Flows Impact on Jamaica

1. Caribbean Development Plans:
“Broadband the future of
Regional Communications”
Michele English
President and COO
Columbus Communications, Flow Jamaica

2. Concepts to Discuss today
• Who Are We
• The International Context: Changing world
• The Regional Context: Lagging Behind
• Poised For Change: Enabling Broadband Use in the Region
• The Impact of Columbus’ Communications

3. Columbus Communications Inc
 Columbus International Inc. is a leading provider of broadband capacity solutions and broadband-enabled services to
commercial and retail customers in, or operating in, the Caribbean, Latin American and North American markets
 Manages business under two operating segments: Columbus Networks (“Wholesale”) and Broadband Services (“Retail”)
 Over 1,700 employees
Columbus Networks Broadband Services
Clear Channel Broadband Capacity Columbus Columbus Columbus
IP Services Trinidad Jamaica Grenada
Other Network Services
Cable Television
High Speed Internet
IP Telephony
Other Network Services
 Columbus Networks provides full suite of advance, point-to-point, clear channel wholesale broadband capacity and IP services
over its owned and operated, state-of-the-art, subsea fiber optic cable network to clients located in 21 countries and territories
throughout the Caribbean, Latin America and North America
 Broadband Services operating segment provides broadband-enabled services such as cable television, high speed Internet
(“HSI”) access and IP telephony services under the unified brand name “Flow” to retail and commercial customers in
Trinidad, Jamaica and Grenada

4. Columbus Networks, Superior Solutions
Columbus Networks is a carrier’s carrier providing advanced,
high-speed bandwidth on its ARCOS Cable System to:
Telecommunications Internet Service Cable TV
companies Providers Operators
Columbus Networks aims to identify and address telecommunications
opportunities in Latin America and the Caribbean that have significant
upside potential in both growth, value and service offerings.

5. Network of the Future
Capacity Solutions
1
1 Backhaul deployment
a
1 initiatives
b E-Commerce Park
Broadband Services
2
Columbus Jamaica
3
Columbus Trinidad
4
Columbus Grenada
The most robust, operating platform in the Caribbean which can be
uniquely leveraged to capitalize on numerous growth opportunities in the
region

6. Flow Jamaica – Network

7. Broadband, International Context
• Broadband deployment could contribute $500B to GDP in the US and $400B
in Europe.
• Total ICT sector employment grew by over 8% annually between 1995 and
2005 in developed countries, and represented 5.5% of total business
employment.
• Internet business solutions have enable private companies in the US to save
$155B – 2005
• Helped companies in France, Germany and the UK increase revenues $79
billion.
• A survey of more than 2,000 US businesses - that Internet business solutions
resulted in a net gain of almost $600 billion by 2001 and would add .43
percentage points to future productivity growth through 2011

8. Internet Usage, International Context

9. Broadband, Regional Context
Internet Usage in the Pan Caribbean Region
Internet Broadband
Population Internet Users % Pop. Growth Users Broadband
Pan C aribbean Region ( 2008 Est. ) Latest Data Penetration 2000-2009 Penetration
Mexic o 106,919,000 28,540,000 26.69% 645% 7,596,000 7.10%
Cent ral Americ a 41,608,899 5,837,000 14.03% 627% 770,700 1.85%
Andean 86,253,000 19,853,999 23.02% 374% 3,375,000 3.91%
The Caribbean 18,303,534 5,603,000 30.61% 832% 915,000 5.00%
TOTAL 253,084,433 59,833,999 23.64% 433% 12,656,700 5.00%
Nort h Americ a 340,831,831 252,908,000 74.20% 134% 163,231,660 49%
Data as of Dec 2009
Sources: Pyramid Research, Internetworldstats.com, ITU, Nielsen/Net Ratings, Convergencia Latina, DSL Forum

10. Poised For the potential of Broadband
Evolution of Internet Applications Downloads per Residential User – GB Per Month
Downloads per residential user are expected to grow rapidly across the
region driving demand for capacity and IP services

11. Columbus, Bringing Broadband to the Region
• Invested more than $700m in off and on Island infrastructure.
Projected to reach $1 billion over the next 4-5 years
• Providing an information infrastructure for advanced
broadband enabled Services and unparalleled business
solutions;
• Enabling innovation by continually exceeding the demand for
Bandwidth Intensive applications;
• Using cutting edge technology to transform the way the region
works, learns and plays

