Local Loop (Access)Local Loop (Access)

AADSLDSL

What was the problem (Prior to introduction of DSL)?

Why ADSL is a/the Solution

ADSL Deployment within Gulf States

ADSL Deployment in Bahrain

Issues to address when deploying DSL (Problems/Solutions)

Conclusion & Recommendation

Presentation Presentation OverviewOverview

Bill Gates "gave his vote toward digital subscriber line (DSL) technology as the next big step in bandwidth" in his keynote address at the Comdex/Fall '97 trade show. - (Source: COMTEX Newswire dated November 11, 1997)

"We're sucking information through a straw when what we really need is a fire hose.” -Eckhard Pfeiffer, President and Chief Executive Officer, Compaq (Source: Comdex Keynote Presentation, December 1997.)

"The new DSL technologies are expected to drive a wide variety of applications in education, health care and telecommuting... allow(ing) consumers in homes and businesses to have access to high-speed services normally requiring expensive fiber optic line connections.” -Vinton Cerf, MCI's Executive Vice President of Internet Architecture. -(Source: interview published April 22, 1997 in the CyberTimes on-line version of The New York Times)

"We want to get more bandwidth and capacity out of our existing copper loop using ADSL.” -Duane Ackerman, President and CEO of BellSouth(Source: interview published March 31, 1997 in CommunicationsWeek, p. 14)

What was the problem What was the problem (Prior to introduction of ADSL)(Prior to introduction of ADSL)

0 1000 2000 3000 4000 5000 6000 7000 8000

14.4K

28.8K

56K

ISDN

G.lite ADSL

Full ADSL

Maximum Speed - Actual speed will vary

Why ADSL is a/the Solution - 1Why ADSL is a/the Solution - 1

Providers:• Cost effectiveness (relative to fiber)

• Marketability of Applications

• Off-load Internet Traffic from Switches

Users:

• Economical Bandwidth

• Always on Connectivity

• Used for more than one service

• Security

• Quality

Why ADSL is a/the Solution - Why ADSL is a/the Solution - 22

What can I use ADSL for?What can I use ADSL for?

High-speed Internet access Corporate Local Area Network (LAN) access E-Commerce Telecommuting / Virtual Private Network (VPN) Distance learning Video-On-Demand Voice over Internet Protocol (VoIP) / IP dialtone Video conferencing Medical imaging Real-time information exchange Entertainment - online gaming

Gulf State DSL Supplier

Bahrain Alcatel

UAEEricsson, Lucent, Juniper, Cisco

Saudi Alcatel, Lucent

Kuwait Alcatel

Qatar Alcatel, Cisco

Oman

ADSL Deployment within Gulf States - 1ADSL Deployment within Gulf States - 1

Suppliers of DSL

ADSL Internet Connections in the Gulf States by Country, 2002

10.5

5.1

0.21.4

18.9

0.00.02.04.06.08.0

10.012.014.016.018.020.0

Kuwait Bahrain Qatar SaudiArabia

UAE Oman

AD

SL

Co

nn

ecti

on

s

(

000)

ADSL Deployment within Gulf States - ADSL Deployment within Gulf States - 22

Gulf State Population HouseholdsInternet

CustomersDSL

CustomersDSL as % of Internet

Bahrain 720,000 111,000 51,000 5,100 10.0%Kuwait 2,330,000 329,000 215,000 10,500 4.9%Oman 2,720,000 384,000 43,000 - 0.0%Qatar 810,000 94,000 22,000 200 0.9%Saudi Arabia 24,000,000 3,812,000 625,000 1,400 0.2%UAE 3,740,000 615,000 314,000 18,900 6.0%

ADSL Deployment within Gulf States - 3ADSL Deployment within Gulf States - 3

GCC average: 2.8%

Note: GCC average is calculated based on total DSL Customers divided by total Internet Customers within GCC.

ADSL Deployment in Bahrain - ADSL Deployment in Bahrain - 22

How do we connect our Speednet customers?

PSTNATM

ATM NODE

DSLAM

Inet Platform

ADSL Deployment in Bahrain - 3ADSL Deployment in Bahrain - 3

e

BRAS

Internet

e

DSLAM

Video Server

Management Controller

Encoder

DSLAM

A

TM

PC forInternet Access

e1

Splitter Amulet

ADSL STB

TV

PC forInternet Access

e1

Splitter Amulet

ADSL STB

TV

PC forInternet Access

e1

Splitter

Amulet

ADSL STB

TV

ADSL Deployment in Bahrain - ADSL Deployment in Bahrain - 44

LAN

Internet Acccess Services Revenue Comparison (2002)

0%10%20%30%40%50%60%70%80%90%

100%

Jan

Feb Mar Apr

May Ju

n Jul

Aug Sep OctNov

Dec

% o

f T

ota

l A

cces

s R

even

ue

Speednet

Inet LL & FR

Inet Prepaid

Inet 900

Inet ISDN

Inet Dial -up

ADSL Deployment in Bahrain - ADSL Deployment in Bahrain - 55

Worldwide Broadband ConnectionsWorldwide Broadband Connections DSL Continues to DominateDSL Continues to Dominate

