2. Copyright © 2001, Fonet Global Inc. VoIP Business trends

3. 29/03/01 2 Fonet Global Inc.© Internet Telephony to the Rescue

4. 29/03/01 3 Fonet Global Inc.© The Business Opportunity “….. Leveraging VoIP with new Last Mile technologies and services.

5. 29/03/01 4 Fonet Global Inc.© Business Strategies for VoIP Begin with Dial-up equipment to get high volume quickly Add VoIP interconnects to reduce costs Build key strategic partnerships with 4-6 peering carriers Look for local partners in less developed telecom markets (often they offer calling card locally) Begin with wholesale traffic to get ROW Termination, add ASP termination, subscriber services.

6. 29/03/01 5 Fonet Global Inc.© International VoIP Business Trends Annual MOU international calling increasing Subscriber rates for international calling dropping, use of dial-arounds increasing Increase in use of wholesalers by major carriers for international traffic Increasing numbers of traditional switch-based wholesalers migrating to VoIP Switch-based resellers becoming less competitive, even going out of business, VoIP wholesalers growing rapidly

7. 29/03/01 6 Fonet Global Inc.© Explosion in Worldwide Internet Based Communications Explosion in Worldwide Internet Based Communications

8. 29/03/01 7 Fonet Global Inc.© The VoIP Drivers Level of Importance or Value Time Arbitrage TransportBenefits Value-added Integrated IntegratedServices Operational Advantages New Service Access Options Now

9. 29/03/01 8 Fonet Global Inc.© Latin America’s VoIP Traffic

10. 29/03/01 9 Fonet Global Inc.© Latin America’s Six-Country International Long Distance Market $462.0 $513.0 $194.1 $113.4 $266.4 0.0 1000.0 2000.0 3000.0 4000.0 5000.0 6000.0 7000.0 8000.0 Market Revenues (US$ Millions) Traffic (Billions of Minutes) Argentina Brazil Chile Colombia Venezuela 53% Revenues $1,732.5 Mexico 65% Traffic Total Market Value: US$3.3 Billion Source: IDC’s Latin America Telecommunications Continuous Information Service, 2000

11. 29/03/01 10 Fonet Global Inc.© Latin America’s Six Largest Domestic Long Distance Markets: $1,358.7 $228.0 $670.0 $453.2 0.0 5000.0 10000.0 15000.0 20000.0 25000.0 30000.0 35000.0 40000.0 45000.0 (US$ Millions) Traffic (Billions of Minutes) Argentina Chile Colombia Venezuela Total Market Value: US$10.9 Billion 45% Revenues 29% Revenues $4,422.5 Brazil 54% $2,962.3 Mexico 24% Source: IDC’s Latin America Telecommunications Continuous Information Service, 2000

12. 29/03/01 11 Fonet Global Inc.© The Business in detail Local Loop Network Provider VOIP Devices Origination International LD Origination Domestic LD Local Loop Value Added Services - New Last Mile Technology (ATA Devices) - Switchless, Gatekeeper and Softswitch based …) -De-Regulation-Monopoly -Customer Frustration with Telcos Traffic Termination Unified Telephony™ Wholesale

13. 29/03/01 12 Fonet Global Inc.© Termination Model Internet Local Termination Internet or VPN Local Termination Domestic Carrier Worldwide Carrier ICC (SLP) IBC Long Distance Rest of the World Termination PSTN Long Distance

14. 29/03/01 13 Fonet Global Inc.© PSTN Long Distance Origination Model ( DLD _ILD ) Internet Fonet Fones Dial Up or Dedicated Link IPCall ICC (SLP) Local Access and 800 numbers IPCollect 800 Access Nationwide Local Termination Internet Local Termination Querétaro IBC Long Distance Termination Nationwide Rest of the World Termination Red iBasis

15. 29/03/01 14 Fonet Global Inc.© Local Loop Added Value Services Fonet Fone Unified Messaging Network Announcements User Announcements (pre- call) Call waiting Call Retrieve Forward on Busy Forward on no reply Conditional Call Forward (caller ID) Time Dependent Call Forward Voice and Fax Mail Conference Services (pre- arranged) Call Deflection Group Call Pick Up Line Hunting Fonet Service Network™

16. 29/03/01 15 Fonet Global Inc.© Residential Population Total market Residential market Residential geographical market SME Companies Total market SMC market SMC geographical market Target Markets

17. 29/03/01 16 Fonet Global Inc.© Regulation LATIN AMERICA´S IP TELEPHONY RISK FACTORS LATIN AMERICA´S IP TELEPHONY RISK FACTORS QQS Bandwidth Availability Equipment Interoperability Equipment Interoperability Year 2001/2002 Regulation QQS Bandwidth Availability Bandwidth Availability Equipment Interoperability Equipment Interoperability Year 2004/2006