From Nothing to Everything in Just Ten Months An Australian LMDS Story Mike Callen General Manager Agility Networks Pty Ltd 1

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Cable & Wireless Optus –Established in 1992 –Australia’s second full service carrier –Owns and operates full range of technologies –Some 6,500 staff and 3 million customers –All market segments 5

The Opportunity The Australian Wireline Market 6 60% 40% 20% 0 Telstra Optus Other EBITDA AccessSwitching & Transport VASSales, Service, Billing Telstra:$5.51B91% Optus:$0.36B6% Others:$0.20B3% Total:A$6.07B100%

Conclusion Opportunity is huge 7 Established independent companies to focus on the new access technologies - LMDS and DSL

Agility Networks Pty Ltd –Wholly owned subsidiary –Licensed carrier –Owner of a spectrum licence –Wholesale provider 8

Our Challenge –No spectrum –No people or assets –Little capital –No parent commitments –12 months behind –Poor perception of LMDS 9 - A true underdog!

Our Goal To build a successful LMDS business –provision customers within 30 days of obtaining spectrum –but not later than 18 months from now! 10 - A very big ask!

The Strategy To reverse the usual practice and develop the business ahead of winning the spectrum 11

What Did We Need to Do? 12 - And everything else!

Clear Goal The Secrets of Our Success Simultaneous Execution Creative & Energetic Team Rigorous Technical Trials Pursuit of Spectrum Strong Governance 13 And run really fast!

–Director Level CWO Steering team –Fortnightly reviews –Strict adherence to budget and schedule Strong Governance 14 - but use a ‘stealth’ approach!

–Benchmark for all decisions –Broad and constant –Communicated widely –Reinforced with Staff Clear Goal 15 - it drove all behaviour!

–Business imperative –Several parallel paths –All plans had the same goal –Nimble attitude Simultaneous Execution 16 - all things at once!

–Small and focused –Separate from CWO –Specialists with expertise Creative and Energetic Team 17 - a “motley crew”!

–Leveraged CWO network –Early selection of vendor –Mitigated risk Rigorous Technical Trials 18 - Technical risk eliminated!

–Lobbied Government –Examined JV –Promoted wholesale model –Auction Relentless Pursuit of Spectrum 19 - the right spectrum at the right price!

20 We Made It!

What We Achieved And we beat our rival to launch!

"To be Australia's most successful provider of broadband services, by leveraging the speed, flexibility and reliability of fixed wireless technology." 22 Where to Now?

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