Crossroad of Communications: Egypt s Commitment to The Future (Mohamed Saro) (Telecom Egypt)
Current EurAsia Routes, through the Med Gateway Germany UK Belgium France Italy Portugal Turkey Greece Cyprus Morocco Algeria Tunisia Lebanon Libya Korea Japan Syria Iraq Jordan Iran China Qatar Pakistan Egypt Saudi Arabia Taiwan Bangladesh U.A.E Myanmar India Oman Sudan Philippine Yemen Eritrea Vietnam Djibouti Ethiopia Thailand Sri Lanka Somalia Malaysia Maldives Singapore Kenya Tanzania Indonesia Mozambique Madagascar Australia Brunei
Forecasted international bandwidth demand on the Red-to- Med corridor will grow at an annual rate of 32% to reach 8.9 Tbps in 2018 Oceania/ Australia North America 1.2% Lat. America 22% 1% 21% 22% 10.3% 14.6% Africa 3.9% Middle East 3.3% 738 1,157 33% 24.1% Europe 42.6% World Internet Users by World Region (1733 Millions), 2009 Source: Internet World Stats 33% 66% 20% 20 Forecasted Med Corridor Int l Bandwidth Demand - Used and Restored Capacity (2009-2018) (in Gbps) 8,996 Asia 1,753 33% 29% 18% 19% 2,207 23% 36% 20% 20% 3,062 23% 38% 1% 19% 19% +32% 4,067 23% 38% 1% 19% 19% 5,192 23% 38% 1% 19% 19% 6,406 23% 38% 1% 19% 19% 7,680 23% 37% 1% 20% 20% 23% 35% 1% 20% 21% Restored Used GCC Levant Africa South- Asia Source: Telegeography,
Mediterranean Cable Cuts Trigger the Need for Resiliency and Route Diversity Third Cable Fault (April 2010) Second Cable Fault (Dec. 2008) First Cable Fault (Jan. 2008) Source: Telegeography, Seabed Depth Variation effect on cable cut selection by anchor Near Alex. Near Italy Near Italy SMW4, Flag SMW3, SMW4, SMW4 Flag, Go-1 Seabed Depth Variation Cable Fault by Anchor Cable Route Jan. Dec. Apr. 2008 2009 2010 Current Submarine Cables have pretty much the same path under the Mediterranean Sea equally vulnerable
Future EurAsia Routes, through East Med Gateway Germany UK Belgium France Portugal Italy System within system (TE North) Greece Turkey Cyprus Morocco Algeria Tunisia Lebanon Libya Korea Japan Syria Iraq Jordan Iran China Qatar Pakistan Egypt Saudi Arabia Taiwan Bangladesh U.A.E Myanmar India Oman Sudan Philippine Yemen Eritrea Vietnam Djibouti Ethiopia Thailand Sri Lanka Somalia Malaysia Maldives Singapore Kenya Tanzania Indonesia Mozambique Madagascar Australia Brunei
TE Submarine Network Reach and Potential Capability Germany UK Belgium France Italy Portugal Turkey Greece Cyprus Morocco Tunisia Algeria Lebanon Libya Korea Iraq Jordan Iran China Qatar Pakistan Egypt Saudi Arabia Taiwan U.A.E Myanmar India Oman Sudan Bangladesh Philippine Yemen Eritrea Vietnam Djibouti Ethiopia Thailand Sri Lanka Somalia Malaysia Singapore Kenya SEAMEWE-3 TE North IMEWE EIG FALCON-HAWK SEACOM SEAMEWE-4 ALETAR/BERITAR Madagascar TATA TATA Mozambique SEAMEWE-3 SEACOM 10 Tbps ALETAR/BERITAR EIG Tanzania FLAG IMEWE TE North Maldives SEAMEWE-4 FLAG FALCON-HAWK Japan Syria Indonesia 5 Tbps Australia Brunei
By 2010 TE will have 10 Way Diversity with TeraBit Connectivity with 60+ Countries Germany UK Belgium France Italy EIG Portugal Turkey Greece Morocco Algeria Cyprus Lebanon Tunisia SMW3 HAWK FLAG SMW4 Aletar IMEWE Korea TEN Japan Syria Iraq Jordan Iran Qatar Libya Saudi Arabia Egypt Egypt Pakistan China Abu Talat U.A.E Alex. Bangladesh Taiwan Myanmar Suez India Oman Sudan Eritrea Philippine Yemen FLAG Vietnam Zafranna FALCON Sri Lanka Thailand SMW3 Brunei SMW4 Malaysia IMEWE Singapore Djibouti Ethiopia Somalia Maldives Kenya SEAMEWE-3 SEAMEWE-4 FLAG FALCON-HAWK IMEWE EIG EIG Seacom/ TATA Tanzania Indonesia Across Egypt Diversity Levels Mozambique Madagascar SEACOM TATA Owned/ Consortium member ALETAR/BERITAR Landing only TE North Australia
The region and industry were not prepared for such an intense period of cable construction Piracy Route Congestion Various parts of both the EurAsia and EurAfrica (East Africa) routes are quite narrow, and the growing number of cables creates challenges in route engineering and permitting. On some recent projects, this has resulted in rework and cost overruns, Cable ships surveying, transiting and/or laying now need to take special security precautions that cost both time, money. These precautions have delayed some of the projects Submarine Business Hurdles Supplier Resource Constraints The created demands on supplier resources at levels not seen in several years, led to project delays. Strained supplier resources, Subcontractors who proved unprepared to fulfill their obligations New and Changing Landing Points and Cable Stations New landing parties were involved, Stations were at capacity, The imperative of diversity was controlling landing decisions, new landing sites and construction Egypt Permitting Issues Permit delays The number of systems requiring permits overwhelming the existing processes Changes in governmental requirements simultaneous with ongoing project permitting. Permit Delays Permitting is a significant barrier with major time implications due to various intense national jurisdictional requirements. The problem experienced in both landing and non landing parties