Worldwide BB to reach 225 million connections in 2006

DSL largest market worldwide, and expected to remain so to 2006: Relies on current infrastructure, self installation as high as 70% in US

Cable modem most viable in markets with already installed cable systems

FWB not suitable for mass market deployment: costs, not suited for wet or mountainous geographies, high license fees in Europe

0

50

100

150

200

250

2002 2003 2004 2005 2006

Metro ethernet

FWB

Cable modem

DSL

Local Loop Unbundling -Local Loop Unbundling - Doomed to Doomed to failure?failure?Local Loop Unbundling -Local Loop Unbundling - Doomed to Doomed to failure?failure?

Efforts to loosen incumbent grip on local loop by regulators generally fruitless in Europe, US, A/P

Incumbent NSPs protecting their competitive advantage (sole access to local loop)

Forcing incumbents to permit competitive NSPs access to local loop misguided:

Lack of information on condition of local loop to competitive NSPs (sometimes, even to incumbent)

Technical & logistical complexity: outdated technologies

Time: Long legal challenges by incumbent detrimental to competitive NSP business models

Wholesale Network Access - Wholesale Network Access - The only viable The only viable solution?solution?Wholesale Network Access - Wholesale Network Access - The only viable The only viable solution?solution?

Experts believe creating equitable wholesale market (most practical solution).

Regulators must: Ensure incumbent offers wholesale service Bring down wholesale prices in rapid timeframe Proper & equitable wholesale price controls is a must Avoid cross-subsidization by incumbent through

transparency and accounting separation of incumbent wholesale & retail operations

Conclusion & Conclusion & RRecommendationecommendation

ADSL provides a new way to use existing phone lines. It’s faster! It’s always on! Voice and data on one line at the same time! DSL leading the way in broadband deployments Cable modem is limited by low CATV installed base Broadband Satellite & Metro Ethernet sporadic and

limited ADSL is the best way to get online! Development on ADSL is still progressing e.g. ADSL II+ We Should think of peering and local content

To To bebe or not to be or not to beDSLDSL

As an interim solution

Using existing copper wire for broadband access

Very quick deploymentVery cost effective

Standardised already

Thank You

Appendix

CountryMarket Segment

Scheme/PackageSpeed (KBPS)

Flat Rate 256

Flat Rate 384

Volume Based with Threshold 128

Volume Based without Threshold 128

Flat Rate 256

Flat Rate 512

Volume Based with Threshold 256

Volume Based with Threshold 512

BahrainBD280

BD40

BD50

BD15 for up to 400MB, BD0.035 per MB above the BD5 Fixed monthly charge,

BD0.045 per MB.

BD450

BD80 for up to 2GB, BD0.035 per MB above the 2GB.

Residential

Business

Tariff

BD120 for up to 2GB, BD0.035 per MB above the

Tariff

BBahrain ADSL Tariff -ahrain ADSL Tariff - 1 1

Qatar Residential Flat Rate 512

Residential Flat Rate 384

Business Flat Rate 512

BD77.70

BD25.60

BD112.80UAE

QatarQatar & & UUAE ADSL Tariff -AE ADSL Tariff - 22

1 Month BD23

3 Months BD66

6 Months BD126Annually BD237

1 Month BD323 Months BD90

6 Months BD170

Annually BD263

1 Month BD51

3 Months BD148

6 Months BD290

Annually BD480

1 Month BD823 Months BD2406 Months BD448

Annually BD859

1 Month BD1393 Months BD398

6 Months BD758

Annually BD1,440

Kuwait (Qnet)

1024

Residential Flat Rate

64

128

256

512

Kuwait Tariff –Kuwait Tariff – 3.a3.a

64

128

192

256

384

512

768

1024

2048

4,887

9,282

Kuwait (Qnet) Business Flat Rate

442

821

1,200

1,560

1,894

2,715

3,473

Kuwait Tariff –Kuwait Tariff – 3.3.bb

Gold BD72Silver BD62

Daytime BD52Government BD47

Gold BD108Silver BD98

Daytime BD88Government BD65

Gold BD143Silver BD133

Daytime BD123Government BD82

Saudi (Atheer)

64

128

256

Flat Rate

SSaudi Tariff –audi Tariff – 44

DSL HistoryDSL History

Bell Labs discovers a new way to make traditional copper wires support new digital servicesPhone companies start deploying High-Speed DSL (HDSL) to offer T1 service on copper lines without the expense of installing repeaters.

Phone companies begin to promote ADSL as a way to enter the video market.

Innovative companies begin to see ADSL as a way to meet the need for faster Internet access

ADSL is being deployed for fast Internet access in the United States, Europe, East Asia, South America and across the globe

Singapore Network launched the first commercial ADSL

1985 -

1990 -

1995 -

1996 -

1997 -

Now -