Toward customer centric convergence Our experiences Jorge Iván Ramírez Verizon Dominicana Jun 2006

Agenda  Our approach: Customer Oriented Convergence  Toward convergence: Customer knowledge and market segmentation Product portfolio transformation Human resources Internetworking Channel readiness  Current and expected results

Our approach: Customer Oriented Convergence  One customer profile  Customer in control: self provision, self managed  100% network interoperability  Network based (not terminal based) applications, built under open standards  Centralized authentication across networks, services and applications  Broadband anywhere, anytime Full Convergence is a long term endeavor, that requires a complete business transformation and self indicted creative evolution

Customer oriented convergence The Model  Same experience, same apps and one sign on across multiple networks and devices  Applications shall be independent from devices and devices from networks An environment of provision of services managing a unique user profile Transport that provides the required QoS The best access network available for whatever the user needs to do here and now Business Environment Consumer Environment Each terminal, anywhere Each User Any Content

Applications and contents Same content should be available in any device

Toward customer centric convergence How we have embraced the path to customer satisfaction through convergence

Photos Voice Home Networking and Internet Music Security and child surveillance Games & Entertainment What are the customers needs At Home

What are the customers needs At Work Productivity Tools Collaboration 100% Uptime Network Unified Communicati ons Exterior Communicati on Security Cost Management

Toward convergence: Customer understanding & segmentation  Customer segmentation basis: Lifestyle Value Product use & product mix behavior  Customer relationship marketing; NOT product marketing  Entire company was restructured around customer segmentation Techies Basic Floaters New Corporate Medium Micro New WirelineWireless Internet & Networks Solutions Consumers Business

Toward convergence: Human resources readiness  Every employee is about to be trained in the basics of data transmission technologies  Advanced levels of certifications are currently on track for technicians and network professionals  Managers and directors are also being involved in training process  One technician will be able to install and repair every data or legacy solution  628 technicians have been trained or certified up-to- date

Toward convergence: Internetworking and broadband  Network readiness  From ATM to a state of the art IP backbone  MPLS to assure compatibility of FR, X.25, TDM with new broadband services (Layer 3)  Distribution and access network layers are also being expanded accordingly  NGN (Circuit Switch to IP Switch for voice services)  Product portfolio is powered with high-end broadband solutions  Wireless broadband (1XRTT) also covers most of our geography; HSPDA will be deployed in next years

Backbone evolution to IP Central Router MUX DSX DS1 Tirany Core Multiservice Central Router MUX DSX Router NGNNGNl IMS

Toward convergence: Channels Readiness  Every call center operator is currently able to treat any request of product and services  Differentiated SLA by customer segment  Specialization on acquisition, maintenance and development

Our Experience  Convergence: Is a long term endeavor Should be customer centric New solutions must: >Simplify communications across multiple networks, devices and services >Have enough potential market and proven to be profitable >Support company long term strategy Impact every member of your company

Results & expected  Slash time to market when developing products  Systems consolidations (future)  Customer on control: auto provisioning, auto managed  Dramatically reduce costs of systems integration, management and maintenance  Facts in Verizon Dominicana:  30% increase in customer satisfaction for installation services (transport & Internet)  25% increase in customer satisfaction for repair services (Transport & Internet)  Same EBITDA margin,despite inflation rate and prices reduction (10%) in the last 18 months