1. © 2007 T Soja & Associates, Inc. 1 www.tsoja.com 5 th Annual Caribbean Internet Forum 5 - 7 November 2007 St. Lucia Caribbean Infrastructure Investment in the Fiberoptic Submarine Cable Sector Thomas A. Soja, President T Soja & Associates, Inc. Boston, MA USA www.tsoja.com

2. © 2007 T Soja & Associates, Inc. 2 www.tsoja.com Agenda The “Old” Network vs. the “New” Network Bandwidth Demand Growth Drivers Market Connectivity & Systems Supply –Activities in the BRICs, OECDs and ACPs Caribbean Projects –Recent investments and announcements

3. © 2007 T Soja & Associates, Inc. 3 www.tsoja.com Older Cable Infrastructure Unable to Support Broadband-Driven Future Circa 2002 Courtesy: AT&T

4. © 2007 T Soja & Associates, Inc. 4 www.tsoja.com Growth Drivers Competition Technology –Fixed line –Broadband DSL, HFC, Fiber –Wireless Free Space Optics, WiFi, WiMAX –Mobile Voice, increasingly broadband data capable

5. © 2007 T Soja & Associates, Inc. 5 www.tsoja.com Caribbean Teledensities Overall Average Adjusted Average Source: www.ipoaa.com/caribbean and CIA World Fact Book

6. © 2007 T Soja & Associates, Inc. 6 www.tsoja.com Caribbean Mobile Subscriber Growth Informa: Mobile and Wireless Opportunities in the Caribbean – 3rd edition

7. © 2007 T Soja & Associates, Inc. 7 www.tsoja.com Households, Businesses, Mobile Teledensity in the Caribbean ~2 million Internet Households ~400,000 businesses ~5 million Internet HH ( millions)

8. © 2007 T Soja & Associates, Inc. 8 www.tsoja.com The Promise of Wireless / Mobile Broadband

9. © 2007 T Soja & Associates, Inc. 9 www.tsoja.com Mobile Subscribers, Penetration and Mobile Broadband in the Caribbean ( millions)

10. © 2007 T Soja & Associates, Inc. 10 www.tsoja.com Implication for Upstream Capacity

11. © 2007 T Soja & Associates, Inc. 11 www.tsoja.com Caribbean Competitiveness Global positioning BRICs vs. OECD vs. ACPs ICs –Multiple high-capacity cables in queue Africa –Multiple initiatives under development Pacific Islands –Long-thin routes being addressed Caribbean –Recent developments timed just right

12. © 2007 T Soja & Associates, Inc. 12 www.tsoja.com Recent Investment Cable Networks –GCN2006 –Antilles Crossing2006 –Fibralink2006 –MCN/SCF2007 –Trinidad-Curacao2007 Approximate CapEx: US$100-150 million

13. © 2007 T Soja & Associates, Inc. 13 www.tsoja.com GCN-1 (RFS Jan-2006)

14. © 2007 T Soja & Associates, Inc. 14 www.tsoja.com Antilles Crossing Phase 1 (RFS Mar-2006)

15. © 2007 T Soja & Associates, Inc. 15 www.tsoja.com FibraLink (RFS Mar 2006)

16. © 2007 T Soja & Associates, Inc. 16 www.tsoja.com MCN (RFS Feb 2007)

17. © 2007 T Soja & Associates, Inc. 17 www.tsoja.com SCF (RFS June 2007)

18. © 2007 T Soja & Associates, Inc. 18 www.tsoja.com Prospective Investment Cable Networks –CFX-12008 –SAm-1 ext.2008 –Transbit (Venezuela-Cuba) 2009 Approximate CapEx: US$100-150 million

19. © 2007 T Soja & Associates, Inc. 19 www.tsoja.com CFX-1 and Trinidad Extension CFX-1 Announced May 2007 RFS Q2 2008 2,400 rt-km Curacao-Trinidad Announced 2006 RFS Q4 2007 1,000 rt-km

20. © 2007 T Soja & Associates, Inc. 20 www.tsoja.com Transbit Cable (Venezuela-Cuba) Announced Sept 2007 RFS 2009 1,552 rt-km 160 Gbps capacity

21. © 2007 T Soja & Associates, Inc. 21 www.tsoja.com SAm-1 Extension (Puerto Rico-Colombia) Announced 2007 RFS 2010 (est.) 1,400 rt-km Permitting stage

22. © 2007 T Soja & Associates, Inc. 22 www.tsoja.com Antilles Crossing Phase 2

23. © 2007 T Soja & Associates, Inc. 23 www.tsoja.com Multiple Ring Resilient Infrastructure Other announced systems

24. © 2007 T Soja & Associates, Inc. 24 www.tsoja.com Conclusions Real progress over past 5 years Timing took advantage of lull in systems supply More systems about to be built Local access shows viable path to dramatic improvement Scale needed – apps, content & customers Still more to come

25. © 2007 T Soja & Associates, Inc. 25 www.tsoja.com T Soja & Associates, Inc. tsoja@tsoja.com +1 617 787-0100 (tel) +1 617 283-7362 (mob) 2 November 2006 Thank you ! 5 th Annual Caribbean Internet Forum 5 - 7 November 2007 St. Lucia