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Welcome to the Isle of e business

Welcome to the Isle of e business. Ron Berry e business Inward Investment Advisor. The Isle of Man Background Facts. World’s oldest continuous parliament No party politics Not part of the UK Special relationship with EU. The Isle of Man Background Facts. Population 80,058

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Welcome to the Isle of e business

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  1. Welcome to the Isle of e business Ron Berry e business Inward Investment Advisor

  2. The Isle of Man Background Facts • World’s oldest continuous parliament • No party politics • Not part of the UK • Special relationship with EU

  3. The Isle of Man Background Facts • Population 80,058 • 52% not born on the island • 1.5% unemployment • Financial services account for 36% of GDP • GDP forecast to increase by 6%

  4. The Isle of Man Background Facts • Standard & Poor’s and Moodys “AAA” credit rating • 14 awards from international financial publications since 1999 • Endorsements by UK Home office- • The Edwards Report • The Financial Action Task Force (FATF) • Financial Stability Forum (FSF) • International Monetary Fund (IMF)

  5. Taxation in the Isle of Man • Companies • 0% income tax except for • banking • IOM land/property • No withholding taxes • No taxes on capital • VAT as per UK

  6. Taxation in the Isle of Man • Individuals • Low rates of income tax • £8,850 tax-free allowance • £10,500 @ 10% • rest at 18% • maximum tax £100,000 pa per individual • No taxes on capital • VAT as per UK

  7. Committed to e business • Charteris e business strategy report approved by Tynwald • Chief Minister took personal responsibility • e business Director appointed • Started with £1 m budget • Electronic Transactions Act – a world first

  8. Committed to e business • Significant growth by 2014 • Second largest sector behind banking • Greatest potential for the future • Five –fold growth in GDP in this sector • Already running significantly ahead of projections

  9. Committed to e business • Private sector £30m investment in data hosting facilities • Government MEA cable • Government’s e-services programme

  10. Committed to e business • Probably the first education authority in the British Isles to have all classrooms wired for internet access • All schools connected via wireless broadband • Every full time teacher given lap tops

  11. Committed to e business • The Isle of Man where business and technology converge • e business targets - • e gaming • e downloads • e travel • e money • IP and IA

  12. Government Grants • Up to 40% equipment grants • Up to 40% building grants for new build • Up to 40% for rent payable for the first two years • Up to 40% revenue grants for marketing expenditure when targeting new markets, relocation and set up costs • Up to 40% training grants

  13. Government Grants • Viability of the business • Future prospects • Contribution to Gross National Product • Employee Levels • Tax residency of Beneficial Owners • Average Salary Levels • Spend in the local economy

  14. Our way of life • Not isolated by our location • Transport and communications • Advantageous tax system • Investment in education • Excellent health care • Security and supportive environment

  15. Our way of life • Freedom to Flourish – our promise to our people • A land of opportunity where people and business find the right environment to reach their full potential

  16. Isle of Man e- Business & Telecommunications Stephen Kane E-Business Development Manager

  17. Market regulated since 1986 Telecoms Policy – core infrastructure provider, plus strong service level competition World-class on and off-island infrastructure Customer choice 3 off-island networks (BT, C&W and MEA) 3 mobile licences (MT, C&W, Cloud 9) 5 ISP licences 4 Data Centre Hosting Providers Market Overview Isle of Man Telecommunications

  18. World-class telecoms and IT infrastructure is central to the Manx Government’s e-business strategy…. Flexible and responsivelegislation Business friendly tax regime Political stability Excellent quality of life World-class Telecoms, IT infrastructure & services

  19. World Class Telecommunications infrastructure • Total IOM Connectivity • Highly resilient multiple service provider • physical off-island fibre links via BT, C&W and MEA • Significant capacity for future growth • Manx Telecom’s Connectivity • Excellent reliability and performance using state of • the art MPLS technology • Live 2 x STM16 (2 x 2.5Gbps) connectivity to UK on • an STM64 (2 x 10Gbps) backbone • Guaranteed Diversity with significant capacity for • future growth • Highly resilient - Internet traffic carried via multiple • service providers and partners • 24 x 7 x 365 Fully Managed and SLA Guaranteed • Services • No single point of failure

  20. World Class Electricity Supplies • Locally generated power and electricity from the UK grid. • - Manx Electricity buy and sell electricity to/from the UK • Grid • The Longest AC Subsea Cable in the World • - 105km cable generates 40MW • - Installed in October 2000 • New Power station opened In 2003 • - combined cycle gas turbine (CCGT) power station

  21. Multiple Data Centre Solutions Providers • Multiple providers of Co-Location and Managed Service • Data Centre Solutions • > 1000 rack spaces available on island. • A choice of providers to suit any installation • - single server to multi rack co-location hosting • - Enterprise Managed Service platforms for Blue Chip Operators • - Local and Offshore Disaster recovery platforms • Major Industry Sectors Currently Hosted on the Island • - International Offshore Finance • - Government • - International E-Gaming • - Transport and Tourism • - IT, Telecom’s and Software Development • Infrastructure Quality • - A range of Purpose built an retrofitted high quality Data Centres • - Fully diverse and guaranteed electricity • - Fully diverse and guaranteed connectivity • - 24 x 7 x 365 engineering resources Main Data Centre Operators