Route Congestion New and Changing Landing Points and Cable Stations Piracy Submarine Business Hurdles Egypt Permitting Issues Supplier Resource Constraints Permit Delays (Non-Egypt) Route Congestion Case Study (Sicilian Channel) The Sicilian Channel is a narrow part of Mediterranean; Malta divides the channel from the west into two regions. New cables have the choice of going north of Malta (close to Sicily), which is already congested with many cables, or going South of Malta closer to Tunisia. One new system Challenges Cable diversity with potential huge numbers of cable crossings (and associated maintenance impacts), Permitting risk and cost tradeoffs, made route engineering more challenging than normal. Effect Two new systems The route changes that resulted from permitting issues resulted not only in new surveys, but also changes to assembled cable sections in the factories. This rework itself have jeopardized originally-planned RFPAs. A system decided to go north of Malta to stay close to Sicily, while two other systems decided to go south of Malta to avoid this congestion and to allow for diverse routing.
Route Congestion New and Changing Landing Points and Cable Stations Piracy Submarine Business Hurdles Egypt Permitting Issues Supplier Resource Constraints Permit Delays (Non-Egypt) Piracy Case Recent unprecedented escalation of piracy in the Gulf of Aden, Indian Ocean and Somalia coast is another new threat to construction (and maintenance) of submarine cables. Challenges Cable ships surveying, transiting and/or laying through this region now need to take special security precautions that cost both time and money. Crews require special security training; vessels require extra security tools and personnel, and sometimes special security escorts (perhaps naval escorts) are required. EurAsia Route Effect These precautions have delayed some of the projects which were underway prior to the recent escalation of piracy. EurAfrica Route Piracy points around Africa, Gulf of Aden, Indian Ocean and Somalia coast, Source: international chamber of commerce www.icc-ccs.org
Piracy Route Congestion Supplier Resource Constraints Submarine Business Hurdles New and Changing Landing Points and Cable Stations UK Case The new set of EurAsia and EurAfrica projects required several new landing points and cable stations within the region. France Italy Turkey Greece Morocco Cyprus Syria Lebanon Iraq Jordan Tunisia Algeria Iran Qatar Libya Egypt either new landing parties were involved, Saudi Arabia U.A.E Pakistan India Bangladesh Myanmar Oman Sudan stations were at capacity, Yemen Eritrea Djibouti Ethiopia the imperative of diversity, new landing sites and construction. landing party agreements took time to negotiate, Permit Delays (Non-Egypt) Egypt Permitting Issues Germany Belgium Portugal Even in countries (or regions) where cable stations already existed because: Challenges New and Changing Landing Points and Cable Stations Sri Lanka Somalia Maldives SEAMEWE-3 SEAMEWE-4 FLAG FALCON-HAWK IMEWE Kenya Tanzania Mozambique landing permits were challenging, EIG operators were forced to change their landing sites, SEACOM TATA Madagascar ALETAR/BERITAR Effect many projects experienced delays in various countries. TE North Current and new projects trigger the need for Diversified landing stations Singapore
Route Congestion New and Changing Landing Points and Cable Stations Piracy Submarine Business Hurdles Egypt Permitting Issues Supplier Resource Constraints Permit Delays (Non-Egypt) Permits Delay Permits Cycle Responsibility?! Raising the Problem Effect The number of government permissions required for many of the recent regional construction projects is huge. Master permits from national Ministries (of Defence or Home Security), Operational permits, Environmental permits, Landing permits, etc., Varying interpretations of permits responsibilities, Differing interpretations of international guidelines, Unpredictable government procedures for permit approvals, Project permits have to be obtained from the various Governmental authorities (in landing countries and in the territorial Waters) An intense of national jurisdictional requirements These problems occurred in several areas of the Indian Ocean, Red Sea, and Mediterranean region. It creates major disruption to recent construction projects and significant barrier with major time implications. 