Euro-Asian Submarine Cables An overview

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Beirut, October 25th-29th 2009 Euro-Asian Submarine Cables An overview Director Product Management IP & Data Services Telecom Italia Sparkle

Agenda The growth of demand in the mid term scenario Types of submarine cables Building blocks of multi-owner systems: The C&MA Restoration and Protection of submarine Cables A real case: cable cut emergency on Jan 30, 2008 The upgrades Submarine Cable Systems in the Med Basin Telecom Italia Sparkle network assets New Cable projects in the Euro-Asia-East Africa region 2

The growth of demand in the mid term scenario Several new systems are lining up In the next 2 years, a number of new submarine systems is expected to come to life: interested routes are primarily India to Europe and Trans Pacific. All the main regional players and most of European and US carriers are involved in these projects. 3 Telegeography

Investments in Submarine Cable Systems Bil. USD Source: TeleGeography Research 2008 PriMetrica, Inc. 4

Submarine cable types (1) Submarine cables have different shapes: simple, little, point-to-point segments long, multi-legged and spurred complexes simple rings Clouds of festoons Submarine cables have different parenthoods: Private cables, owned by one single company Bilateral cables, owned by the two landing parties Consortium cables, where a number of carriers join forces in the project 5

Submarine cable types (2) Consortium cables: one system, several owners The optical layer is common and undivided between Parties Ownership is proportional to investment in the system The SDH layer is individually used by Parties Complexity means flexibility means complexity! Capacity usage can vary: in size in topology from time to time 6

Building blocks of multi-owner systems: the Construction and Maintenance Agreement (C&MA) Cable System Configuration & Description. System Ready For Service Date and Duration of the C&MA. Ownership of Segments. Cable Management Structure. Acquisition and Use of Capacity. Increase of Capacity Upgrades. Allocation of Operation and Maintenance Costs. Ownership & Capacity Activation Schedules. 7

Restoration of Submarine Cables Only few systems have a ring based architecture and are therefore self-protected Most systems have fishbone architecture! The strategy: join forces with other cables with similar path Restoration is between Landing Stations The MARA (Mutual Aid Restoration Agreement) This service is not for free! 8

Restoration: An example Here is SMW-4, looking for alternative routing in case of failures And here is SAT-3/ WASC/SAFE, that may offer some alternative routing SAT- 3/WASC/SAFE SMW-4 9

Restoration: Another example SAT-3/WASC/SAFE SMW-4 SMW-3 10

Protection: Automatic Restoration Restoration traditionally means manual activation, on event, of preplanned routing plans Optimization of spare resources, combination of multiple restoration plans for multiple cable systems Automatic Restoration (equivalent to Protection on terrestrial networks) has been introduced SMW-3 and SMW-4 have implemented some SNCP protection between any pair on corresponding Landing Station Terrestrial interlinks, whenever necessary, have been provisioned and fully dedicated to complete the infrastructure Service continuity is becoming a must also in submarine cables! 11

A real case: cable cut emergency on Jan 30, 2008 Two cable cuts occurred about 10 Km out of Alexandria, Egypt coast, causing severe service disruption to Carriers and Service Providers relying upon either FLAG-FEA and SMW-4 Rome ITALY Palermo GREECE TURKEY Mazara Catania Marmaris Chania SMW4 FLAG-FEA Yeroskipos CYPRUS SMW3 TIS PAN EUROPEAN BACKBONE FLAG Euro-Asia (FEA) Fault LIBYA SMW-4 SMW-3 TIS POP LANDING STATION EGYPT Alexandria COLUMBUS III Port Said Suez ISRAEL TI Sparkle Global IP / Data Sales 12

A real case: cable cut emergency on Jan 30, 2008 Analysts and media report Internet connectivity is impacted as severely as: - 75% in Egypt and Pakistan - 50% in Emirates - 50% in Saudi Arabia - 10% in India 13

IP impacts of cable cut Jan 08: lost of Prefixes Università di Roma 3, RIPE NCC: Fiber Cut Jan 08, Analysis of Network Dynamics - March 2008 14

IP impacts of cable cut Jan 08: AS Paths turbulence On Jan 30th: - pick of AS Path Changes (green) - drop of Distinct AS Paths (blu) Regional AS Paths turbulence until repairs are completed Università di Roma 3, RIPE NCC: Analysis of Network Dynamics-March 2008 15

IP impacts of cable cut Jan 08: AS Paths Length (red) Conclusions: - Unreachable networks - Increased latency and congestion - Routing topology entropy - BGP instability Università di Roma 3, RIPE NCC: Analysis of Network Dynamics-March 2008 16