  22. Part of the O2 division of the Telefónica group global reach/local focus O2 market capitalisation = £10bn Telefónica market capitalisation = €37bn MT awarded new 15 year licence in January 2004 Regulated by the Isle of Man Communications Commission (Ofcom for radio frequency and numbering) Fully integrated fixed, mobile and internet service provider 80K mobile customers, 60K fixed access lines 15K ADSL lines (99.9% coverage, 50% penetration) Over £50M invested in last 5 years Technology test-bed: First 3G mobile trial outside Japan (2002); World’s first commercial 3.5G mobile service (2005) First Secure E-Government MPLS Network in Europe (2006) Fully converged Next Generation Network (NGN) – due for completion December 2008 Purpose Built Data Centre Douglas North Backup Data Centre Douglas Central Manx Telecom – Case Study

  23. Manx Telecoms – World Class MPLS Connectivity • Diverse • Cisco Powered MPLS Network • Guaranteed diversity on and off Island • Each leg is protected SDH • (backup paths not shown) • Resilient • The only network guaranteed to fix itself • in <50msutilises • MPLS protection, is designed so that • any failure goes wholly un-noticed by • users (recovery <50ms) • Scalable • The only network guaranteed to scale to • 20Gbs-1, and beyond • Cost effective • Core Resilience built into the costs • QoS – Designed for Voice and Data 23

  24. Manx Telecom - Internet Connectivity Highlights E-Gaming designed connectivity solutions 8 x 1Gb connections to Tier 1 and peering Partners Level 3, Verizon, Packet Exchange, London Internet Exchange, Amsterdam Internet Exchange, Frankfurt Internet Exchange Flexible Services 95th percentile billing or fixed rate billing Resilient Dual homed solutions Full Range of Fully Managed SLA Guaranteed local and International MPLS and Private Circuit solutions to complement any Data Centre installation. 24

  25. Manx Telecom World Class Data Centre Facilities Douglas North Data Centre • Purpose Built £10 million investment • 18 months in design and Build • 420 square metres for Customer Use with expansion • Business Continuity Solution for the Isle of Man plc • Fully diverse and network connectivity • Fully resilient components • Environmentally optimised (air conditioning & humidity control) High Density Cooling Available up to 8kW per rack • Dual UPS’s with dual back-up generators • Advanced fire detection and suppression and very early warning systems • Plus: Back-up facility at Douglas Central • Design to achieve Tier 4 status + Douglas Central Data Centre for Geographic Diversity 25

  26. Manx Telecom Data Centre Managed Services 24 x 7 x 365 Technical Call Centre Dedicated Enterprise Hosting Team Services Server & Operating System Management Network Infrastructure Management Procurement & Maintenance Remote Hands Operations Support Tailored Monitoring Solutions Managed Backup & Support Professional Services Network, facilities and Global Monitoring systems Security Management, ISO 27001 Douglas North and Hosting Division Approved. All staff security vetted, all sign the Official Secrets Act. Multi Layer, Multi Vendor DDOS Protection through resilient Riverhead/Arbor Solution 26

  27. Manx Telecom Professional Services Cisco Certifications - largest Cisco accredited resource on island. 70 IP Engineers 35 CCNA to CCIE. Microsoft Certifications Gold Certified Partner. - largest Microsoft resource on island. 17 Certified Professionals, 71 Certifications. Voice Services - Multi Vendor solutions, Converged PABX and VOIP solutions Design, Consultancy and Implementation services Server & Operating System - Multi Vendor hardware solutions, Microsoft, Unix and Linux OS Network Infrastructure - Cisco, HP Security - Cisco, Checkpoint, Arbor, ISO27001, EC Certified Ethical Hackers and Security Specialists Procurement & Maintenance - Multiple suppliers via O2 and Telefonica Procurement Channels Tailored Monitoring Solutions - Perspective Data Centre and Global Internet Monitoring Remote and Onsite 24/7 Support services Onsite 24 x 7 365 Technical NOC 24 x 7 x 365 Call Centre 24 x 7 x 365 Specialist Technical Engineering, Power and Estates Management Team On Guaranteed Response 27

  28. Manx Telecom Mobile Solutions Timeline of 3G HSPDA services November 2005 Data services launched offering 3G and 3G HSPDA with downlink speeds up to 1.8Mbps, uplink 128 Kbps Summer 2006 3G voice services launched offering 3G December 2006 Network upgrade to higher speed HSPDA Services: Uplink speeds of up to 384 Kbps Downlink speeds of up to 3.6 Mbps 3G HSPDA data cards • Currently undergoing network testing with new 3.6 Mbps capable devices to offer enhanced performance: • Sierra Wireless • AirCard 875U – USB Modem • AirCard 875 – Data Card 3.6Mbps • Novatel XU870 Data Card Express Card (upgradeable to 7.2 Mbps) • 4G Systems HSPDA / WiFi Access Point (Residential Gateway) • Huawei USB modem 3.6 Mbps 28

  29. Manx Telecom Mobile Solutions – 3.5G HSPDA handsets • Handset manufacturers slow to bring 3.5G HSPDA • devices to market with 1.8 Mbps chipsets. • Possibly due to battery management issues • HSPDA Networks deployed in advance of general • device availability • New HSPDA devices coming to market: • HTC TyTn – Windows Mobile PDA, 1.8 Mbps device • Palm Treo 750 – Windows Mobile PDA, 3.6 Mbps device • Nokia N95 – Symbian 9.1, 3.6 Mbps device • Nokia N95 selling very well

  30. Q & A

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