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1. The Role of Technologyin Economic Development Art Price Chairman and CEO, Axia NetMedia Corporation Economic Developers Alberta Annual Conference April 11, 2012 www.axia.com

2. What’s the Reality of Business Today? • If you can’t effectively apply digital technology, you can’t compete in modern commerce.

3. Axia’s Successes to Date

4. Who are Today’s Global Industry Winners? • Integrated devices: • Apple, Google, Microsoft, other Software as a Service (SaaS) providers. • Experiential: • Facebook, Twitter, Foursquare, Flickr, social media applications.

5. Who Else is Winning? • Who does not rely on digital technology and is winning? • Modern industry uses digital technology more “comprehensively” than water or power. • We have lived through the “industrial economy;” we have only started the “digital economy.”

6. So What Does the End User Need? • The new business reality is any time, anywhere access to my information to leverage my intellectual capital; all on a team basis. • To compete, businesses need: • Reliable, powerful, ubiquitous digital connectivity. • On the buy / input side: Take advantage of competition among expert service providers that amortize their costs over many customers. (Result: low cost, fast, reliable and kept up to date.) • On the sell / customer service side: know your customer; serve your customer - even before they know what they need. • Every individual on the team connected with each other and the team “data base.”

7. ICT Sector is Growing Up / Not a “Kit Car” • Physical Components: • Four devices: pocket; pad; desktop; “big screen.” • All have sound, visual, touch. • All are digital to global digital standards. • All are connected to global digital transport (IP). • Purpose-built CPU infrastructure (hosting / Cloud). • Ubiquitous fibre and wireless infrastructure. • “Telco copper is dead.” • Soft Components normally “by others:” • Open access operating systems enable infinite number of apps written by anyone for the industry dominating devices. • Professionally managed services; not do-it-yourself with your IT department and your collection of components.

8. Axia’s NGN Ecosystem: Focused Experts EndUsers WirelessRSPs Software Axia NGN CloudProcessor Infrastructure Hardware & Related Infrastructure WirelineRSPs

9. Axia’s NGN Ecosystem in Alberta EndUsers Software 402 Alberta community Points of Presence (PoPs) WirelessRSPs Global Gateways Axia’s SuperNet Toronto • Seattle • Google • Amazon • Microsoft WirelineRSPs CloudProcessor Infrastructure - RackForce /Amazon FTTP– Axia Connect Hardware & Related Infrastructure - Q9 - Care Factor

10. The New ICT Fundamentals • Users of technology should be customers, not inventors. • One “real time” data base, for the whole team. • You cannot “win” by trying to employ experts whose competency is not a critical differentiator from your customer’s perspective; but you can lose. (Never more true than in ICT.) • Don’t “hire or outsource;” buy a service. • (The best tax lawyer; the best litigator.)

11. Competing with Your Customer Does Not Work! Web Service Providers Internet, SaaS, Cloud Computing,Facebook, Google, Skype,YouTube, Yahoo, VoIP, iTunes, VOD, eHealth, eSecurity, eCommerce, eLearning, Gaming, Sensor, IPTV… 75% of $ Sustained competition and diversity provides end user choice Ownership Separation • Transport Services • Natural monopoly • Excellent economies of scale • Regulation ensures economies of scale are passed through to customers 25% of $ Application Enabling Servicesand Real BroadbandTM Fibre 11

12. What Does All This Mean? • ICT sector in Alberta is in the top three by size. • The big opportunity is through the Transformation from “kit car” to expert services. • Alberta Government should buy best standard services instead of inventing expensive immediately out of date custom services… great export opportunity for Alberta ICT service providers if Alberta Government made this transformational change in thinking. • Oil and Gas sector is technology deep in exploration and in the Dark Ages operationally. • Agriculture: GPS variable rate seeding and fertilizer application and spraying…. • Sensor technologies are just starting(container vs. human).

13. Alberta Economic Strategy / Opportunity • Alberta has the digital connectivity infrastructure. • If leading industries and the GoA (learning, health, security) in the province began purchasing services from the Next Generation Ecosystem: • New sustainable industry sector. • Customers and infrastructure at home. • Export / global incremental market. • Customers win from higher performance here; Alberta wins from the collective opportunity perspective. • WIN/WIN/WIN. • There are many opportunities lined up with these fundamentals.

14. Sensor-based Technology Available? • Worker safety and security; real time surveillance of location and status of workers and auto response using sensor technology. • Comprehensive water management and quality control. • Comprehensive air quality measurement and reporting. • High performance optimization of machines: combines, tractors, sprayers… • Remote security from intrusion and plant upset response.

15. Experience-based, Infinite Opportunities? • E-commerce; e-knowledge; e-learning; e-health. • iTV a coming transformation from Apple (to rival iPhone and iPad impact). • Location Centric: • Pick up a rental car in London. • Order a taxi; Singapore. • Google Maps / Street View. • Ski Tracks. • YouTube is the #1 learning resource in schools. • Facebook; LinkedIn. • You will have your personal favourites.. • ….

16. The Future is Here • You need ubiquitous connectivity; Alberta has a head start for a rural-based economy. • If you buy a service that is shared by others, the economics and performance can be compelling. (Facebook, Google, iTunes) • Office from the Cloud; Axia annual costs from $70+ per user per month to less than $27. • SME can get business class email for $10-15 per user per month. • The ICT service sector is just in its infant stage; endless opportunities without geographic boundaries. • The only barrier is legacy / old school thinking. • Last year 30 billion apps were downloaded; that is forecasted to double this year.

17. Questions