Cable cut Jan 30, 2008: Sparkle rescue plan to Europe and Singapore Marseilles Milano Roma TIS PAN EUROPEAN BACKBONE SMW - 3 Palermo Mazara Bizerte Chania Marmaris Yeroskipos SMW - 4 FLAG TW-1 FLAG SMW 4 SMW 3 Alexandria Suez Jeddah Fujairah Muscat TW-1 Karachi Cox s Bazar TIS POP LANDING STATION Taipa Mumbai Chennai Pyapong Danang Djibouti Cochin Colombo Mt Lavinia Medan Mersing Satun Penang Melaka Tuas Tungku Ancol TI Sparkle implemented in 24h some 25 Gbps of capacity to rescue some MEA and Asian carriers networks heavily impacted by the cable cut 17

The Upgrades (1) Submarine cable systems lifetime is today 15/20 years In this period the system is subject to several development activities: Increase in capacity Technical enhancements Upgrading a multi-owner system cable requires many decisions, to be agreed between all Parties Participation /Funding Technical design Planning Capacity distribution 18

The Upgrades (2) Not a potential development, but a significant part of the life of a submarine cable system Upgrades in today systems take place in the first 4 to 5 years from RFS Upgrades costs are clearly lower than initial investment Not an off-shore activity! Only specific parts of a system are normally involved This impacts on Parties Business Plans any co-owner must preserve its cost efficiency and market competitiveness 19

An example: History of upgrades on SMW-4 Demand of connectivity from South East Asia, India and the Gulf is strong: since its RFS in Nov. 2005, SMW-4 increases in capacity every year and half SMW-4 has advanced discussions on the next upgrade!! Capacity available in 2 years doubles the initial value 20

MENOG 5 Submarine Cable Systems in the Med Basin Goonhilly Penmarch Marseille Savona Barcelona Sesimbra Italy-Albania Valencia Las Palmas Palermo Athens Catania Tetouan Corfù Otranto Columbus III Istanbul Durres Otranto-Corfù-Bar Bari ALPAL-2 Bar MED Marmaris Mazara Algeri Annaba Bizerte Kelibia Italy-Tunisia Pentaskinos Malta Tripoli ALETAR Chania Italy-Malta Haifa IMEWE SMW-3 Tripoli Italy-Libya LEV Tel Aviv SMW-4 3 intercontinental existing systems: 24,500 route km in the basin, 16 Tbit/s design capacity 13 major intra-regional existing systems: 28,000 route km, 29 Tbit/s design capacity 21 Tartous Alexandria Suez

TIS European and Mediterranean Backbone TI Sparkle Mediterranean backbone TIS PAN EUROPEAN BACKBONE TIS SUBMARINE CABLE SYSTEMS AC-1,Apollo,FA-1,Yellow New York Newark SMW 3 PORTUGAL ATLANTIS2 Madrid Lisbon Sesimbra SPAIN Fortaleza Miami FA-1,TYCO Tetouan MOROCCO Bilbao UNITED KINGDOM Goonhilly Penmarch Bordeaux London Oostende Paris Barcelona Valencia Ibiza ALPAL 2 COLUMBUS III FRANCE Lyon Marseille BAR-SAV SMW 4 PENBAL Palma Ses Covetes El Djemila (Algiers) ALGERIA Norden Amsterdam GERMANY Dusseldorf Brussels Frankfurt Strasbourg/Kehl Milan Turin Zurich Savona Rome Annaba Bizerte Kelibia TUNISIA Hamburg Munich Trapani KEL-TRA ITALY Palermo Prague Catania Mazara IMEWE Tripoli Birkirkara SMW 3 22 Vienna MESTRE-UMAG LEV LIBYA Warsaw Bratislava BARI-DURRES GREECE Athens SMW 4 Chania IMEWE Planned Jan. 2010 TIS POP LANDING STATION Istanbul MED TURKEY Marmaris Yeroskipos CYPRUS Tripoli Lebanon Haifa Tel Aviv Pt.Said Alexandria ISRAEL Cairo Suez EGYPT Djibouti Jeddah

