Baltic Highway is a superior fiber-optic infrastructure that will allow the transmission of data from Russia and Asia via the Baltic States, Poland, and Germany at n*10 Gbps data rates. In order to ensure high-quality data transmission at high data rates, the most up-to-date and widely applied technology DWDM is used.

1. «Baltic Highway»
Opening Event, Riga
September 26, 2012
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)

2. New route - «Baltic Highway»
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Juris GULBIS

3. Benefits of the Project for Latvia and Baltics
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Juris GULBIS

4. «Baltic Highway» benefits for Latvia
• Increased access speed to Broadband
International web-based Internet
speed
content.
• Infrastructure to develop Internet
based e-services in East and Source: Akamai,1Q,2012
West directions.
Broadband Internet market
Source: Lattelecom
Residential Business
Latvia Latvia
64% 85%
Lattelecom Lattelecom
share share
44% 63%
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Juris GULBIS

5. «Baltic Highway» benefits for Baltics
• To facilitate more than half of Lattelecom International Internet traffic (GBps)
Source: Lattelecom
growing Lattelecom Internet 129
96
traffic
46
26
5 12
• Enables to participate in Internet
2007 2008 2009 2010 2011 2012
transit service connecting
Russia, Asia, and Europe
Lattelecom International Internet traffic by routes
(forecast)
Source: Lattelecom
Traffic via other routes 36%
Traffic via Traffic via
MegaFon 28% Deutsche Telekom 36%
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Juris GULBIS

6. Role and Benefits of the Project for Western
Europe and USA
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Holger MAGNUSSEN

7. Deutsche Telekom – profile.
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Holger MAGNUSSEN

8. Products & services.
Partner services &
Consumers Business customers
platforms
 Modern mobile &  Information &  Partner for infrastructure
broadband experience communications technology access and network services
 Television solutions (ICT)  Platforms & co-operation
 Online services  Outsourcing & cloud services projects
 Intelligent networks for for innovative services
 Cloud solutions
Health, Automotive and
Energy
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Holger MAGNUSSEN

9. Trends & technologies.
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Holger MAGNUSSEN

10. Deutsche Telekom – transformation.
Transformation
From a state-owned
telecommunications
company
to a service provider:
My First Choice for
Connected Life and
Work
for customers
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Holger MAGNUSSEN

11. Deutsche Telekom
International Carrier Sales & Solutions (ICSS).
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Holger MAGNUSSEN

12. Bridge for Western Europe
to Baltic states, Russia and Asia.
• Baltic Highway provides a
robust, high-capacity and low Capacity Europe-Asia
25,000
latency bridge to Baltic
20,000
states, Russia and Asia
Gbps
supported by reliable partners. 15,000
10,000
• These factors are critical for 5,000
financial institutions, wholesale 0
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
carriers or large corporate
customers from WE and US for Total Used Capacity
their transactional environments …for Internet
…for switched voice
and disaster recovery solutions. …for private networks
Source: TeleGeography
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Holger MAGNUSSEN

13. Extended Access
to Baltic & Russian markets.
• Deutsche Telekom ICSS offers Deutsche Telekom & Affiliates
services to the carrier and
corporate segments in Baltic
countries and Russia.
• New DWDM infrastructure and
established partnerships will
enable Deutsche Telekom ICSS
to offer additional flexibility and
new services in the markets
covered by Baltic Highway.
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Holger MAGNUSSEN

14. Baltic Highway - New opportunities for
Russian and Asian markets
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Svetlana SMIRNOVA

15. About MegaFon in brief
Revenue, $ bln
13% Revenue growth in 2011
+ 11%
83 Full coverage of All
Russian regions
5,85 6,06 7,18 8,09
63,99 Million subscribers
of Russian population live
75% on the territory, covered by
5,85 6,06 7,18 8,09 Megafon’s 3G network
2008 2009 2010 2011
 The highest net income among Russian mobile Big-3
 The highest revenue from mobile data transmission in Russia
 The highest investing rating in Russian Telco market (Baa3, Moody`s)
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Svetlana SMIRNOVA

16. MegaFon`s business markets in Russia
Enterprise business Wholesale business
• #3 in mobile • #3 in IP connectivity
• 9% overall revenue market share • #3 in Data transmission services
• 17% overall revenue market share
Residential clients Governmental agencies
• #2 in mobile overall
• #2 operator overall
• #1 in mobile data
• 8% overall revenue market share
• 28% total mobile revenue market share
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Svetlana SMIRNOVA

17. MegaFon in Baltic Highway Project
Possibility to connect telco services in
Russia and CIS based on MegaFon`s
and it`s partners` networks
Direct routes to Moscow and St.
Petersburg with minimum latency
Saint Petersburg
“Ring” back up for each route
Pskov
Riga Smolensk
Moscow
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Svetlana SMIRNOVA

18. «Baltic Highway». Benefits for Russia
Multinational companies market
IP traffic growth rate in Russia
growth rate in Russia
+ 40% + 5%
2011 2012 2013 2014 2011 2012 2013 2014
New level of internet More possibilities for latency
access quality (less signal critical corporate services for
response time) based on international companies with
the shortest route offices in Russia and Europe
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Svetlana SMIRNOVA

19. «Baltic Highway» responds to Europe – Asian Market demand
Europe – Asia traffic volume growth rate
2011
Europe – Asia Traffic traffic distribution
+ 25% 2016
2012 2013 2014 2015
The terrestrial route through Russia
Europe-Asia leased bandwidth
are getting more demanded. By
will triple by the end of 2016 up
2016 its share in Euro-Asian traffic
to 1,5 Tbps
will double
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Svetlana SMIRNOVA

20. «Baltic Highway» in DREAM project
”Baltic Highway” – potential additional
route to Frankfurt in DREAM”
Moscow
Riga
Frankfurt
Completed Nx10G
High quality alternative Significant decrease of
capacity for fast growing
to existing terrestrial latency in the European
traffic volume between
routes part of Eurasian transit
Europe and Asia
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)
Svetlana SMIRNOVA

21. Thank You!
«Deutsche Telekom» (Germany) «Lattelecom» (Latvia) «MegaFon» (Russia)