1 2 Landing Parties Government s requirement for a local investor in the project prior to granting rights to transit territorial waters. Withdrawal of previously-granted permissions during the course of construction Unusually excessive delays in processing and approving landing permissions Non Landing Countries Permits required for cable routes within various countries TW and/or EEZ Government, owner, and contractor varying interpretation of UNCLOS guidelines, as it relates to the need for permissions; Government s permission to survey, but subsequent denial of permission to lay along a surveyed route; Government s claims to the right to charge fees (on a recurring, annual basis) for laying across their EEZ which is a different interpretation for the UNCLOS. Projects reengineered routes outside of such country s EEZ to avoid such fees, which many believe to be unjustified. Government, while not requiring a participant prior to construction, required the right to participate at some future date.
Route Congestion New and Changing Landing Points and Cable Stations Piracy Submarine Business Hurdles Egypt Permitting Issues Supplier Resource Constraints Permit Delays (Non-Egypt) A Critical Resource: Egypt Intense Projects The number of systems requiring permits overwhelming the existing processes; Changes in governmental requirements simultaneous with ongoing project permitting. Permits Approval New Governmental Requirements New Frame Works New Permits Delay in POW Permits agreed with new landings, diverse from the traditional Alexandria and Suez landings. Staring construction work with the approved choices for landing and crossings. Pre-agreement to new landings, diverse from the traditional Alexandria and Suez landings, was no longer valid, nor was some of the previous choices for landing and crossings making related construction unusable for this purpose. A new framework for international submarine cable permitting was introduced after many cables were already planned to land in Egypt; Permit approvals for many new cables, including TE s own TE-North Network crossing the Mediterranean and Egypt, were required to be changed to the new landings/corridor when the multiplicity of permits began for the many new cables which wanted to transit Egypt. months of delays for some of the projects transiting Egypt, and additional cost to local operator(s) for rework. All licensed international cable operators in Egypt and all new cable projects in Egypt were affected.
Route Congestion New and Changing Landing Points and Cable Stations Piracy Submarine Business Hurdles Egypt Permitting Issues Supplier Resource Constraints Permit Delays (Non-Egypt) A Critical Resource: Egypt Frame Work Influential The landings and the routes related are new and hence fundamentally diverse; The Red Sea landing in Zafarana avoids part of the shallow Gulf of Suez hence reducing marine build costs and submarine cable lay in cable cut prone region. The Mediterranean landing is a little more to the West hence in the general direction of the traffic bound to European shores and also diverse from Alexandria; The landings and their route integrates with the previous mesh of older existing submarine cables to raise the level of options and resilience of the Telecom Egypt East-West connectivity option. New Permits Abu Talat Alexandria Current Routes Zone New Routes Zone New Permits New Permits Suez Zafranaa
Egypt and the Future 1 Reusing 2010 Construction Permissions for Future Cables Any requisite permits for a new cable to land at TE s newly established cable stations in Zafarana (on the Red Sea) and Abu Talat (on the Mediterranean), shall be straightforward. These sites were considered as preferred landing sites for coming cables. Zafarana and Abu Talat cable station facilities have been designed with growth in mind. Fiber connectivity between Zafarana and Abu Talat cable stations, and their interconnection to long-standing facilities in Suez and Alexandria; is being developed with sufficient excess fiber connectivity to support many cable systems into the future. 2 Optical Network of Egypt (ONE) ONE will depend on TE own fibers laid in the primary and backup terrestrial routes of the existing submarine cables to be the core infrastructure that forms a cloud connecting different international customers at any required transmission level. ONE will capitalize on the terrestrial transmission technology being able to transmit more capacities than wet transmission and will provide diverse transport capacity between cable networks at various wavelength levels (e.g. 40 Gbps or 100 Gbps). 3 Egypt CrossConnect Transformation Mesh networks to the northeast of Egypt, across the Mediterranean to Europe, and to the southwest of Egypt through the Red Sea towards Asia (or East Africa) are a natural next step in the evolution of undersea networks in this region. TE envisions that the combination of reduced cable-connect charges in Egypt, ONE, and increased cable diversity east and south of Egypt, will together form very robust networks EurAsia international communication paths.