Middle East & South East Asia Backbone (SMW3 & SMW4) Goonhilly UK Penmarch France Norden Ostend Belgium Germany Marseille France Sesimbra Portugal ItalyChania Marmaris MazaraGreece Turkey Annaba Algeria Bizerte Tunisia Yeroskipos Tetouan Cyprus Morocco Palermo Alexandria Egypt Suez Djibouti City Djibouti Egypt Jeddah Saudi Arabia Fujairah UAE Muscat Oman Karachi Pakistan Mumbai India Cox s Bazar Bangladesh Chennai Pyapon India Myanmar Da Nang Shanghai Shantou Deep Water Bay China Hong Kong Taipa Vietnam Macau Cochin India Mt Lavinia Satun Thailand Penang Mersing Malaysia Colombo Medan Sri Lanka Indonesia Melaka Tuas Singapore China Keoje South Korea Tungku Okinawa Japan Taucheng Fangshan Batangas Brunei Taiwan Taiwan Philippines Jakarta Indonesia Perth Australia 23

Africa Canary Is. Lisbon Valencia Sesimbra Tetouan El Djemila Bizerte Annaba Kelibia Palermo Trapani Mazara Tripoli Chania Alexandria Marmaris Yeroskipos Suez Jeddah Fujairah Muscat Karachi Mumbai SAT-3 SAFE SMW-3 SMW-4 TRA-KEL AL-PAL / PEN-BAL MAZ-TRI ATLANTIS-2 Dakar Map Cotonau Accra Lagos Djibouti City Cochin Colombo Mt Lavinia TIS POP LANDING STATION Abidjan Douala to Fortaleza Libreville Cacuaco REUNION MAURITIUS Durban CapeTown (Melkbosstrand) 24

Transatlantic Backbone Palo Alto TIS BACKBONE IP BACKBONE TIS SUBMARINE CABLE SYSTEMS TIS POP LANDING STATION Los Angeles Dallas Chicago Ashburn Atlanta Newark Miami New York 1 New York 2 Flag Atlantic / Yellow / Apollo /AC 1 Flag Atlantic TYCO Columbus 3 Amsterdam Hamburg Warsaw London Dusseldorf Prague Frankfurt Brussels Nuremberg Bratislava Paris Basel Munich Vienna Zurich Bilbao Bordeaux Lyon Milan Turin Marseille Barcelona Rome Madrid Valencia Palermo Catania Mazara Annaba Bizerte Multiple protected rings on a combination of Flag Atlantic, Yellow, Apollo and TYCO Additional connectivity to Miami on Columbus III at STM-1 level 25

Latam Backbone Panama City SAC Lurìn Santiago TIS BACKBONE SUBMARINE CABLE SYSTEMS SUBMARINE CABLE SYSTEMS TIS POP LANDING STATION Lima New York St. Croix La Paz MAC Caracas Rio de Janeiro Sao Paulo Buenos Aires Fortaleza SAC Data Center in Miami, NAP of the Americas POP: Rio de Janeiro S. Paulo (2) Buenos Aires (2) La Paz Santiago de Chile Lima Panama City Caracas 26

TI Sparkle next move TI Sparkle promoted IMEWE, India, Middle East, Western Europe, a system launched on Feb.5, 2008, with an official signature ceremony in Rome, by the 9 carriers joining the project: TIS (Italy), TE (Egypt), STC (Saudi Arabia), PTCL (Pakistan), Bharti Airtel (India) FT (France), Ogero (Lebanon), Etisalat (UAE), VSNL/TATA Telecom RFS of the system is expected in January 2010. In 2010 IMEWE will be one of the very few cable of new generation (most likely two) serving the route India-Europe. IMEWE will not simply upgrade or compete with systems that already exist; it will extend capacity to under-served and developing markets as well as to complement existing infrastructure with physically diverse paths. 27

IMEWE - Configuration FRANCE Marseille ITALY Max Ultimate Capacity: 3.84 Tbps Initial Equipage: 260 Gbps Catania Tripoli LEBANON Pt. Said Alexandria Suez EGYPT SAUDI ARABIA Fujairah UAE PAKISTAN Karachi INDIA Jeddah 1 2 Mumbai Segment S3 Segment S2 28 Segment S1

New Cable projects in the Euro-Asia-East Africa region REGION IMEWE MENA ASIA GULF MED BASIN COUNTRY Pakistan India UAE Oman Saudi Arabia Lebanon Syria Egypt Turkey Greece Cyprus Libya Malta Italy France Monaco Gibraltar Portugal UK Sudan Djibouti Somalia Kenya Tanzania Mozambique Madagascar South Africa 29 SEACOM TE NORTH EIG HAWK EASSy EAST AFRICA Estimated RFS Q1 10 Q2 10 Q2 10 Q2 10 Q3 10 Q3 10 Source: TIS

Shùkran! giuseppe.valentino@telecomitalia.it 30