The document discusses the socio-economic impacts of ultra high speed broadband access through fiber-to-the-home (FTTH) networks. It notes that FTTH connectivity is growing globally and transforming society by enabling connected experiences. FTTH improves quality of life by allowing high-speed access to enhanced online content and services. Deploying FTTH also creates jobs and economic growth opportunities for businesses, while attracting more investment to regions. The Middle East has seen some FTTH network deployments focused on new housing projects in countries like the UAE and Saudi Arabia.

1. Ultra high speed Broadband Access and the Socio-economic impact Gamal Hegazi, Board member FTTH council MENA May, 2011

2. FTTH Global panorama end-2010 – Total subscribers 3.9 M 45 M 8.8 M … and FTTH continues to grow 4.2 M 0.3 M

3. FTTH Global Ranking – end 2010

4. Connected Experience… Connected Life… Connected Home… Transformation of society is happening Residential Customers SME Customers Fiber-To-The-Office SME’s rethink “converged” Fiber-To-The-Home Quality of Experience matters

5. Understand your end-customer demand Connected Experience… Connected Life… Connected Home… Transformation of society is happening Residential Customers SME Customers Fiber-To-The-Office SME’s rethink “converged” Fiber-To-The-Home Quality of Experience matters

6. HSI VoIP OTT SD SD VoD HD HD VoD 3DTV Femto 20 Mb/s 50 Mb/s / sub ( 100 Mb/s peak) 20% CAGR expected bandwidth growth Sources: FTTH Council; Operators; Alcatel-Lucent Global peak and average bandwidth have demonstrated their ability to grow consistently. 100Mbps will eventually become commonplace. Connected Experience : we have to expect continuous bandwidth growth

7. Connected Experience : what about interactivity? upstream bandwidth? More Interactivity Online gamers need speed & static IP (server) Speed - Download allowance - Low latency - No throttle Static IP - Low contention ratio More Symmetry Online storage space Online backup and share TV-centric video communication Two way HD stream (15 Mbps)  FTTH/B STB needs real time video encoding Create minimal barriers for adoption Pay-as-you-go models for support Third parties create wholesale revenue

8. FTTH is a service enabler FTTH improves the way people live and work FTTH allows access to enhanced content & services: Real speed Download of 6.5 Gbyte DVD-film: 10 Mbit/s DSL : 1.44 hours 100 Mbit/s FTTH : 8.6 min = INTERACTIVITY Symmetry Upload of 300 holiday-photos (700 Mbyte): 1 Mbit/s Upstream: 92 minutes 10 Mbit/s Upstream: 9 minutes 100 Mbit/s Upstream: 56 seconds +

9. FTTH is a key economic driver FTTH is a critical driver for the knowledge economy Deployment of FTTH creates jobs New services create GDP growth, not only from ICT industry (entertainment industry etc.) FTTH creates business opportunities & competitiveness Operators : increased ARPU (30%!), lower churn-rate, OPEX savings Businesses : new ways of working, reduced travel & office rental costs, better time management, more innovation, better competitiveness Regions/Municipalities : retain and attract more businesses & investment, offer cost-efficient services to the community, increase local competitiveness

10. FTTH in Middle East Some Global Figures for the Middle East region Market share per category of player in terms of FTTH/B homes passed (Middle East December 2009) Source: IDATE for FTTH Council Europe

11. FTTH in Middle East - Overview Some Key projects in the region with impact on FTTH/B penetrations More than 30 FTTx projects in Middle East identified with 10 of which count for 2,500 Home passed By september 2010 Source: IDATE for FTTH Council Europe Key driver for FTTH/B deployments in the region is massive new housing programmes Abu Dhabi, Dubai and Saudi Arabia (new cities programmes) have the greatest potential … but this is also the case for other countries in the region.

12. FTTH in Middle East Who are the Players in the middle East Market Source: IDATE for FTTH Council Europe