Caribbean Development Plans:“Broadband the future of

Regional Communications”Michele English

President and COOColumbus Communications, Flow Jamaica

• Who Are We

• The International Context: Changing world

• The Regional Context: Lagging Behind

• Poised For Change: Enabling Broadband Use in the Region

• The Impact of Columbus’ Communications

Concepts to Discuss today

Columbus Communications Inc

Columbus International Inc. is a leading provider of broadband capacity solutions and broadband-enabled services tocommercial and retail customers in, or operating in, the Caribbean, Latin American and North American markets

Manages business under two operating segments: Columbus Networks (“Wholesale”) and Broadband Services (“Retail”)

Over 1,700 employees

Columbus Networks provides full suite of advance, point-to-point, clear channel wholesale broadband capacity and IP servicesover its owned and operated, state-of-the-art, subsea fiber optic cable network to clients located in 21 countries and territoriesthroughout the Caribbean, Latin America and North America

Broadband Services operating segment provides broadband-enabled services such as cable television, high speed Internet(“HSI”) access and IP telephony services under the unified brand name “Flow” to retail and commercial customers inTrinidad, Jamaica and Grenada

Columbus Networks Broadband Services

ColumbusTrinidad

ColumbusJamaica

ColumbusGrenada

Clear Channel Broadband CapacityIP Services

Other Network ServicesCable Television

High Speed InternetIP Telephony

Other Network Services

Columbus Networks is a carrier’s carrier providing advanced,high-speed bandwidth on its ARCOS Cable System to:

Telecommunicationscompanies

Internet ServiceProviders

Columbus Networks aims to identify and address telecommunicationsopportunities in Latin America and the Caribbean that have significant

upside potential in both growth, value and service offerings.

Cable TVOperators

Columbus Networks, Superior Solutions

Network of the Future

The most robust, operating platform in the Caribbean which can beuniquely leveraged to capitalize on numerous growth opportunities in the

region

Capacity Solutions

Broadband Services

Backhaul deploymentinitiatives

E-Commerce Park

Columbus Jamaica

Columbus Trinidad

Columbus Grenada

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Flow Jamaica – Network

• Broadband deployment could contribute $500B to GDP in the US and $400Bin Europe.

• Total ICT sector employment grew by over 8% annually between 1995 and2005 in developed countries, and represented 5.5% of total businessemployment.

• Internet business solutions have enable private companies in the US to save$155B – 2005

• Helped companies in France, Germany and the UK increase revenues $79billion.

• A survey of more than 2,000 US businesses - that Internet business solutionsresulted in a net gain of almost $600 billion by 2001 and would add .43percentage points to future productivity growth through 2011

Broadband, International Context

Internet Usage, International Context

Population Internet Users % Pop.

Internet

Growth

Broadband

Users Broadband

( 2008 Est. ) Latest Data Penetration 2000-2009 Penetration

Mexico 106,919,000 28,540,000 26.69% 645% 7,596,000 7.10%

Central America 41,608,899 5,837,000 14.03% 627% 770,700 1.85%

Andean 86,253,000 19,853,999 23.02% 374% 3,375,000 3.91%

The Caribbean 18,303,534 5,603,000 30.61% 832% 915,000 5.00%

TOTAL 253,084,433 59,833,999 23.64% 433% 12,656,700 5.00%

North America 340,831,831 252,908,000 74.20% 134% 163,231,660 49%

Data as of Dec 2009

Sources: Pyramid Research, Internetworldstats.com, ITU, Nielsen/Net Ratings, Convergencia Latina, DSL Forum

Internet Usage in the Pan Caribbean Region

Pan Caribbean Region

Broadband, Regional Context

Downloads per Residential User – GB Per MonthEvolution of Internet Applications

Downloads per residential user are expected to grow rapidly across theregion driving demand for capacity and IP services

Poised For the potential of Broadband

• Invested more than $700m in off and on Island infrastructure.Projected to reach $1 billion over the next 4-5 years

• Providing an information infrastructure for advancedbroadband enabled Services and unparalleled businesssolutions;

• Enabling innovation by continually exceeding the demand forBandwidth Intensive applications;

• Using cutting edge technology to transform the way the regionworks, learns and plays

Columbus, Bringing Broadband to the Region

First regional network to provide a true ring configuration 19 Countries Connecting over 200 million people

