Funding Internet Development

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• Funding Internet Development
• Banjul 5-9 June 2000
• by Terrefe Ras-Work
• Telecom today Infrastructure of Infrastructures
• Internet now Considered as Basic Service
• WorldTel proposes to be Partner to Emerging
  Countries

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Mission
CLOSING THE GLOBAL COMMUNICATION GAP
The key word Access to communication
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WorldTel will take the IP backbone where no IP
backbone been before
Vision

• Among the 3 biggest local IP backbone provider in
  the region
• The service provider (international
  or national) best choice.

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The WorldTel owners
AIG GE-Capital INTEL Reliance Industry (India) IT
Investment (Egypt) NatWest Kuwait Financial
Center IIG (Kuwait) Burgan Bank ITI
(HongKong) Mahavir Tel
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WorldTel Assembly of Governors
China India (Jordan) Kenya (Mexico) Pakistan Tanz
ania Uganda Zambia Zimbabwe
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Structure of The Internet Economy
Revenues
Jobs
Internet Commerce
Layer 4
USD 102 B
482,000
Intermediary/Market Maker
Layer 3
USD 58 B
252,000
Application Infrastructure
Layer 2
USD 56 B
231,000
Internet Infrastructure
Layer 1
USD 115 B
372,000
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WorldTel buzzword Internet Infrastructure
Media buzzword Internet Commerce
The perfect match in emerging markets
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• WorldTel opts for IP Technology for
• Emerging Markets
• To provide Voice and Data
• Short cut to Accelerated Development
• - Equipment costs have gone down
• - Access to Telecom now
  within
• reach of the masses
• BUT- BE WARE OF LICENSE FEES

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Is there a local market need and who are the
customers?
10

20
Corporate
SME
Advanced services
Private segment 1
Internet
Prepaid services
Basic services
80
Middle class segment 2
Private segment 3
No paying segment 4
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• Government org
• Schools
• Hospitals
• Internet centers

80
20
Internet
Basic services
Middle class segment 2
Private segment 3
No paying segment 4
ACCESS TO COMUNICATION
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Capex per line (5year)
13

Pricing
Operational cost
License
Capex/Line
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The most important player on the market. Does he
understand whats in it for him?
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• Regulatory issues
• License
• Frequency
• Numbering plans
• Policy ( Telecom )
• Access to telecom
• Education
• Pricing
• Privatization
• Liberalization

The government plays an important role and will
have an effect on the development of the market
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Target Network Architecture
Individual corporate customers
MDU Installations, Corporate and or residential
PSTN
GTW
Arcturus
JNW
Mazowe
Borrowdale
Individual residential customers
Centenary
STM-1 ( 155 MBPS 2)
Central
Glendale
Chitungwiza
Ruwa
Gweru
Warren Park
Marondera
Chegutu
Kadoma
Norton
Masvingo
Zvishavane
Individual corporate customers
Individual residential customers
Chiredzi
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Investment strategy

• Regional strategy
• IP backbone access
• Strong local investment partner
• Partners( technology ,services)

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PARTNERS
Technological center in London for network design

• Cisco
• Clara Net
• Telemax
• Generics
• Telia
• Detecom
• Bell Canada Int.
• Metromedia

Operation and service development
WLL implementation and operation
Technical dev on laser technology
Operational support
Operational support/co investor
Operational support/co investor
Operational support/co investor
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The Investment Portfolio

• Zimbabwe
• WorldTel India
• Bangladesh
• Axtel
• Chile
• Brazil
• Argentina
• CAT
• Russia
• CIS
• MSI

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WT Africa

• Country
• Name of the company
• Partner
• Ownership
• Strategy
• Exit
• Size of investment
• Services

Africa
Zimbabwe
Tanzania
COMESA
MSI
WT Zimbabwe
Comtel
Tanzania Telecom
MSI
Vodacom
PTC
Escom

10 Mobile op
Full SP
Broadband/WWL
Intern 14contr
IPO 00
BOT
Strategic partn
Strategic partn
x x
x x x x
x x x x
x
Voice Internet E-commerce Capacity and services
for operators
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• CONCLUSION
• WorldTel Created on Initiative of ITU gives
  highest priority to Africa
• WorldTel flexible in approach
• BOT Partner
• Equity Investor
• WorldTel has formidable Partners to make a
  Difference
• WorldTel has now Economy of Scale to Reduce
  Costs
• WorldTel welcomes Partnership with Governments
  and Private Operators to Develop
  Infrastructure