Responding the Challenges of Continuing IP Traffic Growth

Eurasia Highway
IP TRAFFIC DRIVERS IN CENTRAL & EASTERN EUROPE
For past five years IP grew 4.6 times in Central & Eastern Europe
Private customers consume over 80% of total IP traffic
Mobile data grow fast, but it is still on enfant stage in traffic volume
Video is the contributor №1 in traffic volume
Source: Cisco, 2012

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BROADBAND SERVICES IN RUSSIA
Source: IKS Consulting
Penetration of broadband services will reach ~58% of total households that is closed to top limit
While number of broadband subscribers is going to saturation, a “heavy” video supports total traffic growth
As a result telecom carriers have to transit more and more IP traffic
Russia: MB per Minute for Internet Video
Source: Cisco

Eurasia Highway
IP transit demand is fast growing segment, CAGR 80% in 2009 - 2013
Russia generates 65% of total international IP uplinks in CIS
~ 50% of CIS countries uplinks (excluding Russia) go through Russia
Geographically IP traffic is focused to:
Russia ~ 60 - 75%
Europe ~ 25 - 35%
Others < 3 - 5%
IP TRANSIT VIA RUSSIA
Source: TeleGeography

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TTK AT GLANCE
Largest Fiber-Optic Backbone in Russia
length — 75 000 km
transmission capacity — up to 3200 Gbps
over 1000 access nodes in 78 Russian regions
20 cross-border interconnections
telecom bridge between Europe & Asia
Comprehensive Telecom Solutions
layout of enterprise networks based on advanced technologies
full spectrum of fixed voice services
network security & monitoring
building of telecom infrastructure
wholesale services
Guaranteed Quality
certified services
information security
SLA
Own Access Infrastructure
local access networks in more than 180 Russian cities
international gateways in London, Frankfurt, Amsterdam, Stockholm, Hong Kong, Tokyo

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MARKET POSITIONS
Market Share in the Russian Market
Source: Direct Info, 2012
Enterprise
Networks
Europe – Asia Transit
(via Russia)
Telecom Carrier
Non-Voice Services
Enterprise
Long-Distance Voice Services
TTK is fifth largest telecom operator in Russia - CNews Analytics 2012

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TTK BACKBONE
Transmission Capacity — up to 3200 Gbps
Multiple ring topology & high service availability – up to 0.9995
Automatic restoration switch for redundant services < 55 ms
Service restoration time < 4 hours
Maintenance team - every 200 km
22 international gateways: Finland, Estonia, Lithuania, Latvia, Poland, Belarus, Ukraine, Azerbaijan, Kazakhstan, Mongolia, China, North Korea, Japan
International nodes: London, Stockholm, Amsterdam, Frankfurt, Hong Kong, Tokyo
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Today TTK offers both IP transit and clear channels from the Russian border to major European destinations:
London
Amsterdam
Frankfurt
Stockholm
Hong Kong
Tokyo
Capacity – up to 10GE or 10G
Total transit TTK capabilities are exceeded 3 Tbps in Central Russia due to implementation of 10& 40G DWDM systems and development 10GE IP MPLS
> 3 Tbps
TTK CAPABILITIES