2 1 2010 Construction Permissions for Future Cables Optical Network of Egypt (ONE) Egypt CrossConnect Transformation Reusing Reusing 2010 Construction Permissions for Future Cables 3
2 1 3 Reusing 2010 Construction Permissions for Future Cables Optical Network of Egypt (ONE) Egypt CrossConnect Transformation TE Improved Resilience Network (ONE) for International Cables Crossing Egypt ONE Business Model - 1+N protected waves across Egypt, selective level of N ; System 1 to N Alexandria Landing Station Route 1 Route 2 - TE shall provide the DWDM equipment for ONE transport, precluding the need for cable owners to manage this purchase; - Business Model enhancements will be enacted as pay as you grow capacity purchase (lambda), System N+1 to M Abu Talat Landing Station Route 3 M Diversified Routes (Mediterranean Coast) Route 4 Route 5 Suez Landing Station - Carrier Class SLA, with industry-standard remedies; Diversified Routes with multiple FPs N Diversified Routes (Red Sea Coast). System 1 to N Optical Switch In Line Amplifier Route 6 Zafranaa Landing Station System N+1 to M
2 1 3 Reusing 2010 Construction Permissions for Future Cables Optical Network of Egypt (ONE) Egypt CrossConnect Transformation TE s Resilient Egypt-Europe Mesh- Enhanced by TEN, IMEWE and EIG Marseille Abu Talat SMW-4 Approach IMEWE Approach TEN Approach TEN Diverse Route Route from SFR is diverse from FT s routes for SMW4 and IMEWE -- SMW-3 SMW-4 ALETAR/ BEIRTAR TE North IMEWE EIG Slide 15 Abu Talat
2 1 3 Reusing 2010 Construction Permissions for Future Cables Optical Network of Egypt (ONE) Egypt CrossConnect Transformation TE s Resilient India Mesh- Enhanced by IMEWE and EIG Jordan Iraq Zafranaa Iran Zafranna Qatar Pakistan Saudi Arabia U.A.E India Oman Belgium Eritrea Yemen France Italy Portugal SMW-3 SMW-4 SEACOM TATA IMEWE Djibouti Morocco Tunisia Greece Lebanon Cyprus Turkey J Sri Lanka EIG -- Slide 14 Somalia
2 1 3 Reusing 2010 Construction Permissions for Future Cables Optical Network of Egypt (ONE) Egypt CrossConnect Transformation Interconnected MESHes Mediterranean Diversity (Stage 1) Egypt Diversity (Stage 2) Egypt-Asia Diversity (Stage 3) System 1 to 3 Alex. Suez System 6 to 8 Europe. Egypt Egypt Mesh (ONE). South Asia System 4 to 5 System 9 to 10 Abu Talat Zafranna Complementing ONE, Egypt s geographically central location between the Mediterranean Ocean and Red Sea segments of EurAsia undersea networks make it the ideal interconnect location for protection of these submersible segments of international communications. Mesh networks to the northeast of Egypt, across the Mediterranean to Europe, and to the southwest of Egypt through the Red Sea towards Asia (or East Africa) are a natural next step in the evolution of undersea networks in this region. TE is getting ready to sell new systems managed BW, meshed, with SLAs, and with delivery commitments, across Egypt as a new service as well as, dark fibers TE will enable who did not purchase on new networks to purchase capacity separately in the Red Sea & Med, and/or interconnect in Egypt
Conclusion Recent permit challenges will soon be behind us, and many new cables will be in service across Egypt The work completed in 2010 will provide a solid basis for future Red-Med and regional solutions The world s cloud is evolving as a set of interconnected Meshes ONE is a step to support evolving global carrier s needs, including independent management of Red & Med Meshes, thru Diverse managed bandwidth Trans Egypt solutions, backed up with SLAs and delivery commitments New & improved interconnect offerings
Thank you
2010 The 7th International Conference & Convention on Undersea Telecommunications Pacifico Convention Plaza Yokohama & InterContinental The Grand Yokohama 11 ~ 14 May 2010 www.suboptic.org