Facilitating the Understanding of

SecurityFirst2007

July 3, 2007

Marriott Hotel, Islamabad

Thomas W. Wilson

CEO & Managing Executive Director, Board Member

Network Security Issues in South Asia, the Middle East, and North Africa

Introductory Remarks: SAMENA

INTERNALVery quickly expanding diversified membership portfolio

Organization of high-profile industry events

Enhancement of regulatory advocacy capabilities

Technology/regulatory support committee setups

Growing market update and research support

INTRA-REGIONALActive participation in top-level regional conferences and industry gatherings

Regional partnerships with leading business intelligence firms (Arab Advisors Group, Frost & Sullivan)

INTER-REGIONALInvolvement with international telecoms organizations and fora (ITU, GVF, PTC, etc) to facilitate proactive understanding of current and emerging telecoms regulatory issues

MiddleMiddleEastEast South

Asia

NorthAfrica

Introductory Remarks: Regional Markets

During 2001-2006,Internet usage has witnessed

growth of 1200%, indicating risein fixed-line teledensity

Mobile phone telephonyhas been the winner. Itexperienced a growthrate of 105% during

2003-2006

22% of the total populationin South Asia uses cell phones,

hence a large potential forfurther investment exists

South Asia (excluding India)has a total population of 372 million

…and growing

SouthSouthAsiaAsia

Introductory Remarks: Regional Markets

3G networks exist (e.g., Sri Lanka)and planned (e.g., Pakistan).

Quick WiMAX take-ups.

By 2011, expected mobile subscriber base will be 150 million

Strong growth potential,still low connectivity

Subscriber growth nearing 90 million

MiddleMiddleEastEast

Internet usage grew to over 800% during 2001-2006

Telecom democratization since 1998

Arid terrains and othergeographical variables cause

populations to besporadically distributed

Nearly US$15 billion have already been raised this year to support expansion and M&A;Telecom financing could exceed US$30 billion

Introductory Remarks: Regional Markets

Issuance of 3G telecom licensesalready in place (Egypt) and

expected (Morocco)

Average growth rateOf 23% to persist until 2011

Mobile penetration tosurpass 45% by 2011

Mobile subscriber base doubledfrom 7.6 million to over 14 million

between 2004 and 2005

North African telecom market is to growto US$10 Billion by 2008

NorthNorthAfricaAfrica

Introductory Remarks: Regional Markets

Acquisition opportunity inAlgeria exists for large

telecom operators

Large populations. Growing teledensity. Regulatory challenges. Institutional improvements being slowly introduced Scarce telecom infrastructure, prompting a need for large investments

for increasing connectivity Market liberalization and the need for enabling policies Emergence of new technologies — need for educated decision-making

3G rollouts — risks and investments WiMAX consideration — confusion, benefits, costs VoIP — unwillingness to adopt, threats

ARPU falling—alternatives must be sought Industry consolidation issues Content and customer management issues Revenue assurance issues (e.g., network security, telecom fraud) Complexity of regulatory matters Rising need to secure telecoms networks

Introductory Remarks: Regional Concerns

Traditionally set up to support end-to-end transfer of analog and of digital information, modern networks are divided into layers in order to achieve service integration.

Different layers exist to support and distinguish between voice, data, multimedia (connectivity layer), and signalling (control layer).

Core networks now also support service layers to provide some in-built security features.

The industry is increasingly being driven by IP, giving rise to security vulnerabilities.

Telecoms Advancements: General Notes

The concept of network security needs understanding

Advanced technologies are giving to rise to advanced security threats

IT-network security related issues are comparatively more well-defined than Telecom-network security issues

Active revenue losses and potential for future revenue loss are drastically multiplying

Regional Issues: Network Security

Regulatory bodies require assistance in developing security mandates

Security frameworks and operator compliance to defined regulatory mandates needs to happen

Companies require understanding as to what constitutes secure networks, and help in developing security mechanisms

There seems to be little or no focus on both external and internal threats to networks

Business and technology requirements are evolving too fast

Regional Issues: Network Security (contd.)

Traditional network architecture cannot support protection against imminent destructive assaults due to low in-built dynamism and capabilities required to handle security threats

How to create a comprehensive system of network security by combining offense and defense tactics

How to deliver more security with manageable complexity, and create automated security practices

How can trustworthy network infrastructure be created

Regional Issues: Network Security (contd.)

SAMENA is keen to work with regulators and other telecom organizations to project network security issues throughout the region, and to work with regulators and operators through its multi-faceted platform.

