1. Walking on Hot Rocks
Dick Simpson, CEO, REACH 1

2. Overview of a Disrupted Industry
Large Cash Flows
Infrastructure Assets

3. International Connectivity
Trans-Pacific Lit Submarine Cable Capacity, excluding US-Australia cables

4. The Perfect Storm

5. Bright Lights

6. Wireless Opportunities
China
1.2 billion people
15% wireless penetration
60 million customers per year
Vietnam
85 million people
2% wireless penetration
Indonesia
200 million people
3-4% wireless penetration
India
1 billion people
1% wireless penetration

7. Broadband Broadband and mobile growth in the United States (millions)
Source: ITU World Telecommunications Indicators Database

8. Broadband Penetration
21%
SOUTH
KOREA
10%
11.5%
CANADA
JAPAN
15%
HONG KONG

9. Where is the Value Moving to?

10. Focus on the Customer Greatest asset = customer relationship
Therefore, get closer to
customers

11. Re-think Cost Base Cost structure ROI Core business
International network

12. Focus on Core Business Do you need to own the asset or have the
use of it?
Do you have the scale
to go it alone?

13. Quote
“Some companies have figured out that the network doesn’t matter anymore. For the last 100 years, telcos have believed that their business was owning and operating a complex mesh of wires and switches. Now,…they’re beginning to realize that their true job is helping people communicate. And their focus has to shift from managing infrastructure to making sure customers are satisfied. Companies still split along technology lines are missing the point.” (BusinessWeek, October, 2003)