EEnablement Summit: eEnabling through Partnering 56 December 2000 ANA Hotel Sydney

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E-Enablement Summit e-Enabling through
Partnering5-6 December 2000ANA Hotel Sydney
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AGENDA

• Overview of PowerTel
• E-commerce environment
• What is PowerTel E-enablement?
• Case studies
• Conclusion

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Company Overview
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KEY DIFFERENTIATORS

• Third largest fibre optic network provider
• 2400km fibre deployed along Australias eastern
  seaboard
• 329 buildings accessed in Sydney, Melbourne,
  Brisbane, and Gold Coast
• Southern Cross Capacity to the U.S.

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KEY DIFFERENTIATORS

• New-World Network
• ATM on optical fibre enabling single network
  multi service
• best of breed suppliers
• Supporting the legacy service and provide easy
  upgrade path

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KEY DIFFERENTIATORSTHE THREE KINGS
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The E-commerce Environment
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THE NEW E-ECONOMY
ISP and E-commerce Revenues 1999-2001
Internet Market Revenues 1998-2001
Source Paul Budde, 2000-2001
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THE NEW E-ECONOMY
ITT Outsourcing Market Revenues 1997-2001

• Trend towards total outsourcing
• Main focus in outsourcing has changed
• Movement towards E-sourcing

Source Paul Budde, 2000-2001
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THE E-ECONOMY

• Driven by
• deregulation
• decreasing bandwidth prices
• emergence of alternative lower cost of last mile
  access
• increasing acceptance of using internet as a
  business tool.
• emergence of bandwidth-hungry applications

Web enablement is not just used to obtain cost
savings, but is an essential tool for business
survival
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KEY ISSUES FOR BUSINESS

• Increasing complexity
• Compounding growth of electronic business
• Cost saving through web-enabled back office --
  Eating you own dog food
• If you dont cannibalize your own products your
  competitors will
• On-going cost of rapid change
• Worldwide technology skills shortage

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IMPACT ON ENTERPRISE

• The Internet Model with fewer hard assets, a
  direct pipeline to customers offers a new level
  of speed and operational efficiency for those who
  master it - and huge dislocations for those who
  dont .

Source Internet Anxiety, Business Week Online,
June 28, 1999
The highly fractured market will
consolidate around telco services. Users will see
carriers as the answer to expanding needs.
Source Forrester, Business ISP Evolution, 1997
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IMPACT ON SERVICE PROVIDERS
The rate of growth of Internet users and traffic
means we have to build a network which will be
able to scale to support millions of users at the
highest possible speeds. Source
China Telecom
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PowerTel E-enablement
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WHAT IS POWERTEL E-ENABLEMENT?

• Providing the outsourced communication
  infrastructure to facilitate the deployment and
  management of customer applications
• Giving businesses the ability to achieve cost
  savings and to expand into new market
• Reducing the task of management of non-core
  network and operational activities
• Flexibility of offering customized solution
  without the substantial up front capital risk

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POWERTEL PRODUCTS SERVICES
Phase I ATM Leased Line Frame Relay
Phase II Managed Router Service Co-locate Interne
t
Phase III IP-VPN E-commerce IDC VISP
ValueProposition
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DRIVE TOWARDS INFRASTRUCTURE OUTSOURCING

• Outsourcing of activities for SPEED
• Helps deliver new paradigm
• Allows a change in focus
• Changes the rules of competition
• Seizes new operations economy
• Achieves a combined critical mass

Business Focus
Technology Infrastructure
Sales Marketing Generating Revenue
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OUR WHOLESALE OUTSOURCING OFFERING
Access Narrowband Broadband
Value Added Services
Hosting
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ACCESS SERVICES

• Narrowband dial access
• Leverages PowerTel economies of scale
• Utilises carrier to peer relationships
• Benefit from a lower total cost of ownership

Source Nortel Networks
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RISK MITIGATION LOW COST ENTRY
Traditional ISP Financial Model Invest, Operate,
Break-even, Profit
Linear Outsourced Financial Model Operate, Profit
Source Nortel Networks
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CURRENT ISP SOLUTION
ISP Owned Leased Telco Infrastructure

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WHOLESALE ISP SOLUTION
Public Internet ISP Owned WISP Owned
Server Farm
Server Farm
International Internet
Accounting
Wholesale ISP Internet IP-VPN Backbone

Authentication Authorisation
Southern Cross Cable
Domestic Internet
Server Farm

ATM IP
ATMIP


ATM IP
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ACCESS SERVICES

• Broadband access to PowerTel on-net customers
• Optical network extends to 329 buildings
• Connect speeds to customers from 2 Mb and below
  to 155 Mbps
• Ability to integrate LAN into WAN (Managed Router
  Service)
• Extend Ethernet directly to customers LAN

Ethernet Physical Connections
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Case Studies Partnerships that Enable
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NARROWBAND DIAL UP CASE STUDY GOCONNECT
Server Farm
International Internet
Accounting

Wholesale ISP Internet IP-VPN Backbone
Authentication Authorisation

Server Farm
Server Farm
Southern Cross Cable
Domestic Internet




ATM IP

ATMIP
Internet

AAA

ATM IP
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OVERSEAS BROADBAND CASE STUDYCOVAD
Covad CEO Robert E Knowling Strategy change
estimated to add US137 to annual bottom line
Source Nortel Networks
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VALUE ADDED SERVICES
service providers will need to look at
value-added services to drive their business
cases
June 2000
one of the most important revenue sources for
service providers over the next 5 years
April 2000
Service providers must move up the value chain to
be successful
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VALUE ADDED SERVICES

• Deliver market essential services
• Provide to differentiate value propositions
• Create service provider revenue streams
• Bundle to protect existing revenues
• Provide to with flexible access solution
• Narrowband and on-net broadband
• Wireless last mile mix in the future
• Value-added service bureau for access providers
• Subscriber-focussed services without the capital
  cost

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VALUE ADDED SERVICE EXAMPLES
Source Nortel Networks
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VALUE ADDED SERVICE EXAMPLES
Source Nortel Networks
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HOSTING

• High speed backbone
• Secure access
• 24 x 7 management
• HVAC
• Redundant power
• Forecast tolerance
• Carrier interconnects
• Wirespeed LAN
• Load balancing
• Network security
• Storage Network

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THE BUNDLED OFFERING VIRTUAL ISP
PowerTel
Partners
Solution

• Access network
• Managed IP infrastructure

• ASP
• Systems integrators

Bundled offering


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enablement for the eworld
Our Network. Your Solution.