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  1. 1. Jazztel: Wholesale division presentation Madrid April, 2009
  3. 3. Introduction to JAZZTEL: an overview 56% 11% 33% Revenue Split Gross Margin Split <ul><li>... primary focus on broadband residential services </li></ul>0 Residential Corporate Wholesale <ul><li>ADSL (ULL, resale) </li></ul><ul><li>Voice (Single invoice & pre selection) </li></ul><ul><li>TV </li></ul><ul><li>Others </li></ul><ul><li>Data services (leased lines, DSL, VPN,…) </li></ul><ul><li>Voice (Traditional, IP voice, ...) </li></ul><ul><li>Carrier </li></ul><ul><li>Resale </li></ul><ul><li>ISP´s </li></ul><ul><li>Others </li></ul><ul><li>JAZZTEL has the largest alternative fixed network infrastructure in Spain. </li></ul><ul><li>... providing telecom services to all key markets.. </li></ul>Internet Other operators Almost 75% of JAZZTEL’s gross margin is generated by the residential business line
  4. 4. Introduction to JAZZTEL: Jazztel notoriety Heading 1 – Table of Contents Because Jazztel is a wide and reliable project Because Jazztel is a reference value at the Spanish stock market 1 2 3 <ul><li>Jazztel is “the big survival” of the consolidation of the Telecom Spanish market. </li></ul><ul><li>This has been possible due to the high value of Jazztel’s assets… </li></ul><ul><li>..and to its expectations and capacity to generate organic growth levering on its assets. </li></ul><ul><li>Capitalization of €460MM </li></ul><ul><li>About 100.000 minor stakeholders </li></ul><ul><li>Very high trading volume, resulting in a very liquid value (>2M/day ’09) </li></ul><ul><li>Followed by some of the biggest analyst firms: </li></ul><ul><ul><li>JP Morgan </li></ul></ul><ul><ul><li>Fortis Bank </li></ul></ul><ul><ul><li>Santander </li></ul></ul><ul><ul><li>La Caixa </li></ul></ul><ul><ul><li>Banesto </li></ul></ul><ul><ul><li>BPI </li></ul></ul><ul><ul><li>Ibersecurities </li></ul></ul><ul><ul><li>... </li></ul></ul><ul><li>>€348MM 2998 annual revenue </li></ul><ul><li>Jazztel employs more than 2.000 people </li></ul><ul><li>Customer base: </li></ul><ul><ul><li>374.610 ADSL clients (94% ULL) </li></ul></ul><ul><ul><li>434.777 voice services customers </li></ul></ul><ul><ul><li>18.116 enterprise services </li></ul></ul><ul><ul><li>180 wholesale contracts with other operators </li></ul></ul><ul><li>533 unbundled local exchanged with spare capacity to allocate over 1,5MM services </li></ul><ul><li>Backhaul network and metropolitan access of more than 4.300 Km of fiber </li></ul>Jazztel is a notorious and relevant company in the Spanish telecommunications landscape, WHY? Jazztel as a reality 8,1% 5,9% 6,0% 6,0% 15,0% 23,0% 36,0% Other Ya. com Orange Vodafone / Tele2 ONO Telefónica JAZZTEL Sample: 6,600 votes http://www. adslzone .net/article2484- jazztel - es -el- operador -del-2008- mas - valorado - por - los - internautas .html Because Jazztel delivers a high quality service and product 1
  5. 5. Introduction to JAZZTEL : Towards profitability Sustainable revenues increase … … And gross margin improvement SG&A costs controlled Important EBIDTA growth (%) (€ mm) (1) (€ mm) 303 348 +15% +13% 165 146 (€ mm) Source: Jazztel. Note: values exclude CCS operation (1) 7,6 MM€ extraordinary revenue included 149 159 +7% -3 6,2
  6. 6. Jazztel residential offering JAZZTEL’s offer is complete, adding in ‘08 mobile services @ Main product (84% of ADSL base) Single invoice services Ready! Triple Play: <ul><li>Free national calls. </li></ul><ul><li>Up to 20Mb ADSL. </li></ul><ul><li>Jazztelia TV (IPTV), with 37 thematic television channels and Video On Demand. </li></ul><ul><li>Phone line set-up fee and maintenance included </li></ul><ul><li>“ We give you your money back if you are not satisfied” </li></ul>Triple play offer <ul><li>All voice, data and TV services in just one invoice, which also includes the line fee. </li></ul><ul><li>The single invoice increases customer satisfaction and reduces churn. </li></ul>
