Jean-Louis Parmentier Chief Operating Officer, SEACOM Ltd Parmentier@seacom.mu. SEACOM Story Update FEAST Workshop Bruxelles, February 25th, 2010. SEACOM snapshot.

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Jean-Louis Parmentier Chief Operating Officer, SEACOM Ltd Parmentier@seacom.mu

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  1. Jean-Louis Parmentier Chief Operating Officer, SEACOM Ltd Parmentier@seacom.mu SEACOM Story Update FEAST Workshop Bruxelles, February 25th, 2010

  2. SEACOM snapshot SEACOM is a privately funded African company, offering a 1.28Tb/s submarine fiber optic cable system linking Africa to Europe and Asia via the Middle East “SEACOM is open for business and ready to supply complete solutions for Africa’s Broadband on Demand needs” SEACOM’s drivers Fibre topography • Wholesale provider of bandwidth • Deliver infrastructure support for the growth of the ICT sector, e.g. BPO, call centers, education • Be committed to the principles of open and equitable access to broadband • Facilitate the development of high volume, low cost market encouraging new industries to emerge, stimulating further demand • Compliment GSM and fixed line national carriers by providing low cost high capacity bandwidth and additional redundancy • Be fully funded & majority African owned (76.25%)

  3. 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 • The “Death of distance” through a single price • Providing services to medical & educational institutions, partnering with Ubuntunet & TENET • True end-to-end solution from London to Johannesburg, from Mumbai to Nairobi… • Focus in getting backhaul to landlocked countries in need • Working in harmony with existing channels and building redundancy • Applying best practice risk management & disaster recovery across the full value chain & 24 hour global support Without true open access, Africa will limit the potential of tomorrow’s unkown innovators

  4. Activation progress Progress Dec 2009 • Deployment Information • Network Schematic • RFCS 23rd July 2009 • are the active parts of the network in South east Africa : • Currently over direct Mumbai-Marseilles SMW4 capacity • Completion Med & Red Sea Q2 2010

  5. Activity figures Achievements & challenges Jan 2010 Traffic breakdown Capacity Availability • Activated Capacity between Africa to : • Europe 91% • India 6% • Africa 2% • South East Regional 1% • Wet cable : 100% ✔ • Terrestrial backhaul : • Fiber over power lines : > 99,9% ✔ • Underground fiber with route protection : > 99,9% ✔ • Underground fibers non redundant ☹ • Worst 3 months >97,8% • Other > 99%

  6. Abundant Bandwidth Will Bring Near-term Change to Africa Educational program Provision • 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 • for non commercial and Acceptable Usage purposes • SEACOM has extended the below cost bandwidth offer to the NREN of Southern and Eastern African Universities as well as to uBhuntuNet • Tenet • Kenet • University Dar Es Salaam

  7. Immediate impacts of SEACOM: Kenya in focus Went operational on 23 July 2009 Impacts on Kenya include: Within 3 days Kenya reports 3-5 times increase in internet speeds Within 14 days of launch Safaricom CEO reported 200% increase in data traffic International bandwidth supply increase of 700%

  8. Immediate impacts of SEACOM on Mozambique Went operational on 23 July 2009 Impacts on Mozambique include: International bandwidth supply increase of 850% One ISP customer doubled bandwidth from September 2009 for same price, while others now offer end user choice (double bandwidth for same price OR same bandwidth for half the price) After connection to SEACOM, ISP verified a rapid increase in bandwidth usage, and is now connecting their aditionnal STM-1 circuit in order to respond to their customers’ needs

  9. Immediate impacts of SEACOM: Uganda in focus Went operational on Spetember 2009 Impacts on Uganda include: Favorable comments from Uganda Telecom on speed of the network and the IP Transit service

  10. SEACOM’s coverage and impact on Tanzania Went operational on 23 July 2009 Impacts on Tanzania include: Pre-SEACOM international bandwidth supply= 300Mb/s. Post-SEACOM international bandwidth supply= 3000Mb/s, 1000% increase Vodacom MD stated that margins increased 30% the day they switched from satellite to SEACOM University of Dar Es Salaam increased capacity 1000%+ through SEACOM relationship, 1st truly “wired” university in East Africa

  11. Immediate impacts of SEACOM: Rwanda in focus Went operational on Sept 2009 Impacts on Rwanda include: “After a full connection to the under sea cable [i.e. SEACOM], Rwandatel’s internet subscriber base is projected to increase by 10% in the first 12 months” (AllAfrica.com news, Jan 14, 2010) “After signing a contract with SEACOM connectivity last year, Rwandatel acquired 155 Mbps of capacity….The deal is expected to help Rwandatel consolidate its position as Rwanda’s leading Internet Service Provider” (AllAfrica.com news, Jan 14, 2010)

  12. Immediate impacts of SEACOM: South Africa Went operational on 23 July 2009 Impacts on South Africa include: Monthly lease cost for a STM-1 circuit declined by over 50%, from 2.1M ZAR (USD 283,090) per month in 2006 to 0.8M ZAR (USD107,844) per month currently. MTN announced a 50% increase in capacity for certain corporate clients in South Africa while Telkom and Mweb also announced similar increases International bandwidth supply increase of 700%

  13. SEACOM way forward SEACOM’s strategy going forward will be to continue to pursue various business areas in order to fulfill Africa’s unmet broadband needs Addressing the needs of bandwidth hungry African economies Removing national and international infrastructure bottlenecks Facilitating research & education through discounted bandwidth Supporting the east and southern African economic growth by significantly lowering communications costs • A commercial dynamic is engaged • Broadband demand is not going to taper out….it is going to continue on this curve • The full value chain will be opened up allowing for low cost access right from the international long haul to the last mile to all Internet Service Providers • There will be significant M&A activity as more services get bundled in the quest to customize solutions and minimize churn • SEACOM is committed to share this journey…

  14. Thank You

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