We are heavily driven by the motivation to aid balanced resolutions to telecoms matters, some of which are of serious nature, such as network security..

Collaboration between decision makers has been proven to yield from efficient and robust results than could be achieved through individual efforts. Thus, it is SAMENA’s objective to provide its support in every way possible.

SAMENA’s consultative network, comprising telecoms and regulatory experts, vendor partnerships, and regulatory advisors are there to guide the Council’s agenda, designed in the best interest of all concerns telecommunications organizations.

SAMENA: Support Mechanism

Regional dynamics require raising ICT competencies and furthering telecom expansion for propelling economic activity

Experiences and issues from one region can best be communicated through a common, mutual platform

A need for an unbiased and collective representation of telecoms issues of service providers and telecom entities

A dire need for a channel that would facilitate easy approachability to key regional and global decision makers (such as the ITU)

Collaboration and engagement are required in this era of fast change

SAMENA: A Regional Need

To provide a non-biased working environment to leading telecom operators (e.g., PTCL, STC) and regulators (e.g., PTA, CITC), and other concerned government and non-government bodies, technology suppliers, private industry entrepreneurs, and academia

To help accelerate the establishment of fair regulatory policies, keeping specific regional requirements and the operator’s business concerns in focus

To create an unprecedented collaborative and incubative front to unite the three regions (collectively SAMENA), and to help in everyway in the operator’s expansion efforts

To be the ultimate, tri-regional telecoms industry promoter

SAMENA’ Role: Mission & Goals

To communicate recommendations of the Council to the established national, regional, and international organization and institutions

To create means for diverse, telecom-related entities to work together with regard to telecommunications policies

To bring on board a diversified group of telecom-related entities to bring representation to SAMENA’s established committees, concerning different facets of the telecom industry

To promote ICT to enhance communications and economic betterment in the SAMENA region

To assist new market entrants

To continually educate, provide advocacy support, and assist in educated decision-making by organizing industry seminars and events

SAMENA’s Role: Mission & Goals (contd.)

Gather business intelligence Regulators are involved with issues on devising security policies for telecom networks, as well

as policies relating to improving QoS and other immediate business and consumer needs.

Decision-makers, generally speaking, are ready to deploy IP telephony solutions. About seven out of ten unanimously agree on implementing IP telephony; forty-percent of those want to do it by the end of 2006.

Convergence of different industries, including the Internet, TV, and computing, and traditional regulatory models do not apply.

Network security awareness throughout the region is low, and thus SAMENA’s initiatives are put to use to educate.

SAMENA: Approach & Capability

Gather business intelligence (contd.) The ITU is actively working to help service providers bridge gap

between “last-gen” networks with “next-gen” networks.

Stake holders need to be educated about NGN services. Regulators throughout the world are discussing the need and the timing for NGN regulations.

Need regulatory initiatives to encourage capital investment for the use of new technologies.

The SAMENA region may have only 5/6 major telecom players within the next 7 to 8 years.

Interact and participate Expanding Membership: brining top regional resources on board SAMENA at regional high-profile conferences and gatherings

SAMENA: Approach & Capability

Operators’ other concern areas:

Core and emerging issues, including network security Technology neutrality Interconnection fee structure definitions IP telephony and issues with regard to QoS assurance and fraud Number portability and its true value, as well as its management between IP phone and fixed

phone connections Efficient QoS measurement processes

SAMENA: Awareness of Operators’ Issues

SAMENA: Current Members

…and more

Security First 2007, Islamabad, July, 2007

Convergence to Casablanca, Morocco, October, 2007

Telecom & Regulatory survey of operator and regulatory issues throughout the region

Daily and regularized telecom information updates, and construction of telecoms data for SAMENA Members

Regulatory advocacy efforts in Pakistan, Oman, UAE, Saudi Arabia, and others, regarding Telecom Network Security, International Roaming Rates, IP Telephony, Interconnect, Revenue Assurance

SAMENA: Current Involvement

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SAMENASAMENA brings exceptional value to all operators and telecommunications organizations in regions that are currently not represented through a unified platform.

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SAMENASAMENA raises awareness amongst its Members in the region, giving its member organizations a higher platform of visibility and connectivity with others, globally, and on a continual basis.

iiiiii

SAMENASAMENA will elevate revenues and profits, and will provide its advocacy capabilities in all manners possible and needed, including its close interaction with the ITU.

SAMENA: Concluding Remarks

Thank you