  7. 7. Jazztelia TV Videoclub (VOD) Wide channel offering JAZZTEL re-launches IPTV services with more than 40 channels, wider VoD offer at more competitive prices in 2009
  8. 8. Mobile Services “ FULL OMV” business model Enabler Radio access provider Marketing, Sales, voice termination Jazztel has a full MVNO model that allow a wide variety of voice & data services at very aggressive rates. Some new products in 22009 Data (Internet) services Voice services Transmission & switching Product & service delivery Invoicing Customer care Marketing & Sales
  9. 9. In house Customer Care In house customer care division <ul><li>Jazzplat started to operate in December 2005. </li></ul><ul><li>Almost all customer care services were migrated to the new platform to Argentina during 2006. </li></ul><ul><li>Nowadays, Jazzplat headcount is 1.285 employees of whom 1.120 are agents. </li></ul><ul><li>Jazzplat occupies about 5.100 m 2 </li></ul>Jazzplat in-house structure allows the company to provide a superior and dynamic customer care service.
  10. 10. Jazztel bets for quality of service at a good price Low High Cheap Expensive Price perception Optimum quality for a reasonable price: “ The intelligent choice” - + - + Serviceability and Quality Affordable Value for money http://www. adslzone .net/article2484- jazztel - es -el- operador -del-2008- mas - valorado - por - los - internautas .html 8,1% 5,9% 6,0% 6,0% 15,0% 23,0% 36,0% Other Ya. com Orange Vodafone / Tele2 ONO Telefónica JAZZTEL 1 Sample: 6,600 votes
  12. 12. The wholesale offering Access services: toll free, local & premium access. <ul><li>Coexistencia de </li></ul>With revenues exceeding €100mm, the wholesale division of Jazztel offers quality Voice, Data, and Prepaid calling services, which originates over 1,5 billion international minutes per year. TDM & VoIP Interconnection available over Internet (SIP & H.323) Voice Gold Termination Service based in Premium Quality routes ATM/IP technology (DSL) with a full range of products DSL White Brand products IP transit Several calling cards covering all national and international destinations Targeted cards to immigrants and travellers (JazzCard, JazzAsia, JazzLatina, JazzAfrica) Customized cards for specialized clients (Jazztel White Brands) TDM & VoIP Interconnection available over Internet (SIP & H.323) Possibility to buy cards in Spain and use them abroad Voice services Data services Prepaid calling card Leased lines (from E1 up to wavelength)
  13. 13. JAZZEL own Prepaid Calling Cards <ul><li>Traffic distribution: </li></ul><ul><ul><li>94% Asia </li></ul></ul><ul><ul><li>2% Europe </li></ul></ul><ul><ul><li>2% America </li></ul></ul><ul><ul><li>0% Africa </li></ul></ul><ul><li>Traffic Distribution: </li></ul><ul><ul><li>86% America </li></ul></ul><ul><ul><li>11% Europe </li></ul></ul><ul><ul><li>2% Asia </li></ul></ul><ul><ul><li>0% Africa </li></ul></ul><ul><li>Traffic distribution: </li></ul><ul><ul><li>75% America </li></ul></ul><ul><ul><li>17% Europe </li></ul></ul><ul><ul><li>7% Asia </li></ul></ul><ul><ul><li>2% Africa </li></ul></ul>New Product 75 % Africa 15 % Asia 8 % Europe 2 % America
