eng. salem mtheib al ozainah chairman & chief executive ... · • global internet traffic in...

Session 4: Potential & Lucrative Investment Opportunities فرص متاحة وواعدة: اإلستثمار: الجلسة الرابعة

Eng. Salem Mtheib Al Ozainah Chairman & Chief Executive Officer, Public Authority for Communications and Information Technology

• IP traffic to reach zettabyte (1021 bytes) 2016 and 2 zettabytes by 2019 .

• Content Delivery Networks (CDNs) carry 70% of Internet traffic by 2019

• 2/3 of all IP traffic will originate from non-PC devices by 2019

• Global Internet traffic in 2019 will be equivalent to 66 times the volume of Y2005.

• # of devices connected to IP networks will be more than 3 times the global population

by 2019.

• Broadband speeds will more than double by 2019…will reach 42.5 Mbps/user

• IP video traffic will be 80 % of all IP traffic by 2019

• Mobile data traffic will increase 10-fold between 2014 and 2019

Source: CISCO Visual Networking Index

TIPS GLOBAL INTERNET TRAFFIC GROWTH

Regional Cable System & IX - KDIPA Mar 9 3

Source: www.Telegeography.com

Compound Annual Traffic Growth (2011-2015)

Regional Cable System & IX - KDIPA Mar 9

Annual Traffic Growth Forecast (2016-2022)

Source: www.Telegeography.com

• Compound Ave Growth Rate (CAGR) is 40%

• Middle East growth is above average

• CAGR 37% in the next 6 yrs

• Middle East annual growth is expected to

reach 35%

• Demand for high speed connection will

remain high

4

http://www.telegeography.com/

http://www.telegeography.com/


ME is 3% of total Global Traffic

5

Global Submarine Cable Systems


(880,000 Km of Sub-Sea cables)

6

Middle East Cable Systems


GCC Cable Systems


11 Cable Sys

Oman 9

UAE 13

Qtr 5

Bah 4

Kwt 4

# of Cable Landings at each GCC Country


Iraq 2

9

Egypt & Yemen are bottlenecks

Fujaira

Jedda

Egypt


Bab Almandab

10

Aleskandria Bottleneck


Alternative(s) ??

Fujaira

Jedda

Egypt


Bab Almandab

12

Egypt

20%

Go Terrestrial

Syria/Iraq to Turkey then to Europe


Terrestrial Cable Projects RCN, JADI & EPEG

X

RCN

JADI

EPEG


EPEG is a consortium driven by Omantel From Oman to Frankfurt through Iran, Azerbijan, Russia, East Europe Idea started in June 2011…went live in Dec 2012

RCN is a consortium driven by Etisalat From Fuj UAE to Istanbul…idea started in 2010

JADI is a consortium driven by STC From Jeddah to Istanbul…idea started in 2010

14

Because of Syria Situation, RCN & JADI Attempt to go around Syria (via Iraq)…Attempts Failed

X


RCN

JADI

EPEG

Due to situation in Syria, RCN & JADI projects put on hold

Attempts to re-route via Iraq failed

15

Terrestrial Cable Projects New Initiatives

X


MEETS Zajil, ZAIN Saudi, Vodafone Qtr & DU UAE idea stared in Mar 2011, went live Jan 2016

GIT Qualitynet, Mobily, Etisalat, Batelco, ooredoo Qtr, Superonline, IQ Idea started in Feb 2011…still at MOU stage

Khaleej Cable System was driven by Google…idea started in 2009 but died in 2011

16

النويصيب

المملكة العربية السعودية

Mobily

المدينة

Cable Systems in Kuwait

FALCON

GBI

FOG

العبدلي

17

السالمي

راس السالمية

STC

Kwt-Iran

Capacity Growth in Kuwait (as of Jan 2016)

(200G)

CITRA Initiative is to connect GCC to Iraq & Turkey


GCC Traffic

SEAsia Traffic

19

GCCIA Electrical Grid


Peering • Private/Local Peering: (ISPs within a country)

• Two ISPs agree to provide access to each others’ customers

• commonly no money exchanges…“settlement free”

• simple commercial agreements

• Public Peering:

• Internet Peering Point (“IX” or “IXP”) • multiple parties connect to shared switched fabric

• commonly Ethernet /Gig based

• open, many-to-many connectivity


Local Internet Exchanges

Global

Internet

Downstream Customers

ISP- A ISP-B

IPX


IXP Approach

• Single large pipe to the IXP more efficient than many smaller pipes to many ISPs

ISP

ISP

ISP

ISP ISP

ISP

ISP

ISP

ISP ISP

IXP

IXP = Internet eXchange Point ISP = Internet Service Provider

Old Peering Model New Peering Model

• Keeps domestic traffic within a country/region without having to take indirect international route

• Typically 20-35% of traffic can be domestic

• Reduced bandwidth costs

• Improved throughput and latency performance

• Commercial basis of traffic exchange between ISPs across IXP usually via cost-saving peering, or usage based.

• Critical mass of ISPs in a single location creates competitive market in provision of capacity, transit and services

• ..\..\Videos\internet_happens_arabic.mp4

Why Do We Need an Internet Exchange?


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Internet Exchange Map (300 active exchanges with multiple sizes)

Source: www.internetexchangemap.com 26

• In US: New York

• In Europe: Frankfort, Amsterdam & London

• In Middle East: Egypt

• In GCC: UAE (UAE-IX in Datamena & Smart Hub)

Popular IXs


Internet Exchange Ingredients

1) Tier 4 Data Center

Google

Akamai

Whatsup

Netflex

AT&T

L3

Zain

VF

I S P

MBC

2) Diverse Backhauls

3) Cheap Co-location & Interconnection pricing

4) High Traffic Demand C

on

ten

t M

ed

ia

Car

rie

rs

Telc

o


THE OPPORTUNITY GCC & SEA traffic by 2016 reaching 45 Terra (45,000 Gig)…around 90% is

passing through Egypt Iran is not an option Off-load Sub-marine capacity during outages Terrestrial cable ring is preferred by global carriers & Telcos Reduce network latency: 10K Km vs 5K Km (from 120ms to 80ms) Rather than passing through Egypt, go through Kuwait/Iraq Provide more domestic capacity:

To accommodate future growth on demand Complement fiber roll out throughout Kuwait Reduce cost on ISPs & end users Enhance customer experience

Create Kuwait as transit hub in the region New revenue stream to GDP

Kuwait AS A TRANSIT & IX HUB


Thank You


eng. salem mtheib al ozainah chairman & chief executive ... · • global internet traffic in...

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