NetIX Moving Traffic to the Expressway 2016

Company Presentation

NetIX: Moving Traffic to the Expressway

www.netix.net

Why NetIX?

NetIX’s next-generation network accelerates the Internet,

connecting content creators with users faster, cheaper, and

more directly than ever.

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Enhanced user experience

The User Experience Lags Expectations

Web-users expect a site to load in two seconds or less.

Slower response time directly affects the end-user’s seamless experience.

Few countries clear this threshold on average.

One reason for the problem is the roundabouts of current network architecture.

Avg. page load time in selected countries

Source: Akamai State of the Internet Report, QIV 2014

“With 65% of today’s 18-24 year olds expecting a site to load in 2 seconds or less we can predict that people will expect a 1-second loading time in the near future” [Nokia].

milliseconds

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Moving Traffic to the Expressway

NetIX Architecture – The Ethernet ExpresswayCurrent Architecture - Crosstown Traffic

NetIX provides a solution: an Ethernet expressway that bypasses circuitous routes

in the “crosstown traffic” of the global Internet.

NetIX is a Carrier Class Ethernet platform that interconnects members globally

without intermediary networks.

User tests show that NetIX shortens the route of traffic passing through the

platform by up to 39%.

Internet Exchange Point

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Every Millisecond Matters

32% shorter routing 90% of websites respond faster

Comparison of NetIX to three Tier 1 Internet Providers with popular sites shows:

Page-load time in 54 of Alexa Top 100 web sites

“Every millisecond matters.” ( Arvind Jain, Google engineer)

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4 500milliseconds

Median(54 Websites)

- 374 ms / -15%- 424 ms / -16%

- 1 085 ms / -33%- 430 ms / -11%

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As at 20.07.2015, 09.50 a.m GMT

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NetIX Slashes Bandwidth Costs

Results of actual use cases for NetIX member ISPs:

Price per Mbps decreased 24-27%.

International IP transit decreased ~50%.

Total IP bandwidth use (peering + International IP transit) increased.

Average Price per Mbps (IP Transit & Peering), 3 NetIX Global Internet Exchange (GIX) Clients

-27%Price per Mbps

-24%-27%

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Market Validated Business Case

NetIX Members NetIX Traffic (Gbps)

NetIX officially started in January 2013 with 6 members. Currently it has over 70.

NetIX attracted blue-chip companies such as Google, Akamai, Telefonica, Turk

Telecom, and Mail.Ru.

Traffic in the platform has grown from zero to 240 Gbps in less than 3 years.

NetIX ranks among the top 25 global platforms for exchange of IP Traffic [Wiki].

NetIX GIX provides direct routes to 85% of the Internet.

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Peering: Skype for ISPs

ISPs buy all local and

international connectivity

from high-cost Tier 1

providers

ISPs buy all international

connectivity (“IP Transit”)

from Tier 1

ISPs peer local traffic via

Internet exchange points

(IXPs) at much lower cost

NetIX globalizes peering

by interconnecting IXPs

ISPs peer locally and

internationally through

NetIX’s GIX service

Tier 1 needed only for

residual connectivity

Yesterday Coming SoonToday

Internet Peering: the business relationship whereby two companies reciprocally provide access to each other’s customers [Dr. Peering]

Tier 1

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Peering Outpaces IP Transit

Peering will come to dominate global IP traffic at the expense of transit.

[TeleGeography]

Many regions that currently rely on IP transit will gain wider access to peering.

Transit vs. Peering Volume Growth 2013-2020

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Global Asia Europe Latin America Middle East Oceania US & Canada Africa

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Faster, Cheaper, More Direct

Priority

CustomersIndustry Verticals Benefits

ISPs

• Internet Service

Providers

• Telecommunication

companies

• Faster: 90% of websites respond faster

• Cheaper: 26% average reduction of

connectivity costs

• More direct: 32% shorter connection paths

Content owners and distributors

• TV Channels

• Radio stations

• IPTV providers

• Online media

• Low fixed cost

• Secure distribution of content

• Bidirectional connection could enable

capturing usage behavior

• More reliable and geographically dispersed

distribution than alternative channels

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Core Service: Direct Connectivity

B2B, subscription–based, recurring revenue

business model.

Core service: direct connectivity over

carrier-class Ethernet network.

Value-added services: IP traffic

exchange, A/V distribution, virtual

LANs, remote access to major IXPs.

Distribution via direct sales and selected

channel partners: IXPs and Tier 2 ISPs.

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Service Portfolio Evolution

DDOS attack protection.

Self-provisioning of network.

Network function virtualization.

Marketplace for members

Enhancing network value for members, interconnecting:

• 13 new IXPs ̶ 3 interconnections in H2 2015

• 47 new content generators ̶ Cloudflare joined in QIII 2015

over the next 12 months.

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Network Expansion

Madrid, Milan, and Moscow PoPs to open in 2016.

Coverage to expand to 26 markets in 5 years, leveraging already strong European

presence.

13 Note: Shaded countries have currently active PoPs

Ken Lefkowitz, CEO

• 20 years leadership

experience in C-level and

board roles

• Extensive track record in

international sales/bus. dev.

• Accomplished deal-maker

• B.A., Economics, Wesleyan University,

Connecticut, USA

Neven Dilkov, Founder and Chairman

• 20+ years TMT experience

• Visionary serial

entrepreneur

• Founded Neterra in 1996

• Shaped the Bulgarian ISP/CATV ecosystem

• Pioneered Bulgaria’s first alternative

international interconnections

• B.S. summa cum laude, Computer Science

from West Virginia Wesleyan College, USA.

90+ Years Combined TMT Experience

Dean Belev, Product Manager (10+ yrs TMT experience)

• Co-creator of the NetIX idea; Leading product management and development

• Certified on Cisco , NSA, CNSS, & ITIL programs; B.S. in Business Informatics and

MSc in Distributed Systems & Mobile Technologies.

Yordan Kritski, CTO (10+ yrs TMT experience)

• Vast experience in IP/Ethernet Support Services, network planning, network

architecture design and implementation.

• MSc in Telecommunications.

Dan Ellenbogen, VP for Sales (30+ yrs of TMT experience)

• 30+ years experience in general management, business development, sales &

Marketing in communication and satellite service providers, such as Novero,

Satlynx and Spaceline.

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Mariyan Rangelov, CFO

• 9+ years of experience in treasury operations, financial risk management,

portfolio management, investment banking and financial analysis.

• Holds the Chartered Financial Analyst designation

• MBA in Finance from the University of Sheffield and a master’s in Finance and

Banking from Sofia University

Zsolt Papdi, Sales Manager

• 20+ years of experience in telecoms & technology sales

• Telco experience spans both wholesale and retail, notably at AT&T

• MBA in International Business from Case Western Reserve University

• MsC, Electrical Engineering, Budapest University of Technology and Economics

Contacts

For more information please contact:

Ken Lefkowitz, CEO+359 (88) [email protected]

Dan Ellenbogen, VP for Sales+49 (177) [email protected]

www.netix.net

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