the carrier of choice in wholesale market - telkom€¦ · the carrier of choice in wholesale...
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The carrier of choice in wholesale market
Wally BeeldersManaging Executive:ISMS
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A comprehensive wholesale product portfolio
Full portfolio of VOIP and broadband servicesWholesale network connects to over 87 countries and territoriesGlobal IP coverage via 15 POPsin 13 countriesInternational fibre connectivity via SAT3/SAFETerrestrial fibre
Distribution
Application hosting
Web hosting
Data centers
Packaged voice services
Switched voice minutes
Voice-over-IP
Gigabit Ethernet
SDH/Sonet
Dark fibre
Ducts
Dial-up Internet access
DSL
Local leased circuits
Broadband fixed wireless
Local fibre
Managed IP services
Long-distance leased circuits
Frame relay/ATM
IP transit
SDH/Sonet
Wavelengths
Dark fibre
Ducts
E-service
Voice
MANs
Access
Managed dataservices
Transport
Infrastructure
Source: Ovum
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Combating increasing competition in international
Expected market share losses for international voice
SNO to be operational in 2004
Revenue pressure from lower settlement rates
Continued bypass of Telkom network
IP convergence
Exchange rate impact on revenues
Trends Opportunities
Internationalcarriers
Switched hubbing
Global IP connectivity
International call centres
New services to African operators
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Global IP connectivity expansion
Telkom’s investment to increase its global reachEnsure high redundancy in networkNegotiating peering agreements with Europe and US operatorsSLAs on IPNet
111 8th AveNY,USATelkom
IP Transit
TelecityLDN, UKTelkom
IP Transit
Amsterdam
IP Transit
SAT-3 (R)
Connection via SAFE, Asia to the West Coast of USA –Sprint (Flag FEA(-), FNAL(P) and FP-1(P))
Tycom (P)
TeliaTAT-14 (P)
RSA
Global CrossingAC-1 (P)
Global Crossing (P)
GlobalCrossing
USA
USA
EUROPE(Existing)
EUROPE
ASIA
TBD
SMW3 (restorationpath)
Sesimbra
Penang
RSALIR
WCTB
RSALIR
RJRB
WashingtonAshburn
Note 1 IP Transit
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International call centres expanding
Government is promoting south africa as an international call centre and business process outsourcing (BPO) hubInternational BPO target segments – sectors with large number of transactions
Banking and insurance Telecom – retail IT– technical support Retail TravelHealthcare
Currently 15 contracted call centre customers
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Servicing African operators
Value add platforms – TDM (Telkom)
Voice traffic hubbing
IPNetservices(Telkom)
Network management systems (Telkom)
Network management services
(Telkom - NNOC)
SAIX(Telkom)
Fixed/Mobile operator serviceDDP accessSwitched hubbingBroadband wholesale
Professional servicesConsultancyTrainingProgramme management
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Mobile interconnect
Growing international mobile minutesSlowing growth in revenue from leased facilities from Telkomfor base station links Expect negative growth in fixed-to-mobile to continueRisk of losing mobile business to SNO
Old interconnect regimeTelkom peak retention fixed at 21c/min irrespective of retail rateTelkom paid mobile operators 21c/min for international callsTelkom gave mobile operators various discounts
New interconnect regimeTelkom peak retention 33c/min and increase annually by the greater of CPI or 2c/minTelkom can increase termination annually by the greater of CPI or 2c/minPay mobile operators same for national and internationalDiscontinued various discounts
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Competitive wholesale focus for the future
Partnership agreementsTerm and volume agreementsIP interconnect – indirect minutes
Interconnection with SNOBroadband facility leasing agreementMinimise arbitrage opportunitiesLeverage quality and value proposition
Network outsourcing/switched hubbingIP clearinghouse for AfricaNetwork managementInterconnect hubbing
Analogue to digital migrationService level agreementsCoverage solutions
ISPS/VANs
Interconnection
International voice/capacity
Broadcasting