1. Dr. Girish Pathak President, ITE Services Inc. Transformation of Caribbean Service Providers CANTO conference, June 21 2006

2. … unleashing the business potential of digital convergence ITE services agenda macro technology trends, 1996-2005 case for transformation @TELUS, circa 2001 the transformation – before, after and the process … 2001-04 emerging business issues/opportunities, 2005-06 transformation at a Caribbean service provider … 2006 checklist for service providers ITE Services … value proposition q/a

3. … unleashing the business potential of digital convergence ITE services macro technology trends, 1996-2005 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

4. … 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

5. … 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 2001-04, stock at $20.00 services, people, technology, systems customer set  profitability

6. … 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

7. … 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

8. … 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?

9. … 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

10. ITE Services Inc. expertise, integrity, and independence Contact: Girish.Pathak@ITEservices.net; 617 281-1919Girish.Pathak@ITEservices.net