D ISP Overviews Julian Herbert 28 January 2005

2www.point-topic.com ISP Overviews Background The six ISPS –Summary –Highlights –Propositions

3www.point-topic.com Background The six ISPS –Summary –Highlights Propositions ISP Overviews

4www.point-topic.com Background Profiles of six ISPs All from outside UK Pioneers in marketing particular value-added applications

5www.point-topic.com Background The six ISPS –Summary –Highlights Propositions ISP Overviews

6www.point-topic.com The six ISPs Overview ISPCountryValue-added offering Bell CanadaCanadaSecurity services for residential and business customers Catch Communications NorwayBusiness-focused ISP that aims to make VPNs cheaper and simpler FastWebItalyStrong video and TV element in a triple-play bundle FreeFranceVoice-over-IP as part of residential triple-play bundles SingTelSingaporeTurbo button to boost download speeds SprintUSABundled DSL, telephone and mobile offering to retain customers and maintain revenue

7www.point-topic.com 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 C$10.90 a month thereafter; equivalent to 19% of monthly ARPU Improves customer retention: ZKS claim customers with security option are 30% less likely to churn Bell Canada – Simpatico Summary

8www.point-topic.com Bell Canada – Simpatico Highlights 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 C$11 or 19% of monthly ARPU) Service can be licensed on up to 3 PCs per household

9www.point-topic.com Bell Canada – Simpatico Propositions 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?

10www.point-topic.com 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

11www.point-topic.com 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

12www.point-topic.com Catch Communications (Norway) Propositions Join your multi-site business for $550/site/month (approx. £290) You can have an SLA that’s better than for frame relay (although not quite as good as for SDH leased line), and at less cost

13www.point-topic.com 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

14www.point-topic.com 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

15www.point-topic.com 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 titles, at €4 for a back catalogue film, €6 for a ‘latest release’

16www.point-topic.com 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 million customers at end 2004

17www.point-topic.com 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

18www.point-topic.com 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?

19www.point-topic.com 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 = S$0.3/Mb Users log-in to high bandwidth service through a different domain Increases bandwidth from 512kb to 1.5Mb

20www.point-topic.com 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

21www.point-topic.com 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?

22www.point-topic.com 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

23www.point-topic.com 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

24www.point-topic.com 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?

25www.point-topic.com Julian Herbert