Caribbean Roaming Market: Potential Revenue: 2005 – 2010 Jose F. Otero Signals Telecom Consulting CANTO 21 st Annual Conference Saint Kitts – June 22, 2005

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 About Signals  Founded in August 2004  Headquarters in Miami  CANTO Associate Member  Regional Offices –Buenos Aires, Argentina (December 2004)  More than 25 associate consultants  Partnerships with consultancies in six countries including –Brazil, Colombia, Mexico, UK and USA  Services –Market Intelligence –Competitive Analysis –Business Strategy

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 Signals in the Press

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 Upcoming Events  ITU Americas 2005 – Bahia, Brazil –Convergence & Triple Play  GSM Association Plenary Meeting – Lima, Peru –Mobile Data Services  CDMA Americas – Miami, Florida –Caribbean CDMA Roaming Market –UMTS/WCDMA Potential in Latin America & Caribbean  Caribbean Prepaid Markets – Aruba –Prepaid & Churn Prevention Workshop  Broadband Latin America – Rio de Janeiro, Brazil –WiMAX Workshop –PLC Market in Latin America & the Caribbean

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 Agenda  The Caribbean Context  Liberalization Present  The Opportunity –Bahamas –Barbados  Conclusions

CANTO 21 st Annual Meeting | Saint Kitts, June 2005  The Caribbean is not Western Europe, Japan, Korea or the US –Total Population does not equal potential addressable market  Haiti & Cuba –Lower GDP per Capita in many islands –Disparity on Income Distribution Levels  Infrastructure is on different evolution levels on each market –Needs are different for each market  Haiti, Guyana  Voice  Aruba, Puerto Rico  VAS  Dominican Republic, Jamaica  Reaching low-end Users  The future is wireless –Success depends on business plan not technology –Vertical integration is the region’s major trend Caribbean Context

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 Liberalization Present  Asymmetric development throughout the region –Delayed entrance of competition in the English speaking Caribbean –Young regulatory entities: education is needed!  Liberalization is just beginning… –Guyana, Trinidad & Tobago, Suriname, Bahamas, etc.  Liberalized Markets –Regulation impacting Opex/Capex  Number portability, E911, etc.  Caribbean Telecommunications Fast- track!

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 OECS Commercial Mobile Operations 1Q05

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 Liberalization : Positive Developments  Rapid increase of the mobile telephony subscriber base with most markets surpassing 70% penetration levels;  Benefits to consumers –Improvement in coverage –Improvement in QoS –Introduction of new services –Introduction of new technologies –Diversity of subscription plans  Telecom operators’ new paradigm –HOW TO MAKE MONEY  REVISITING ROAMING

CANTO 21 st Annual Meeting | Saint Kitts, June 2005  Main target for deployment of roaming- specific network for roaming should be incumbent mobile operators: –Most challenged by the arrival of competition at the hands of pan- Caribbean operators –Lack of large quantities of GSM 850 MHz- enabled handsets limits the ability of these networks of capturing roaming revenues  New entrants to mobile arena –Could use roaming as a additional “captive” revenue to speed-up the operator’s ROI –Could leverage networks to provide WLL services –ILECs, ISPs, CATVs The Opportunity

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 Population: (July 2004) Area: Km 2 Political Status:Commonwealth Nation Language:English Telecommunications market still is a monopoly in most services. Privatization and liberalization efforts have failed. Mobile incumbent Batelco launched GSM 1900 MHz in February 2004, but coverage needs to improve to reach the same level of service of the old TDMA network Digicel & Cingular Wireless interested in entering the market Bahamas

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 Bahamas

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 Bahamas

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 Population: (July 2004) Area:431 Km 2 Political Status:Commonwealth Nation Language:English Barbados has one of the most competitive mobile markets in the Eastern Caribbean with three players offering commercial service: Cable & Wireless (GSM 1900 MHz), Digicel (GSM 900/1800 MHz), and Cingular Wireless (GSM 900/1900 MHz). 4 th mobile licensee, Sunbeach Communications, wont be able to launch mobile services due to financial troubles. Barbados

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 Barbados

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 Barbados Potential Roaming

CANTO 21 st Annual Meeting | Saint Kitts, June 2005 Caribbean mobile operators interested in increasing their revenues will start considering focalized network deployments that will allow them to provide roaming services to visitors subscribed to CDMA2000 and WCDMA/UMTS mobile services. Key potential Caribbean CDMA roaming markets include Aruba, Bahamas, Cayman Islands and the British Virgin Islands. While intensive data usage is not likely for vacationers, image and location based services are well positioned to stimulate future growth. Due to the expected growth in CDMA market share of US mobile subscribers through 2010, the potential CDMA roaming revenues will grow from 45,2% of all US roaming revenues in the region in 2005 to 51,3% in As of 1Q05, Western Europe had less than 10 million UMTS/WCDMA subscribers. Nevertheless, lower terminal costs and increased competition will accelerate uptake of this technology during the next months. Conclusions

Jose F. Otero President Signals Telecom Consulting Tel: GRACIAS / THANK YOU BEDANKT / MERCI / DANKI