21 June 2005 St. Kitts & Nevis

1. LNO250304LNC&W052GRGM-C1 Preparing for the CSMEvis-à-vis new and Emergent Technologies, Competition, RegulationsColin C James Chief Executive, Cable & Wireless Dominica 21 June 2005 St. Kitts & Nevis

2. Caricom Single Market and Economy • What does the Final Product Provides? • • A mechanism within CARICOM countries to respond and to take advantage of globalization • A fully developed and implemented legal framework • •A stronger collective governance framework • The full enjoyment of national treatment by citizens and nationals of all Member States in respect of • Production and trade in goods • The provision of services • The free movement/transfer of skill and capital • Growth and expansion of intra - regional trade

3. CSME – C&W a role Model • C&W has been here for over 100 years • A pan Caribbean operator in 13 territories • The development of Caribbean nationals & the transfer of talent • First Caribbean Female CE in Region: Patricia Walters in SKN • Caribbean Nationals make up 99% of Senior Management. • •Ubiguitous Service offering; common look & feel to products • Centralised Service Platform for economies of scale • •Strong Presence of Community Stewardship & Sponsorship • Improved standards of employment = improved standards of living

4. C&W & the CSME Technology

5. Customers Buy Applications not Technology Leading edge vs. Bleeding edge • Building Infrastructure is capital intensive • Relies heavily on external financing, necessary for upgrade and maintenance • Must balance POTS and PANS • Population 69,000 • Size – In Square Miles-289 • GDP per capita in USD$1,987 • Age profile • 0 – 19: 26,781 • 20 – 34: 14,799 • 35 – 54: 15,555 • 55 – 65+: 11,500 • Unemployment – Percentage-15.7%

6. Platforms that empower people & business • Seamless & Virtual business operation across the region (E.g. ECCB Video Conference Facility) • Multimedia • Remote access and management, across islands • Borderless virtual communities • On-line payments; self provisioning • Development of local content & Active Internet community

7. C&W & the CSME Competition

8. Competition How is Cable & Wireless Preparing? • Focus on our strengths: • Leverage of Scale and Full Service Provider status • The convergence of technologies • Mobile & Broadband is the way of the future • Stay on message with Strong Brand, and product sub-brands • Efficiency in Product definition & rollout • Single development & multiple execution • Strategic partnerships; Opportunities for consolidation • Increasing our footprint by taking advantage of opportunities • Customer Service; Good internal = Good external

9. Personal Internet Communicator • Affordable entry to Internet • Robust, easy to use for newbies • Max2, Coming soon! • ***Literacy Program***

12. C&W and CSME Regulatory

13. Promoting a Fair Regulatory Regime Multiple Regulatory Regimes • Principle of cost oriented rates for wholesale, price caps etc. • DOM SKN,GDA,SLU,SVD: Eastern Caribbean Regulatory Authority ECTEL • Local NTRC • JAM: Office of Utilities Regulations OUR • CAY: Information Communications &Technology Authority ICT • BGI: Fair Trading Commission FTC • AXA: Public Utilities Commission PUC • Analogous regulations in each jurisdiction ensures a high level of fairness and uniformity • Uniform treatment balanced by individual sovereignty

14. Regulation (ECTEL) ECTEL's approach was clearly motivated by CSME type concerns. • Common IDD rates to some destinations: • Between ECTEL States EC $0.50 per min • Between ECTEL States and another EC $0.66 per min • CWWI operating company • Between ECTEL State and another EC $0.99 per min • country within the Caribbean • Price cap plan in each country: • Residential line rentals across ECTEL differ by no more than 25% • Business line rentals differ by no more than 18% • Fixed to fixed calling rates differ by no more than 35% • Fixed to mobile calling rates differ by no more than 35%

15. Regulation: Summary How is Cable & Wireless preparing? • Support for the Regulatory process: Fully resourced legal & regulatory team • Better resourced regulators are more process conscious • Uniformity does reduces the cost of Regulations • Harmonization of policies and products to improve the customer experience • Ensure balance of Regulations with scale and individual sovereignty • Flexibility must be maintained to deal with local circumstances • Leverage on our Scale & experience to remain competitive.

16. C&W & the CSME The benefits as we see it • An excellent Telecommunications Network is needed for reliable exchange of information • Optimal allocation of our Resources • Increased Revenue services through production integration • Access to entire CARICOM Market in first instance and to market opportunities abroad • Enhanced competitiveness • Increased opportunities for Cable & Wireless’ employees in the new CSME environment • Net positive impact on the profitability of our Companies • Removal of barriers = growth

17. Caricom Single Market and Economy “We must all hang together or assuredly we shall all hang separately.” Benjamin Franklin

18. C&W & the CSME “A local reality” DVD presentation