United StatesBahamasTurks & CaicosDominican RepublicanJamaicaPuerto RicoCuraçaoTrinidadVenezuelaColombiaEcuadorPanamaCosta RicaNicaraguaHondurasGuatemalaEl SalvadorBelizeMexico

ClockwiseClockwise

Unparalleled Connectivity

Quality of serviceOne of the best Service Level Agreements in theregion

– 100% network availability– Less than .03 % packet loss– 50ms average or less latency

Intelligent RoutingTraffic from the CN is directly routed to all major IPbackbones using an overlay network of Tier-1providers and regional peering

Flexible billing solutionsCN IP Transit Service is offered as full port, tiered orburstable connection, to meet the need of yourbandwidth demand and business model

Scalable connections Bandwidth available from E1 to Gigabit speeds

Built-in redundancyConnection to all major IP backbones through ourstate-of-the-art submarine broadband fiber opticnetwork using next generation routing technology

Network ManagementCN IP Transit provides one point of contact at CN’sNetwork Operations Center (“NOC”) providing highnetwork availability and performanceMonitored and maintained 24X7

Unparalleled Business Solutions

Flow – Triple Play Services

Watch. Talk. Click.

• Dramatic Increase in Capacity

• Greater Resiliency and Redundancy

• Dramatic reduction in cost to both business and residentialcustomers (by 100% in some cases)

• Critical Business Solutions

• Enabling Business Development and Innovation

Impact of Columbus

Circuit Speed Jamaica Bahamas Trinidad1.544 Mbps US$16,000 US$10,000 US$24,000

Pre - Columbus

Post - Columbus

Circuit Speed Jamaica Bahamas Trinidad1.544 Mbps US$5,000 US$4,200 US$11,000Savings US$11,000 US$5,800 US$13,000

Est. monthly comparative costs. IPLC to Miami before and after CFXSource: Columbus Research

Impact of Columbus - Regional

Capacity Pre-Flow MarketToday

FlowToday

%Decrease

E1(2Mbps)toMiami

$22,000 $9,000 $6,000 73%

DS‐3TOMiami $160,000 $60,000 $35,000 78%

IPperMbps $7,000 $500 $148 98%

Prices shown in US$ per month. Based on Jamaican prices.

Commercial

Impact of Columbus - Jamaica

Capacity Pre-Flow CompetitionToday

FlowToday

%Decrease

1.0Mbps $90 $22.03 N/A 76%

2.0Mbps $120 $24.49 N/A 80%

4.0Mbps N/A $27.83 N/A N/A

8.0Mbps* N/A $30.06 $27.33 N/A

15.0Mbps N/A N/A $35.70 N/A

DataPricesCaseStudy–FlowJamaicaMarketEntry

*Competitors 8Mbps offered in very limited areas. Prices in US$.

Impact of Columbus - Residential

Source: OECD Statistics

Flow’s Impact on Broadband

• Impact on macro business environment• Job Creation

Currently 500+ employees Building Jamaica’s workforce Transfer of technical skills and new technology Job creation throughout Jamaica

Attracting International Investors Unprecedented bandwidth now available to the island the data connectivity of Jamaica is now on par with any first-

world country When the region is threatened by hurricanes, the likelihood of

Jamaica being cut off from the rest of the world will besignificantly reduced, with the addition of this undersea fibreoptic connection.

National Impact - Jamaica

Number of CallCentres

Number ofSeats

Number ofAgents

20 4,555 9,000

Pre – Columbus (2006)

Post – Columbus (2010)

Number of CallCentres

Number ofSeats

Number ofAgents

36 9,419 24,824

Growth 80% 107% 176%

Source – JTI/Jampro & Zagada Market Inc.

Impact of Columbus – Call Centre Industry - Jamaica

• Impact on macro business environment• Reducing the digital divide/Creating an knowledge based society

– Building a Knowledge based society- provide true broadbandinfrastructure to all of Jamaica

• Commitment to social development:– Multimillion dollar “Building Leader Through Technology” programmes that:

• Focus on enhancing the learning environment of students through the freeprovisions of Flow’s internet and educational cable products to schoolsthroughout Jamaica

• Focus on building strategic partnerships with other private sector partners tobuild youth leadership

Flow’s Impact in Jamaica

Social Impact of Columbus’ Broadband

Thank You