BBUS Outline

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D ISP Overviews Julian Herbertwww.point-topic.com
28 January 2005
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ISP Overviews

• Background
• The six ISPS
• Summary
• Highlights
• Propositions

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ISP Overviews

• Background
• The six ISPS
• Summary
• Highlights
• Propositions

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Background

• Profiles of six ISPs
• All from outside UK
• Pioneers in marketing particular value-added
  applications

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ISP Overviews

• Background
• The six ISPS
• Summary
• Highlights
• Propositions

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The six ISPsOverview
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Bell Canada SimpaticoSummary

• Security for residential business customers
• Uses white label security services from Zero
  Knowledge Systems (ZKS).
• Customer opts to receive security report about
  threats which have been intercepted. Report
  marketing and communications opportunity
• Anti-virus, Anti-spyware, Firewall package free
  for 6 months and C10.90 a month thereafter
  equivalent to 19 of monthly ARPU
• Improves customer retention ZKS claim customers
  with security option are 30 less likely to churn

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Bell Canada SimpaticoHighlights

• Service deliberately simplified compared to
  shrink-wrapped alternatives
• Marketing and communications opportunities to
  subscribers via a useful service
• Increase ARPU across a wide range of consumers
  (around C11 or 19 of monthly ARPU)
• Service can be licensed on up to 3 PCs per
  household

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Bell Canada SimpaticoPropositions

• Have you had a computer virus infection?
• Do you pay for Anti-virus/firewall/anti-spyware
  etc at the moment?
• Would you pay 4.60 a month for your broadband
  security?

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Catch Communications (Norway)Summary

• Business-focused ISP makes VPNs cheaper, simpler
• Ethernet-based network provides MPLS based IP VPN
  services comparable in quality to frame relay
• Success in attracting price sensitive public
  sector customers
• Average monthly revenue per site of about 500

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Catch Communications (Norway)Highlights

• IP core network and DSL focus
• Winning frame relay and VPN customers with
  easy-to-install solutions
• Recognise that quality has to be better, price
  lower, to overcome inertia

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Catch Communications (Norway)Propositions

• Join your multi-site business for 550/site/month
  (approx. 290)
• You can have an SLA thats better than for frame
  relay (although not quite as good as for SDH
  leased line), and at less cost

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FastWeb (Italy)Summary

• Strong video and TV element in a triple-play
  bundle
• Security services for residential and business
  customers
• Full triple play package (broadcast and
  on-demand video, PVR services, telephony, HSI
• Video telephony option
• Competitively priced bundles (25, 75,
  95/month)
• VoD and PVR contribute 11 of total ARPU
• Video penetrates 41 of customer base

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FastWeb (Italy)Highlights

• Pure IP network, mainly owned by FastWeb, using
  DSL and fibre
• Good value plug and play service bundle deployed
  rapidly
• Initial focus on just 6 cities
• Video and TV will increasingly drive revenue
• Not required to develop emergency call service,
  so VoIP market stimulated

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FastWeb (Italy)Propositions

• Structured service bundles for 25, 75, 95
  monthly
• Video telephony camera for 5/month, free calls
  to other FastWeb subscribers, vs 1 Euro/min to
  ISDN videoconferencing line (ie at an office)
• Video on demand library of 1000 titles, at 4
  for a back catalogue film, 6 for a latest
  release

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Free (France)Summary

• Voice over IP as part of residential triple play
  bundle
• Triple play bundles comprises HIS, TV and Phone
  for flat monthly rate 29.99
• Proprietary nationwide network (12,000km optical
  network, 220 ADMs, 1500 DSLAMs, equipment in 602
  France Telecom exchanges
• ADSL 2 launched July 2004
• 1 million customers at end 2004

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Free (France)Highlights

• VoIP switches and gateways deployed as part of
  extensive proprietary national network
• Highest penetration of primary voice line
  customers of any broadband network in France
• Free calls to any fixed line number in mainland
  France
• Customer base growing at 18 quarter on quarter
  in 2004

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Free (France)Propositions

• Do you currently use voice over IP services,
  either through your broadband provider or through
  software based solution such as Skype?
• Would VoIP be compelling as a primary line
  replacement or just for secondary line?
• How complicated does setting up a VoIP service
  appear to be?

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SingTel (Singapore)Summary

• Turbo button to boost download speed
• BOD service launched July 2003
• Connection speed increased on demand at a price
  based on data consumption overage S0.3/Mb
• Users log-in to high bandwidth service through a
  different domain
• Increases bandwidth from 512kb to 1.5Mb

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SingTel (Singapore)Highlights

• Speed top up available to some broadband users
• Other operators have trialled this (NTL -
  'Turbo')
• SingTel sells BOD on top of a relatively complex
  range of broadband and 'midband' products

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SingTel (Singapore)Propositions

• How fast do you think broadband is? 500k? 1 Mbps?
  (use examples of song download times).
• Roughly how much data do you think you download
  in a month? (1 Megabyte, 10 Megabytes, 100
  Megabytes, 1000 Megabytes (1 Gigabyte), 10
  Gigabytes, 100 Gigabytes?)
• Would you pay less if you could only use fast
  broadband during evenings and at nights, or at
  weekends?

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Sprint (USA)Summary

• Bundled DSL, telephone, mobile retains customers
• Packages tie together fixed (local/long distance)
  offering with Sprint PCS mobile offering
• Offers incentive to Sprint DSL customers to
  become Sprint PCS customers
• Subscribers to all services benefit from c.
  15/month off DSL csot and free calls between
  home and PCS
• Market limited to intersection comprising local
  exchange customers on DSL enabled exchanges in
  areas of Sprint PCS coverage

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Sprint (USA)Highlights

• Nearly 70 of local exchange customers puchase
  additional mobile or DSL packages
• Data is the only fixed line of business which
  increased revenue in Q3 2004, thanks largely to
  increase in DSL take up
• Range of bundled packages, based around
  subscribing to a Sprint local exchange service in
  one of 18 states
• Revenue growth from installed customer base
  heavily offsets overall revenue decline being
  experienced by Sprint in the local exchange
  market

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Sprint (USA)Propositions

• Do you think bundling services together would
  save you money in the long term - or is it better
  to keep elements separate and to shop around?
• How much of an advantage is it to have all three
  services on a single bill?
• If you buy a bundle of services are you concerned
  that one or more of them might not be the best
  for your particular needs - such as including the
  mobile company which gives the best local fixed
  service?

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Julian Herbert 020 7551 9260 www.point-topic.com j
ulian.herbert_at_point-topic.com