5/9/2013 The Benefits of FTTH Tony Al Makdissy Board Member Agenda About Us FTTH/B Global Ranking 2012 FTTH Market: MENA Drivers For Change Fiber In The Backhaul FTTH: Key Economic Driver Conclusion 1 5/9/2013 About Us Non-Profit Organization covering MENA Region Our Vision: A sustainable future enabled by Fiber to-the-Home Our Mission: Accelerate FTTH adoption in MENA Enhance Quality of Life Members: Vendors, SPs, Governments, … About Us: Committees Technology & Training Committee Market Development & Intelligence Committee Policy & Regulatory Committee 2 5/9/2013 About Us: Partnership & Education Regular cooperation with ITU Joint seminars with Fiber Optics Association (FOA) 1st Certified FTTH Training in the region FTTH/B Global Ranking 2012 3 5/9/2013 FTTH Market: MENA Highest average take-up rate of 41.1% UAE is No. 1 Jordan (1% penetration rate), Saudi Arabia (1.7%), and Qatar (22.8%) Growth of 188.4% or 257,000 FTTH/B subscribers between 2010 and 2012 Growth of 100.7% or 900,000 homes passed Would You … …rather give up your car or partner than your broadband internet? 16% YES 84% NO Source: Bitkom survey 4 5/9/2013 Drivers For Change Internet Users 2007 2011 TRAFFIC = EXPLOSION + + 2016 Users 3.4B Internet users by 2016 Devices 19B IP-enabled devices by 2016 Applications Video: 85% of Internet traffic by 2016 FTTH for Service Evolution DRIVES New Revenues Content & Applications New Devices New Services Network upgrade Stimulates Innovation Bandwidth Transformation ENABLES 5 5/9/2013 Consumer IP traffic 120,000 100,000 Petabytes / Month 30% CAGR 2011–2016 Other File Sharing (Other) Web/Data (Other) Web/Data (Video) File Sharing (Video) IP Video on Demand Internet Video 80,000 60,000 2% 1% 11% 6% 19% 22% 40,000 20,000 0 86% Video 39% 2011 2012 2013 2014 2015 2016 Source: Cisco VNI Global Forecast, 2011–2016 FTTH Vs. DSL Download of 1 gig File Upload of Blu-ray disc content - 27 min (5 Mbps DSL) - 1.3 min (100 Mbps FTTH) - 8 sec (1 gig FTTH) - 11 h (10 Mbps UP) - 7 min (1 gig FTTH) 6 5/9/2013 FTTH Vs. DSL “I’m never having kids. I hear they take nine months to download” ” European Mobile Data Traffic 3.0 Exabytes per Month 2.5 2.0 1.5 68% CAGR 2011–2016 Mobile VoIP (0.6%) Mobile Gaming (1.1%) Mobile File Sharing (3.0%) Mobile M2M (3.7%) Mobile Web/Data (19.0%) Mobile Video (72.7%) 1.0 0.5 0.0 2011 2012 2013 2014 2015 2016 Source: Cisco VNI Global Forecast, 2011–2016 7 5/9/2013 Fiber In The Backhaul • LTE: High data rates, requires more capacity • Legacy copper lines inefficient • Need to invest in backhaul upgrades Microwave or Fiber? Fiber In The Backhaul Challenges Benefits Capital Investment Long-term Investment Regulatory Risks Mutualization Geographical Limitations Capacity 8 5/9/2013 FTTH: Key Economic Driver • Accelerating the digitization system • Developing enhanced national economies • Catering demand for faster connectivity • Great investment opportunity and significant socio-economic benefits. • High impact on economic development FTTH: Key Economic Driver E- Health E-Government Online Entertainment E-Learning Smart Grids Cloud Computing Smart Systems FTTH E-books,Apps, Music 9 5/9/2013 To Conclude Where To Next? www.ftthcouncilmena.org 10 5/9/2013 THANK YOU “ــ ــرا www.ftthcouncilmena.org 11