Dr. Girish Pathak President, ITE Services Inc. Transformation of Caribbean Service Providers CANTO conference, June

… unleashing the business potential of digital convergence ITE services agenda macro technology trends, case for circa 2001 the transformation – before, after and the process … emerging business issues/opportunities, transformation at a Caribbean service provider … 2006 checklist for service providers ITE Services … value proposition q/a

… unleashing the business potential of digital convergence ITE services macro technology trends, I. user interface … global adoption of internet browsers and search- engines II. applications … success of commercially-off-the-shelf software applications and (outsourced) services III. broadband access … both wire-less and wire-line IV. network connectivity … convergence to IP, capable of delivering voice, data, and video applications V. underpinning of the digital era, silicon technology … unabated pace of progress, as per Moore’s law

… unleashing the business potential of digital convergence ITE services case for transformation at TELUS, 2001 TELUS, $5B Canadian monopoly in west, emerges as a fledgling national player from many acquisitions, and a new management team strong presence in BC, Alberta, and some parts of Quebec & Ontario telecom market is on a wild ride … dot-com bust of 2001 … pending contract negotiations between management and union network heterogeneity is reflected in rising costs (CapEX and OpEx) specially, capital intensity (CpEx/Rev) has to come down from 20s TELUS lacks network-enabled competitive advantage or differentiated value proposition in the national business marketplace Bell Canada is viewed as the market and technology leader go-to-market organizations, with revenue of $7B, find legacy network costs, coverage, and reliability an easy scapegoat

… unleashing the business potential of digital convergence ITE services the xFormation – before, after, process product mix of 42% voice, 27% mobile, and 16% LD $2+B EBIDTA with 2+M mobile & 200K HSIA subs (bare 30% of the total broadband subs) $5+B full service provider The stock price is around $15.00 product mix of 36% mobile, 35% voice, and 20% data $3-B EBIDTA with 4M mobile & 700K HSIA subs (about 45% of the total broadband subs) $6+B full service provider enterprise value rose by 40% during , stock at $20.00 services, people, technology, systems customer set  profitability

… unleashing the business potential of digital convergence ITE services emerging business issues/opportunities revenue … major parts under attack Wire-line revenue under attack … wireless substitution & VoIP Wireless, with lower barriers of entry, under intense competition competition … on all, traditional and non-traditional, fronts [regional] wireless providers and cable providers non-facility based VoIP providers, ISPs, etc. technology … legacy infrastructure, the biggest drag On the other hand though, IP-based infrastructures promise step difference in capabilities, optimization of CapEx & OpEx; and will offer requisite reliability/QoS, if engineered well customers … among all issues there is a silver lining Consumers … interested in trusted partner, in face of tech complexity at home Businesses … interested in outsourcing non-core competencies market dynamics … consolidation of equipment as well as of service providers

… unleashing the business potential of digital convergence ITE services xFormation at a Caribbean SP to protect and grow profitable revenue base in wire-line and wire-less business to bring customer-relevancy & efficiency in all operations using state of the art technologies, process discipline & automation to diversify product-mix from exposure to substitution, bypass or leap-frog technologies to develop new long-term (sustainable) growth opportunities

… unleashing the business potential of digital convergence ITE services checklist for service providers 1. Are we relevant to (and engaged with) our customers, both businesses & consumers? More specifically, do our key customers invite us during their strategic planning, whether they are private or public entity? 2. Is our network and operations cost-efficient? Are we in leading quartile? 3. Are our services enabling strategic differentiation in the capabilities of businesses or communities that we serve? Do we have leading edge services and networks?

… unleashing the business potential of digital convergence ITE services ITE Services … value proposition  for telecom/cable business or ICT executives help successfully execute transformation from legacy to leading-edge products, technology/operations, and to develop strategic clients … using proven methodology provide distinctive assessment of ICT technologies … using proprietary tools help deliver breakthrough improvements in the effectiveness of IT organizations utilizing proprietary metrics  for technology investors superior financial analysis on IT & telecom investments

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