QITCOM 2011 Presentation: FTTH Models Presenter: Mr. Richard Jones - Managing Partner, Ventura Team

1. FTTH MODELS

2. We’re going to discuss learning from… “ 1 GIGABIT EVERYWHERE” Several million homes passed planned/implemented The business case and strategy for the World’s fastest ubiquitous network - Our own startup operator (rated top 5 in the World for service value by Point Topic) Planning a 20,000 cabinet FTTX deployment with up to $3 billion investment

5. You can’t normally build everywhere… Source: Ventura Team LLP

6. There is no ‘one right approach’ for every country/situation… These choices are considered in isolation and the cost of migration later forgotten FTTC (VDSL2) GPON PTP Typical Speeds >40Mbps <100Mbps <=1Gbps PROS Cheapest solution Cheaper than PTP initially (we’ve seen 5% savings where ducts are widely available to 21%) Saving in central office space Future proof Symmetric services Security for businesses CONS Limited speed Problems of quality of final copper drop Limited opex savings Shared fibre – not seen as secure as PTP Will probably need upgrade in the future Lots of fibre to install Larger central offices required

8. However take up is not always as high as expected – people don’t just buy technology Source: Ofcom How much more will people pay to double their broadband speed?

9. Getting the scenario right for any deployment is very complex – small changes create huge impacts on results This fictional example inspired by a real case shows different availability & competition scenarios (defined on the left) and resulting peak funding (PFR) and rate of return (IRR) and also takes into account the cross-impacts on mobile broadband

10. … and getting it wrong can be disastrous