The Real Challenges Behind the PowerTel Story

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The Real Challenges Behind the PowerTel Story
Rex Wood Enterprise Development Manager July
25th 2000
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AGENDA
_ Market Landscape 1998 _ Challenges and
Milestones _ Meeting the Challenge
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FUTURE FIRST - THE POWERTEL VISION

• Communications must be based on
• _ Scalable bandwidth
• _Cost-effective information exchange
• _PowerTel is the ENABLER

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KEY CHALLENGES

• Achieving a Sustainable Revenue Base
• Building a Network that delivers this

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AUSTRALIAN TELECOMMUNICATIONS MARKET

• _Deregulation
• Demand for high capacity, low price bandwidth

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THE TELECOMMUNICATIONS MARKET 1998

• High cost of bandwidth capacity
• Market demand suppressed
• Most companies utilising 2Mb and sub 2Mb
  services
• Limited choice
• No real wholesale market

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INTERCAPITAL BANDWIDTH

• Original business strategy to build CBD fibre
  loops only
• The Challenge?
• Inter capital Bandwidth expensive and capacity
  limited
• Our Solution?
• Deployment of our eastern seaboard network
  linking
• Brisbane, Sydney and Melbourne with the
  completion of
• the Sydney - Melbourne Network Link in June
  2000

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POWERTEL MILESTONES
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EXPERT PARTNERS _ WILLIAMS
Japan/US
TAT14
China/US
APCN2
Americas III
Southern Cross
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ESTABLISHING A PRESENCE

• Targeting the right buildings
• Laying fibre to the right buildings
• Gaining access to our customers in the right
  buildings

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CUSTOMER SEGMENTS
Business Type No. of Annual Comms Businesses Spen
d
Top 100 Corporates 100 gt5 million Corporate
Customers 2,500 200K - 5 million Small
Corporate 11,000 40K - 200K Medium
Business 19,000 15K - 40K Small
Business 790,000 lt15K
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EXPERT PARTNERS - DTU CONSORTIUM

• Existing duct access has afforded right of way
  access
• Fewer street works a lower cost of laying fibre

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BUILDING ACCESS

• Gaining the right to building access
• Evolution of the deregulated market
• Working with industry to resolve issues

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THE POWERTEL FIBRE OPTIC SOLUTION
Reduces Complexity Cost Enables Integrated
Solutions
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POWERTEL PRODUCTS SERVICES
Phase I ATM Leased Line Frame Relay
Phase II Centrex Managed Router Service Co-locate
Phase III IP-VPN Internet E-commerce
ValueProposition
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CURRENT BANDWIDTH PRICING
Source Telsyte
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MEETING THE CHALLENGE
PowerTel provides a highly powerful, scalable,
flexible, transparent and user friendly network
and has developed a market driven strategy that
will grow and evolve to meet demand for bandwidth
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Thankyou.