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Telco Industry Trends

Simbad Ceballos Avila

Medellín, May 4th 2013

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• Convergence Fixed + Mobile A customer must

• The future: Mobile 4G

• A Global/Regional Business

Intensive Capex/Opex Approach

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Social Networking:

•Unites consumer

w/interest groups,

relevant content.

•Ability to uniquely

target consumers.

•Consumers

increasingly

expect

everything to

be connected

seamlessly

Consumer is Now the “Center of the Universe” •Rise of

Gen-X/Y

“Broadband

Generation”

•Broadband is their

“Media of Choice”

Choice in the Hands of the Consumer:

• What they want

• When they want it

• On the device of their choice

N-play a must.

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• Convergence Fixed + Mobile A customer must

• The future: Mobile 4G

• A Global/Regional Business

Intensive Capex/Opex Approach

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More than

By

Wireless Will be

of the global

v i d e o

Wi l l be . . . .

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0

20.000

40.000

60.000

80.000

100.000

120.000

2011 2012 2013 2014 2015 2016

Peta

byte

s p

er

Mo

nth

Mobile Data (78% CAGR)

Fixed/Wired (20% CAGR)

Fixed/Wi-fi (34% CAGR) 39%

51%

10%

29% CAGR 2011–2016

Source: Cisco VNI Global Forecast, 2011–2016

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0

2

4

6

8

10

12

2012 2013 2014 2015 2016 2017

Exab

yte

s p

er

Mo

nth

7.4 EB

0.9 EB

11.2 EB

4.7 EB

2.8 EB

1.6 EB

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2012–2017

66% CAGR 2012–2017

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Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2012–2017

More Mobile Connections

More Mobile Users

Faster Mobile Speeds

More Mobile Video

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0

2

4

6

8

10

2012 2013 2014 2015 2016 2017

Ex

ab

yte

s p

er

Mo

nth

2-2.5G

3-3.5G

4G

14%

45%

51%

10%

76%

4%

Source: Cisco Visual Networking Index (VNI) Global Mobile Data Traffic Forecast, 2012–2017

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• Convergence Fixed + Mobile A customer must

• The future: Mobile 4G

• A Global/Regional Business

Intensive Capex/Opex Approach

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1. Global / Regional Players

2. Capital intense business

3. Economies of scale savings matters

4. N-Play common infrastructure leverage

5. N-Play ARPU improvement. Churn reduction

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13

Industry Consolidation/Privatization to continue: Claro, Movistar …..

New players to come: VSPs: Virgin….., SPs: Azteca, Entel, Oi

4G will transform Mobile Services . TDT will accelerate TV x Suscrition

Wifi Offload and Wifi Operators to be launched

Tablets and Smartphones penetration will increase rapidly

SP Cloud, investments in place. Expected efforts for monetization : SMB + Gov

Telefonia

Movil

Internet

Fija

Internet

Movil

TV

Subscrip.

Claro 61.5% 29.6% 21.3% 46.5%

Movistar 24.7% 18.1% 53.8% 6.2%

Une 0.2% 27.4% 4.3% 27.2%

ColombiaMovil 13.1% 14.1% 19.2%

ETB 2.7% 1.4%

Uff 0.6%

DirectTV 11.4%

GlobalTV 4.8%

SuperCable 0.5%

Op.Municipales 3.3%

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• National Internet

Coverage

• Mobile Banking

• eHealth

• Tranportation

• Mobile TV & Video

• Mobile Education

210

207

135

66

50

Penetración

Banca Penetración

Merchants

50

50

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Thank you.