  15. 15. JAZZTEL national network JAZZTEL has in place the largest coverage network among Spanish alternative operators Illustrative <ul><li>Full access termination capacity in Spain & direct optical interconnection with: </li></ul><ul><ul><li>All mobile operators </li></ul></ul><ul><ul><li>The main altnets </li></ul></ul><ul><ul><li>Telefónica </li></ul></ul><ul><li>6 TDM Switches and one SoftSwitch for TDM and IP interconnections </li></ul><ul><li>Backbone: 21.569 Km </li></ul><ul><li>Local access: 4.302 Km </li></ul><ul><li>ULL local exchanges: 531 with coverage for IPTV of which 451 are connected with fiber (85%) </li></ul><ul><li>Fixed line coverage: 62% </li></ul><ul><li>48/50 Provinces covered, major economic hubs (Madrid, Barcelona, Seville, Malaga, Zaragoza and Bilbao) </li></ul>2 4 3 2 4 1 1 6 3 5 11 9 1 2 4 3 2 11 5 3 12 1 50<= Penetration < 70% 40% <= Penetration < 50% 25% <= Penetration < 40% Penetration => 70% Number of local exchanges 98 2 3 22 19 27 9 4 96 25 1 1 7 31 6 12 2 9 6 14 5 12 3 2 6 12
  16. 16. Jazztel international network Current PoP International Voice Network This allows Jazztel to fulfill our offer with a very attractive and competitive international pricing. Interconnections & Peering Points Agreements <ul><li>Interconnection with more than 150 international operators in Europe, Asia, Africa, and North / South America. </li></ul><ul><li>Due to the increasing immigration coming to Spain, JAZZTEL is optimising its termination routes in Latin America, Europe, Eastern Europe, and North Africa. </li></ul><ul><li>We have reached peering agreements in the most relevant world data centers. </li></ul><ul><li>JAZZTEL has significantly increased its presence on a global level by increasing its Points of Presence (PoP). </li></ul><ul><li>Exchange of voice and data traffic focuses on the points with the greatest traffic concentrations. </li></ul><ul><li>Existing POPs opened in Madrid, London, Paris, Frankfurt, Milan, New York, Miami and Hong Kong. </li></ul><ul><li>Jazztel offers interconnection possibilities in TDM and IP (VoIP) in all Jazztel’s POPs. </li></ul>Miami New York Paris London Tele House Madrid Milan Hong Kong Frankfurt-Ancotel Lisbon Jazztel IP network Espanix (ESP) Catnix (ESP) NAP (USA) Linx (UK) Hkix (Hong Kong)
  17. 17. Jazztel direct routes Angola, Cameroon, Cote D’Ivoire, Gabon , Ghana, Guinea, Kenya, Morocco, Mali, Nigeria, Somalia, South Africa, Tanzania, Uganda and Zambia. Argentina, Bolivia, Brazil, Canada, Chile, Colombia, Dominican Republic, Ecuador, Mexico, Panama, Paraguay, Peru, Uruguay, US, and Venezuela. China, Philippines, Hong Kong, India, Japan, Korea, Malaysia, New Zealand, Singapore, Taiwan, Sri-Lanka and Vietnam. JAZZTEL has currently direct routes to 69 countries worldwide. Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France Greece, Germany, Hungary, Ireland, Israel, Italy, Latvia, Moldova, Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, UK, Ukraine. Europe (27 countries with direct routes) America (15 countries with direct routes) Africa (15 countries with direct routes) Asia & Pacific (12 countries with directs)
  18. 18. Expert and dynamic team of professionals Contact address Wholesale division organizational Chart MD Wholesale Luis Suñer Marketing Cristina Moreno Interconnection, Purchasing, Provisioning & Engineering Francisco Gómez Product management Voice & Data Javier Irigaray Product management Calling Cards Rosa Dominguez Reseller & Calling Cards Miguel Revuelta Jazztel Wholesale Services, C Anabel Segura, 11 Edificio C (Complejo Albatros) CP: 28108 - Alcobendas, Madrid, Spain E-mail: [email_address] Phone: (+34) 91 183 9323. For more information, do not hesitate to contact Jazztel wholesale department. Thank you for your attention! <ul><li>A very senior team of professionals with many years of experience in the telecom sector and more concretely developing the wholesale sector in Spain </li></ul>Sales & Customer Care Santiago Núñez-Lagos Voice carrier relations Alfonso González Technical Customer Care Goretti Serrano Data carrier relations Jaime Jaén Voice purchasing J.A. Serrano