Bridging the West to East April 2010 Dumitru VLAD, GM Commercial Affairs Data Division.

Bridging the West to East

April 2010

Dumitru VLAD, GM Commercial Affairs Data Division

1. REGULATORY ENVIRONMENT IN ROMANIA

2. MARKET OVERVIEW

3. ROMTELECOM – the Bridge

Bridging the West to East | April 2010 | Dumitru Vlad

3Page: 3

Regulatory Environment in Romania

Market liberalization

20032002

Voice interconnection Carrier selection Leased Line Termination Segment

Unbundle Local Loop(total & shared access)

2004 …… 2007 2008

Carrier Preselection

Closing Numbering Plan Number Portability (ACQ)


4Page: 4

Fixed Telephony – penetration rate

48 alternative operators

24% fixed penetration

Market Overview – Fixed Market

Source: ANCOM Survey – July 2009

Operators market share based on access lines no.


5

Mobile Telephony – penetration rate

134% mobile penetration

29 mil mobile users

Market Overview – Mobile Market


Mobile Telephony – The Dynamic of total mobile services users


6Page: 6

12,32% internet access penetration

No. of Internet service providers

Market Overview – Internet Market


Broadband – penetration rate


7Page: 7

No. of users based on fixed access type

2,65 mil internet connections

Internet users type – residential/ business




8

EU Broadband Internet Connections

Source: EU Commission working doc. – July 2009



9

EU Broadband Internet Connections /Penetration Rate

Source: EU Commission working doc. – July 2009


12.3% penetration rate below EU27


10Page: 10

35% PC penetration - the lowest in EU

Personal Computers /Penetration rate (100 households)

Source: Eurobarometru “E-Communications Household Survey”, p 49 – June. 2009



11Page: 11

Despite very low prices & penetration, Romania sits among

World Leaders in quality of broadband service

Average Internet Connection Speed by Country High Broadband Connectivity, Fastest Countries

Source: “State of internet” report for Q2 2009 published by Akamai



12Page: 12

Complete TELCO PortfolioVoice, Data & Internet Services fix and mobile

High Speed Internet Access2005

Managed MPLS VPN2005

ClickNET ADSL2005

DOLCE2007

CyberHost HDC2006

First broadband service by Romtelecom

Market leader after 4 years

Romtelecom’s success story

Digital TV

High tech

CDMA Mobile portfolio 2009

Fix Mobile Convergence2008

Product of the year

ROMTELECOM Portfolio – Retail Products Summary

………… to become a complete telecommunication services provider


13Page: 13

Romtelecom Portfolio – Wholesale Portfolio Summary

VOICE SERVICES

TRAFFIC TRANSITTRAFFIC TRANSIT1

TRAFFIC TERMINATIONTRAFFIC TERMINATION2

Access to the Romtelecom network, the most extensive fixed network within Romania

High quality SDH/DWDM transport technology, supporting premium quality PSTN and ISDN services with CLI (Calling Line Identity) guaranteed

Direct access to all mobile operators’ networks within Romania

Highest capabilities to reach other fixed alternative operators within Romania, via direct interconnection with national operators

High quality-of-service for Premium Transit service (over 70 direct international interconnects, a complex Traffic Management System, automatic detection of quality issues and early warning mechanisms)

Over 16,000 international circuits available


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DATA SERVICES - Layer 1 services

LEASED LINESLEASED LINES2

Suitable for voice services or other data transmissions between customer locations

requiring high quality of service level.

100% national coverage using Romtelecom SDH/DWDM network

International coverage through Romtelecom DWDM network and interconnections with foreign operators

POP 2 POPPOP 2 POP1

Point-to-point, digital, transparent and symmetric connectivity.

Speeds between 2 Mbps and 10 Gbps (Narrowband / Broadband / GigaLink)

Scalable, efficient and flexible solutions

WAVELENGTHWAVELENGTH

National and international connectivity in Romania and across the Balkans

A reliable solutions for high capacity transport requests

Transport capacities of 2.5 Gbps and 10 Gbps

3


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CLEAR CHANNELCLEAR CHANNEL1

Point-to-point, permanent and dedicated connectivity for data transfer, with symmetrical bandwidth and end-to-end payload transparency between two sites across Romania

VLAN transparency

PDU transparency (STP/VTP/CDP)

Benefits: cost saving (traditional LL) versatility (QoS options, bandwidth

range, service customization) Flexibility (CPE package) resilience (STP transparency) competitive SLA (up to 99.99%) Professional helpdesk 365/24/7

DATA SERVICES - Layer 2 services

L2 CONNECTL2 CONNECT2

cost effective alternatives to connect two sites located beyond their own network, by using Romtelecom international network

VLAN and PDU transparency (STP/CDP/VTP tunnelling)


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IP CONNECTIP CONNECT1

provides a mutual exchange of traffic between Romtelecom and ISP’s IP networks, and/or Internet access

IP Transit & Peering

The best routing paths to Romtelecom customers & cost effective solutions for Internet access needs (routing protocol BGPv4)

Benefits:

Best routes to Internet Service availability up to 99.9% Cost savings by bundling IP services

on the same port Scalable, efficient, and flexible

solutions of IP traffic management Private connections using optical

fiber/in Romtelecom collocation centers Professional helpdesk - 365/24/7

INTERNET BROADBANDINTERNET BROADBAND2

premium Internet access service through a separate digital leased line connecting the end user’s location to Romtelecom closest POP.

flat-rate Internet access services at speeds up to 2Mbps

INTERNET SERVICES


17Page: 17

www.balcan-ix.net


Two options for peering servicesPublic PeeringVirtual Private Interconnection

Access to IP networks to be connected in all service access points.

Benefits Countrywide coverage Data confidentiality High service reliability & availability Competitive pricing Access to a wide range of telecom wholesale services 24/7 customer support

INTERNET EXCHANGE PLATFORMINTERNET EXCHANGE PLATFORM1


18Page: 18


Offers network and service operators a large variety of choices for VPN connectivity (MPLS IP VPN)

VPN Any2Any: allows direct interconnectivity between locations VPN Hub & Spoke: fits the communication needs of customers requesting for all locations to communicate only with/ via the Headquarter

Benefits: Simplified Accounting Flexibility & Transparency High Efficiency & Reliability Security Strong SLAs for QoS

INTERNATIONAL MPLS VPNINTERNATIONAL MPLS VPN1


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ROMTELECOM International Network


20Page: 20

A wide range of data services, Internet, voice termination and transit

Extensive national network, with one of the most modern backbone in Eastern Europe

Gateway to Frankfurt of 520 GB over 3 redundant routes

A main player for easy access to Internet all across the region, provided at competitive

prices, best quality and close to customers Points of Presence

An active partner for regional peerings

Professional carrier-grade help desk

services available 365/24/7

ROMTELECOM – the Bridge


21

Q & A

Thank you!

[email protected]

Phone: +40 21 400 5001Email: [email protected]: www.romtelecom.ro/en/carrier-services Palatul Telefoanelor, 35-37 Victoriei St., 6th floor, 01006 1st district, Bucharest, Romania

Bridging the West to East April 2010 Dumitru VLAD, GM Commercial Affairs Data Division.

Documents

data internet services

internet access penetrationno

dumitru vlad1

state of internet report

mobile telephony

ancom survey

mobile operators networks

fixed access type2