Funding Internet Development Banjul 5-9 June 2000 by Terrefe Ras-Work
• Telecom today Infrastructure of Infrastructures • Internet now Considered as Basic Service
• WorldTel proposes to be Partner to Emerging Countries
1
Mission
CLOSING THE GLOBAL COMMUNICATION GAP
The key word
Access to communication
2
WorldTel will take the IP backbone where no IP backbone been before
Vision
•Among the 3 biggest local IP backbone provider in the region
•The service provider (international or national) best choice.
3
The WorldTel owners AIG GE-Capital INTEL Reliance Industry (India) IT Investment (Egypt) NatWest Kuwait Financial Center IIG (Kuwait) Burgan Bank IT&I (HongKong) Mahavir Tel
4
WorldTel Assembly of Governors China India (Jordan) Kenya (Mexico) Pakistan Tanzania Uganda Zambia Zimbabwe
5
Structure of The Internet Economy
Revenues Layer 4 Jobs
482,000
Internet Commerce Intermediary/Market Maker Application Infrastructure Internet Infrastructure
USD 102 B
Layer 3
USD 58 B
252,000
Layer 2
USD 56 B
231,000
Layer 1
USD 115 B
372,000 6
WorldTel buzzword: “Internet Infrastructure”
Media buzzword: “Internet Commerce”
The perfect match in emerging markets
7
• WorldTel opts for IP Technology for
Emerging Markets
• To provide Voice and Data • Short cut to Accelerated Development
- Equipment costs have gone down
- Access to Telecom now within reach of the masses
BUT- BE WARE OF LICENSE FEES
8
Is there a local market need and who are the customers?
9
Corporate SME Private segment 1 Middle class segment 2 Private segment 3 No paying segment 4
Advanced services
20%
Internet
80%
10
•Government org •Schools
•Hospitals Internet
•Internet centers Middle class segment 2 Private segment 3 No paying segment 4 20%
80%
ACCESS TO COMUNICATION
11
Capex per line (5year)
1000 900 800 700 600 500 400 300 200 100 0 1994-99 2000 IP
12
Analog Digital Wireless Mobile IP IP
Pricing
Operational cost License
Capex/Line
13
The most important player on the market. Does he understand what’s in it for him?
14
Regulatory issues •License •Frequency •Numbering plans Policy ( Telecom ) •Access to telecom •Education •Pricing •Privatization •Liberalization
The government plays an important role and will have an effect on the development of the market
15
Target Network Architecture
MDU Installations, Corporate and or residential
PSTN GTW JNW Centenary Glendale Central STM-1 ( 155 MBPS * 2) Chitungwiza Gweru Kadoma Chegutu Warren Park Ruwa Marondera Mazowe
Individual corporate customers
Internet IX
Borrowdale
Arcturus
Individual residential customers
Norton
Masvingo Zvishavane
Individual residential customers
Chiredzi
Individual corporate customers
Fiber MMDS/LMDS 802.11
16
Investment strategy
•Regional strategy
•IP backbone + access •Strong local investment partner •Partners( technology ,services) 17
PARTNERS
•Cisco
•Clara Net •Telemax •Generics •Telia •Detecom
Technological center in London for network design Operation and service development WLL implementation and operation
Technical dev on laser technology
Operational support Operational support/co investor
•Bell Canada Int.
•Metromedia
Operational support/co investor
Operational support/co investor
18
The Investment Portfolio
•Zimbabwe •WorldTel India •Bangladesh •Axtel •Chile •Brazil •Argentina •CAT •Russia •CIS •MSI
19
WT Africa
•Country •Name of the company •Partner •Ownership
Africa
MSI MSI
Zimbabwe
WT Zimbabwe PTC
Tanzania
Tanzania Telecom
COMESA
Comtel Escom
Vodacom
•Strategy
•Exit •Size of investment •Services
Voice Internet E-commerce
10 Mobile op
Broadband/WWL
Full SP
Intern 14contr
IPO 00
BOT
Strategic partn
Strategic partn
x x
Capacity and services for operators
x x x x
x x x x
x
20
CONCLUSION
• WorldTel Created on Initiative of ITU gives highest priority to Africa • WorldTel flexible in approach • BOT Partner • Equity Investor • WorldTel has formidable Partners to make a Difference • WorldTel has now Economy of Scale to Reduce Costs • WorldTel welcomes Partnership with Governments and Private Operators to Develop 21 Infrastructure