PowerTel

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PowerTel Williams Communications

• Customer Analyst Presentation
• September 28, 2000

www.williamscommunications.com
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Agenda
John BumgarnerChairman, PowerTel Steven
ButlerChief Executive Officer,
PowerTel Welcoming Remarks Howard
Janzen President CEO, Williams
Communications PowerTel Alliance, Global
Trends, Overview of Williams
Communications Matt Bross Senior Vice President
CTO, Williams Communications Technology
Trends
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• PowerTel Alliance
• Global Trends
• Williams Communications Overview

Howard JanzenPresident CEO, Williams
Communications
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Our Mission

• To provide global seamless connectivity between
  key markets for our U.S. and global alliance
  carrier customers.

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Expanding Globally -Key Investments Alliances
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PowerTels Australian Network
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Southern Cross Cable Network -Providing Local
Global Reach

• WCG purchased bandwidth on the Southern Cross
  Cable.
• Provides PowerTel customers with connectivity
  between Australia the U.S. where over 85 of
  Internet sites originate.
• Provides door-to-door connectivity with high
  value enterprise solutions.

RFS Date 12-00Initial Capacity 120 Gbps
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Williams U.S. Network
PowerTels Success Drives Traffic On Our U.S.
Network
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Our Commitment to PowerTel

• Cost-effective access to robust U.S network
  platform
• U.S. originated/transit traffic for termination
  on to PowerTels network
• Management support
• Access to technology

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Strategic Investors in PowerTel
Ownership Williams 45, Downtown Utilities 30,
Public 25

• DTU Rights of Way
• Duct networks
• Access to 70 of Australian population
• Allows rapid cost effective network deployment

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Owning Infrastructure Advantage
Source BNP estimates
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Global Trends in Telecommunications
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Telecom Industry eConstructs
We foresee an industry breakup, where both new
and established service providers will specialize
in one of three horizontal business functions --
retailing, innovation, or network
operations. Forrester Research
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Connectivity Explosion - The Value of Metcalfs
Law
Metcalfes Law The value of a network increases
as the square of the number of users
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Barriers to Competition Are Easing in Most
Countries
Source Telegeography, WTO
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Local and Global Trends

• International trends mirror what weve
  seen in the U.S.
• Tremendous growth of data/IP Traffic
• Network builds
• Greater liberalization

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International Traffic is Growing
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Global Data Traffic FlowsTraffic is US-centric
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Insatiable Demand for Bandwidth
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Explosive Growth in Bandwidth Demand

• Voice traffic in Australia is growing by a factor
  of two every five years.
• Data traffic is growing by a factor of three
  every five years.
• International data traffic exceeded voice traffic
  in 1998 with domestic data traffic expected to
  follow the same path in 2002.

99.8 Tbit/s
21.7 Tbit/s
1.2 Tbit/s
Global Forecast for Bandwidth
Source Cisco Systems, 1999
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Key Drivers of Growth

• Demand is growing
• Deregulation has introduced competition
• Advancement of sector technology (eg. internet
  services)

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Network Economics

Demand
Revenue
Financial
Operational
Pricing
Costs
Time
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Digital Economy - Supply Demand
Bell Co. Costs, Revenues, and Profits 1960-1995
0.01 0.001 0.0001 0.00001 0.000001 0.0000001
160,000,000 135,000,000 110,000,000 85,000,000
60,000,000 35,000,000 10,000,000 -15,000,000
Cents per bit
1960
1970
1980
1990
2000
Cost per bit
Industry Profits (MM)
Industry Revenue (MM)
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Digital Economy - Supply Demand
INTEL 1979-1998
1 0.1 0.01 0.001 0.0001 0.00001
30,000 25,000 20,000 15,000 10,000 5,000 0
-5,000
Cents per transistor
1979 1981 1983 1985 1987 1989 1991 1993
1995 1997
Cost per transistor
Revenue (MM)
Profits (MM)
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Williams Communications -Overview
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Our Vision
To become the most technologically advantaged
and efficient US-based provider of high-capacity
network services.
Local
Global
Broadband Media
Solutions
Tech Farm
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Engineered for Success
Solutions
Network
BroadbandMedia
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Expanding Local to Global
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Time-to-Market -Network Build Ahead of Schedule
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Customer Focus - Succeeding With Our Carrier
Enablement Strategy
A carrier is any company that uses bandwidth as a
corecomponent of their business
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Recent Successes
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Developed an Award Winning Network
2000
Interactive Magazine
Most Innovative Backbone Network Provider
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Supporting the End UsersWho Own the Customers
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Solutions - Unlocking the Value Chain Components
Installation and Maintenance (IM)
Professional Services (PS)
Distribution (D)
Strategic Opportunities Vary by Business Lines
and Customer Segments
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Broadband Media -Broadband Media Services Grow
to 20B by 2005...
Serving Distribution
Storage, Hosting Management
5.9B
Content Collection Gathering
10.2B
4.1B

• Hosting
• Cataloging
• Navigation
• DAM/DRM

• Encoding
• Streaming
• Backhaul

• Assembly
• Forward edgedistribution

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Broadband Media -MediaXtranetTM

• Business-to
• Business
• Connects media communities of interest
• Broadband
• Exchange, store, access, move file-based media

MediaXtranetTM
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Expanding Product Offerings - Broadband Media
Williams Is Uniquely Positioned to Succeed in the
Broadband Media Services Market
Customers
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Transitioned from a Construction Company to a
World Class Service Company
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(No Transcript)
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Forward-Looking Information