COMMERCIAL–IN-CONFIDENCECOMMERCIAL–IN-CONFIDENCE

Building Integrated ICT InfrastructureByron ClatterbuckChief Commercial OfficerSEACOMApril 16, 2014

COMMERCIAL–IN-CONFIDENCE

The African Telecoms / Bandwidth Landscape Has Been Transformed Over The Past 5 Years…

2

The Arrival Of Submarine Systems And Rapid Terrestrial Fibre Development Has Launched An African Data Revolution

Pilot Schemes And Full Scale VAS Propositions Are Being Launched Across

The RegionInternet Usage Is Increasing Rapidly

363

160 184

85

233

80

448521

251207

492

380

Ghana Kenya Mozambique Nigeria South Africa Tanzania

Throughput (kbps)2011

2008

38

650

2008 2013

Sub-Saharan Africa Internet Bandwidth (Gbps)

Source: ITU

Source: Global Internet Geography, 2013 Source: PingER, March 2012

Note: Illustrative examples

Kenya Tanzania Uganda0%5%

10%15%20%25%30%35%

Percentage of Individuals using the Internet

2009 2012

COMMERCIAL–IN-CONFIDENCE

…But Various Bottlenecks Continue To Negatively Impact Latency And Service Quality

3

Access Speeds Lag BRIC Nations… …Whilst Quality Still Has Room For Improvement

448 521

251 207

492380

1,278

865 921

521

Note: MOS provides a numerical indication of the perceived quality from the users' perspective of received media after compression and/or transmission. The MOS is expressed as a single number in the range 1 to 5, where 1 is lowest perceived audio quality, and 5 is the highest perceived audio quality measurementSource: PingER, March 2012

1.4

3.2

1.5

7.2

1.80.8

0.3 0.3 0.41.2 0.8

1.4 1.3

Overall User Experience Levels Remain Lower Than The Rest Of The World Despite Recent Improvements

2011 Throughput (kbps) 2011 Inter Packet Delay Variation (ms)

2.8

1.7

1.0

2.6

1.7

3.74.0 4.0

3.63.9

4.4 4.3 4.3

3.13.6 3.4 3.2 3.2

3.9 4.0 4.13.8 4.0

4.4 4.3 4.2

South Africa Kenya Tanzania Mozambique Nigeria Ghana Brazil Russia India China US Japan UK

A Mean Opinion Score (MOS) of greater than 3.5 can generally support VoIP services such as Skype

2011

2008

Source: PingER, March 2012Source: PingER, March 2012

COMMERCIAL–IN-CONFIDENCE

Given These Latency Issues, International Bandwidth Alone Is Yet To Fully Unlock Demand For Internet Based Services

4

Major Internet Applications Are Still Largely Unavailable In Africa Given The Limited Content Hosted Locally Within The Region

AfricaKenya South Africa BRICsBrazil Russia China India Selected Developed MarketsJapan France Germany United Kingdom Canada Japan United States

P Peering locations in mid-2013 P New peering locations added since mid-2009

Source: Telegeography, 2013

Until content in all its forms is brought to Africa, and the tools to create local content are made available, Africa will continue to lag in creativity, efficiency and revenue generating potential from the Internet

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Bringing Rich Content And Services To Africa Will Drive New Demand And Usage To Levels In Line With Other Regions

5

18%10% 14%

8% 9%

8%9% 5%

9%

7%

9%6%

6%

24%

19%

39%

16% 25%

15% 23%

5%

26%32%

38%47%

5%

23%14%

22%11%

0%

20%

40%

60%

80%

100%

Africa Latin America Europe North America APAC

Outside Top 5 Tunneling Marketplaces Filesharing Communications

Gaming Web Browsing Real-Time Entertainment Social Networking

Source: Sandvine, 2H 2013, Aggregate of upstream and downstream traffic

Peak Period Mobile Internet Traffic Composition

21 348 358 1,100

Monthly Consumer Consumption

(Mb):444

Delivering this internet experience to African enterprises and consumers requires multiples of the current levels of bandwidth in the region

COMMERCIAL–IN-CONFIDENCE

…Thereby Unlocking Africa’s Internet Potential

6

Africa today Africa in 2025

16% Internet penetration

67m smartphones

52m Facebook users

167m Internet users

>50% urban residents online

$18bn Internet GDP contribution

~50% Internet

penetration

360m smartphone

s

600m Internet

users

$300bn Internet

GDP contributio

n

$75bn in e-commerce

sales

Source: McKinsey

COMMERCIAL–IN-CONFIDENCE

Multiple Tier-1 Upstream Providers & EU IX Peers

Cape Town

Nairobi

Dar Es Salaam

Kampala

SEACOMWACS

ASIA/EU Tier-1

Upstream via Mumbai

Multiple Tier-1 Upstream Providers & EU IX Peers

SEACOM’s IP Network – Focused on quality!

Mombasa

Maputo

Mtunzini

Johannesburg

Mumbai

MarseilleLondon

SEACOM Router

Global Internet routes through interconnection with multiple Tier-1 networks

Built in resiliency through diverse West & East Cable Systems (including own terrestrial fibre networks in South Africa between WACS CLS, CT, JHB & SEACOM CLS)

4

1

Low latency content from leading CDN nodes deployed on SEACOM MPLS Network on African continent.

3 African networks & content

Djibouti

Amsterdam

5

2

SEACOM IP Transit networkPeers at multiple IX’s:- LINX- AMS-IX- France-IX

COMMERCIAL–IN-CONFIDENCE

COMMERCIAL–IN-CONFIDENCE

Building Integrated ICT Infrastructure

Thank you