New route - «Baltic Highway»


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Baltic Highway is a superior fiber-optic infrastructure that will allow the transmission of data from Russia and Asia via the Baltic States, Poland, and Germany at n*10 Gbps data rates. In order to ensure high-quality data transmission at high data rates, the most up-to-date and widely applied technology DWDM is used.

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New route - «Baltic Highway»

  1. 1. «Baltic Highway» Opening Event, Riga September 26, 2012«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
  2. 2. New route - «Baltic Highway»«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Juris GULBIS
  3. 3. Benefits of the Project for Latvia and Baltics «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Juris GULBIS
  4. 4. «Baltic Highway» benefits for Latvia• Increased access speed to Broadband International web-based Internet speed content.• Infrastructure to develop Internet based e-services in East and Source: Akamai,1Q,2012 West directions. Broadband Internet market Source: Lattelecom Residential Business Latvia Latvia 64% 85% Lattelecom Lattelecom share share 44% 63% «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Juris GULBIS
  5. 5. «Baltic Highway» benefits for Baltics• To facilitate more than half of Lattelecom International Internet traffic (GBps) Source: Lattelecom growing Lattelecom Internet 129 96 traffic 46 26 5 12• Enables to participate in Internet 2007 2008 2009 2010 2011 2012 transit service connecting Russia, Asia, and Europe Lattelecom International Internet traffic by routes (forecast) Source: Lattelecom Traffic via other routes 36% Traffic via Traffic via MegaFon 28% Deutsche Telekom 36% «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Juris GULBIS
  6. 6. Role and Benefits of the Project for Western Europe and USA «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Holger MAGNUSSEN
  7. 7. Deutsche Telekom – profile.«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Holger MAGNUSSEN
  8. 8. Products & services. Partner services & Consumers Business customers platforms Modern mobile &  Information &  Partner for infrastructure broadband experience communications technology access and network services Television solutions (ICT)  Platforms & co-operation Online services  Outsourcing & cloud services projects  Intelligent networks for for innovative services Cloud solutions Health, Automotive and Energy «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Holger MAGNUSSEN
  9. 9. Trends & technologies.«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Holger MAGNUSSEN
  10. 10. Deutsche Telekom – transformation. Transformation From a state-owned telecommunications company to a service provider: My First Choice for Connected Life and Work for customers«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Holger MAGNUSSEN
  11. 11. Deutsche TelekomInternational Carrier Sales & Solutions (ICSS). «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Holger MAGNUSSEN
  12. 12. Bridge for Western Europe to Baltic states, Russia and Asia.• Baltic Highway provides a robust, high-capacity and low Capacity Europe-Asia 25,000 latency bridge to Baltic 20,000 states, Russia and Asia Gbps supported by reliable partners. 15,000 10,000• These factors are critical for 5,000 financial institutions, wholesale 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 carriers or large corporate customers from WE and US for Total Used Capacity their transactional environments …for Internet …for switched voice and disaster recovery solutions. …for private networks Source: TeleGeography «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Holger MAGNUSSEN
  13. 13. Extended Access to Baltic & Russian markets.• Deutsche Telekom ICSS offers Deutsche Telekom & Affiliates services to the carrier and corporate segments in Baltic countries and Russia.• New DWDM infrastructure and established partnerships will enable Deutsche Telekom ICSS to offer additional flexibility and new services in the markets covered by Baltic Highway. «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Holger MAGNUSSEN
  14. 14. Baltic Highway - New opportunities for Russian and Asian markets«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Svetlana SMIRNOVA
  15. 15. About MegaFon in briefRevenue, $ bln 13% Revenue growth in 2011 + 11% 83 Full coverage of All Russian regions 5,85 6,06 7,18 8,09 63,99 Million subscribers of Russian population live 75% on the territory, covered by 5,85 6,06 7,18 8,09 Megafon’s 3G network 2008 2009 2010 2011  The highest net income among Russian mobile Big-3  The highest revenue from mobile data transmission in Russia  The highest investing rating in Russian Telco market (Baa3, Moody`s) «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Svetlana SMIRNOVA
  16. 16. MegaFon`s business markets in Russia Enterprise business Wholesale business • #3 in mobile • #3 in IP connectivity • 9% overall revenue market share • #3 in Data transmission services • 17% overall revenue market share Residential clients Governmental agencies • #2 in mobile overall • #2 operator overall • #1 in mobile data • 8% overall revenue market share • 28% total mobile revenue market share «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Svetlana SMIRNOVA
  17. 17. MegaFon in Baltic Highway ProjectPossibility to connect telco services inRussia and CIS based on MegaFon`sand it`s partners` networksDirect routes to Moscow and St.Petersburg with minimum latency Saint Petersburg“Ring” back up for each route Pskov Riga Smolensk Moscow «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Svetlana SMIRNOVA
  18. 18. «Baltic Highway». Benefits for Russia Multinational companies market IP traffic growth rate in Russia growth rate in Russia + 40% + 5% 2011 2012 2013 2014 2011 2012 2013 2014 New level of internet More possibilities for latency access quality (less signal critical corporate services for response time) based on international companies with the shortest route offices in Russia and Europe «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Svetlana SMIRNOVA
  19. 19. «Baltic Highway» responds to Europe – Asian Market demandEurope – Asia traffic volume growth rate 2011 Europe – Asia Traffic traffic distribution + 25% 2016 2012 2013 2014 2015 The terrestrial route through Russia Europe-Asia leased bandwidth are getting more demanded. By will triple by the end of 2016 up 2016 its share in Euro-Asian traffic to 1,5 Tbps will double «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Svetlana SMIRNOVA
  20. 20. «Baltic Highway» in DREAM project ”Baltic Highway” – potential additional route to Frankfurt in DREAM” Moscow Riga FrankfurtCompleted Nx10G High quality alternative Significant decrease ofcapacity for fast growing to existing terrestrial latency in the Europeantraffic volume between routes part of Eurasian transitEurope and Asia «Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia) Svetlana SMIRNOVA
  21. 21. Thank You!«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)