Ben Bawtree-Jobson, CEO SiFi Networks

Who is SiFi Networks? What is a sustainable FTTx network? How to achieve a sustainable FTTx network Smart City Initiatives by Fabricio Velez U.S Broadband Market Q&A

100% privately financed fiber infrastructure passed every premise within the City Financing structure to mitigate upfront demand risk FOCUS™ System Sustainable underlying business plan for each Municipality SiFi Networks takes all of the design and construction risk OPEX certainty Minimum revenue commitments Reputable Service Providers that can offer multiple services SiFi Networks Provides a Turnkey Solution…. = Long term (30 year) investable, reliable and flexible FiberCity™

What is a Sustainable Fiber Optic Network? All homes and businesses connected closing the digital divide Truly future proofed Smart City infrastructure Net Cash Flow Positive Carrier class operation Best products and service delivery

The Challenges The Traditional Finance View Capex Intensive High Risk/ Minimal Rewards Financially strong existing competition Single Counter Party Risk Short investment time horizon

Municipal Solution Municipalities should be focusing on sustainability far more than FTTH Private partners with long term motivations A Smart City network to serve the community for generations In order to achieve a long term sustainable network we must strive to have a network that provides the most up to date and relevant services to both consumers and government

Definition: ……………… Partner Goals Municipality Service Providers Residential Subscribers SiFi Networks Co Investors Affordable retail price point Affordable Wholesale Rate Sufficient revenue generated Target returns achieved Sustainable long term investment

How do we get there? The 3 layer model: Service provider Layer Independent Operational Layer Infrastructure/FTTx/SmartCity Layer

Future proof Flexible Resilient Scalable Smart City Infrastructure/FTTx/SmartCity Layer

R 18 G 65 B 145 R 0 G 201 B 255 R 77 G 87 B 102 R 0 G 17 B 53 R 190 G 200 B 210 Core and background colors: R 75 G 221 B 51 R 255 G 251 B 0 R 255 G 49 B 84 © Nokia 2016 A Sustainable Smart City Fabricio Velez Business Development Director, Public Sector Mountain Connect Broadband Development Conference June 2016 Confidential

© Nokia 2016 The necessity of a smart city Confidential Of the 355 billion gallons of water used by Americans daily are wasted due to leakages When the population of a city doubles, crime rates raise 15% on average Fatalities each year worldwide by not following doctor’s prescriptions – addressable by assisted living / patient monitoring Local authorities wish to reuse existing infrastructure for smart city use cases* * “Opening the boundaries of smart cities everywhere”, Nokia roundtable report, MWC16 20% 15%1 million

© Nokia 2016 A sustainable smart city Nokia Internal Use The idea of Smart Cities is a a complicated one and means different things to different people, but all definitions have a core element ̶ using technology and the data it collects to help address complex challenges Frost & Sullivan, May 2015 A smart sustainable city is an innovative city that uses information and communication technologies (ICTs) and other means to improve quality of life, efficiency of urban operation and services, and competitiveness, while ensuring that it meets the needs of present and future generations with respect to economic, social, environmental as well as cultural aspects of Smart Cities is a a complicated one and means different things to different people, but all definitions have a core element ̶ using technology and the data it collects to help address complex challenges International Telecommunication Union (ITU), October 2015 Smart Cities Council Readiness Guide

© Nokia 2016 Smart city characteristics Smart environment Smart people Smart living Smart governance Smart mobility Smart economy AutomotiveSecurityPublic safety HealthSmart city ConnectivityIndustrial internet Confidential A smart city brings together technology, government and society

© Nokia 2016 The role of ICT in smart cities City administration EducationHeatlh care Confidential Public SafetyUtilitiesTransportation

© Nokia 2016 Application Enablement Network Virtualization DC Inter- connect IP/MPLS Edge & Core IP Backhaul IoT Optimized Core IP comms Mobile & Fixed Access xPON/FTTx Small Cells/WLAN/LPWAN Context-aware Service Management Services IoT & Cyber Security Device & Connectivity Management Data Delivery Data Collection & Analytics Nokia’s Smart City solution is designed to provide the “building blocks” for enabling new smart city applications to be rapidly created, deployed, extended and managed. Nokia view Confidential

Independent Operational Layer Carrier class? A network offering reliability and high performance A network that is highly scalable A network that enables Service Providers to successfully to deploy and support multiple applications 24/7/365 SLAs Field Services Independent operations from service provision Real competition Prevention of monopolies without need for regulation

Should we talk of ISPs or of Service Providers… Multi tenant/ Open Access Risk in default Risk of professional execution Risk of closed network Reward of competition Fostering of a platform for future applications Service provider Layer

Reykjavik, Iceland Open Access Network SiFi Networks’ Founder instrumental in it’s creation 70,000 homes passed Over 40% take rate 6 Service Providers Including tier 1’s such as Vodafone Cash flow positive and generates in excess of €5m per annum

Conclusion: State of U.S Broadband The USA is ranked #16 in the world for broadband connectivity. Source: Broadband Now The USA leaves over 38 million Americans underserved Average connection speed of only 12.6Mb/s Per capita GDP that is 1.1 percent higher than communities with little to no availability of gigabit services Home values increase by 3.1% in areas with fiber

Conclusion The Traditional Finance View Capex Intensive Internet Vital Utility Long term investment All Layers need to be future proofed and flexible enough to adapt to changing market dynamics and services. Infrastructure – resilient & scalable, dedicated fiber capability in the future Operations – Independent, professional, 24/7/365 Service Provision – multiple services enabled, unrestricted capabilities, multiple providers where possible.