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IPT market Development in the Caucasus Region

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Europe and Caucasus Region

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Caucasus and Central Asia

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Caucasus Region

• Georgia• 4,5 mil. – Population• 12,6 billion $ - GDP• 30% of Internet Users

• Azerbaijan• 8,3 mil. - Population• 44,3 billion $ - GDP• 44% of Internet Users

• Armenia• 3 mil. - Population• 8,8 billion $ - GDP• 47,1 % of Internet Users

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Key Player ISP’s in Region• Georgia

• Silknet• Foptnet• Caucasus Cable System• GRT (Georgian Railway Telecom )

• Azerbaijan• Delta Telecom

(main wholesale ISP)• TEC - Trans Euro Com

(Alternate FO network owner)

• Armenia• Armentel• Fibernet• GNC Alfa

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FO development - stage 1

• Foptnet (TAE project fiber optic cable)– Cable installation finished in 2000– DWDM in 2010-11,– 40 Gbps Transferring Capacity– Length 433 km

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TAE (Trans Asia Europe) MAP

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FO development - stage 2

• Georgian Railway Telecom – GRT (TRACECA project)– Cable installation finished in 2003– CWDM in 2007,– 60 Gbps Transferring Capacity– Length 620 km

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TRACECA MAP (Caucasus region)

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TRACECA MAP (Caucasus region)

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FO Cable resource owners in region

• Silknet (former State Telephone Network Operator)– Uses the same infrastructure as GRT (TRACECA project FO Trunk)– DWDM in 2007-2008,– 80 Gbps Transferring Capacity– Length 620 km

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FO Cable resource owners in region• Caucasus Cable System (Poti – Balchik Black Sea FO cable)

– Cable installation finished in 2008– DWDM equipment,– 1920 Gbps Maximum Transferability– Length - 1200 km– In Poti interconnected with GRT Infrastructure

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Negative Factors in Region

• Luck of redundancy in region from one ISP;• Non-equal business environment in Georgia-

Armenia-Azerbaijan;• Partially closed market for non-local wholesale ISPs.• Difficult political situation between Armenia-

Azerbaijan

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Positive Factors in Region

• Alternate routs to penetrate in region

• Only 40% average Internet users in region

• 58-60 milliseconds time delay from Europe

• Opportunity to penetrate Iran market

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Iran Market• Iran

• 77 mil. – Population• 863.5 billion $ - GDP• 43.2% of Internet Users• Telecommunication Company of Iran (TCI) – Leading Iranian ISP

• TCI Prices for Global IP resource• 1024 kbps – 10,800,000 Rials = 1,031 USD• 2048 kbps – 27,000,000 Rials = 2,579 USD

(source: http://www.tci.ir/s19/page2.aspx?lang=En)

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Internet in India• India

• 1,173 mil. – Population• 4.046 trillion $ - GDP• 8.5% of Internet Users

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Submarine Cable Map 2011

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Global Internet Map 2009

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Used Sources• www.telegeography.com• www.internetworldstats.com• www.wikipedia.org• www.itu.int• www.tci.ir• www.grt.ge• http://business.mapsofindia.com/india-gdp• Ministry of Economics of Georgia• Georgian National Commission of Communications• The CIA World Factbook• TRACECA project documents• TAE project documents• www.transeurocom.az• www.rozvytok.com

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George Gotoshia-

“Quantum Group” ltd-

Tel.: +995 77 22 22 88E-mail: george@gotoshia.com