12. Unparalleled Connectivity
 First regional network to provide a true ring configuration Clockwise
 19 Countries United States
 Connecting over 200 million people Bahamas
Turks & Caicos
Dominican Republican
Jamaica
Puerto Rico
Curaçao
Trinidad
Venezuela
Colombia
Ecuador
Panama
Costa Rica
Nicaragua
Honduras
Guatemala
El Salvador
Belize
Mexico

13. Unparalleled Business Solutions
Quality of service Intelligent Routing
One of the best Service Level Agreements in the Traffic from the CN is directly routed to all major IP
region backbones using an overlay network of Tier-1
– 100% network availability providers and regional peering
– Less than .03 % packet loss
– 50ms average or less latency
Flexible billing solutions Scalable connections
CN IP Transit Service is offered as full port, tiered or Bandwidth available from E1 to Gigabit speeds
burstable connection, to meet the need of your
bandwidth demand and business model
Built-in redundancy Network Management
Connection to all major IP backbones through our CN IP Transit provides one point of contact at CN’s
state-of-the-art submarine broadband fiber optic Network Operations Center (“NOC”) providing high
network using next generation routing technology network availability and performance
Monitored and maintained 24X7

14. Flow – Triple Play Services
Watch. Talk. Click.

15. Impact of Columbus
• Dramatic Increase in Capacity
• Greater Resiliency and Redundancy
• Dramatic reduction in cost to both business and residential
customers (by 100% in some cases)
• Critical Business Solutions
• Enabling Business Development and Innovation

16. Impact of Columbus - Regional
Pre - Columbus
Circuit Speed Jamaica Bahamas Trinidad
1.544 Mbps US$16,000 US$10,000 US$24,000
Post - Columbus
Circuit Speed Jamaica Bahamas Trinidad
1.544 Mbps US$5,000 US$4,200 US$11,000
Savings US$11,000 US$5,800 US$13,000
Est. monthly comparative costs. IPLC to Miami before and after CFX
Source: Columbus Research

17. Impact of Columbus - Jamaica
Commercial
Capacity Pre-Flow Market Flow %
Today Today Decrease
E1 (2 Mbps) to $22,000 $9,000 $6,000 73%
Miami
DS‐3 TO Miami $160,000 $60,000 $35,000 78%
IP per Mbps $7,000 $500 $148 98%
Prices shown in US$ per month. Based on Jamaican prices.

18. Impact of Columbus - Residential
Data Prices Case Study – Flow Jamaica Market Entry
Capacity Pre-Flow Competition Flow %
Today Today Decrease
1.0 Mbps $90 $22.03 N/A 76%
2.0 Mbps $120 $24.49 N/A 80%
4.0 Mbps N/A $27.83 N/A N/A
8.0 Mbps* N/A $30.06 $27.33 N/A
15.0 Mbps N/A N/A $35.70 N/A
*Competitors 8Mbps offered in very limited areas. Prices in US$.

19. Flow’s Impact on Broadband
Source: OECD Statistics

20. National Impact - Jamaica
• Impact on macro business environment
• Job Creation
 Currently 500+ employees
 Building Jamaica’s workforce
 Transfer of technical skills and new technology
 Job creation throughout Jamaica
 Attracting International Investors
 Unprecedented bandwidth now available to the island
 the data connectivity of Jamaica is now on par with any first-
world country
 When the region is threatened by hurricanes, the likelihood of
Jamaica being cut off from the rest of the world will be
significantly reduced, with the addition of this undersea fibre
optic connection.

21. Impact of Columbus – Call Centre Industry - Jamaica
Pre – Columbus (2006)
Number of Call Number of Number of
Centres Seats Agents
20 4,555 9,000
Post – Columbus (2010)
Number of Call Number of Number of
Centres Seats Agents
36 9,419 24,824
Growth 80% 107% 176%
Source – JTI/Jampro & Zagada Market Inc.

22. Flow’s Impact in Jamaica
• Impact on macro business environment
• Reducing the digital divide/Creating an knowledge based society
– Building a Knowledge based society- provide true broadband
infrastructure to all of Jamaica
• Commitment to social development:
– Multimillion dollar “Building Leader Through Technology” programmes that:
• Focus on enhancing the learning environment of students through the free
provisions of Flow’s internet and educational cable products to schools
throughout Jamaica
• Focus on building strategic partnerships with other private sector partners to
build youth leadership

23. Social Impact of Columbus’ Broadband

24. Thank You